Month: April 2019

The Art of Preventing Stupid

If you own a small business (like me), or even run a medium size or larger business, you need to read the book, The Art of Preventing Stupid: How to Build a Stronger Business Strategy Through Better Risk Management by Matthew Neill Davis, Esq.

Businesses can’t avoid problems completely, but they can prepare for them and they can do many things to prevent problems as much as possible. Davis explains how businesses can do this, and one of the key ways is to avoid the stupid mistakes. The other strategy a business owner can utilize is to know how to deal with problems before they arise.

These strategies are covered thoroughly in the book. Probably the most important chapter is Chapter 6, The Preventing Stupid Method.

The book has many easy to understand tables and figures, and ends the book with actual case studies. In addition, the author provides bullet point summaries at the end of each chapter.

So if you want to prevent major problems (including bankruptcy) with your business, and how to deal with problems when they do happen, you should read  The Art of Preventing Stupid.

Water Stocks are Floating on Dividends

by Fred Fuld III

If you are looking for growth along with income, you should check out the water utilities. Most communities are served by governmental water district entities, but residents of some communities buy water through publicly traded companies that own water rights. The nicest feature about these companies is that they are practically recession-proof since people don’t stop showering or drinking water. There are several of these water companies that investors can choose from.

One example is American States Water (AWR), founded in 1929, which is a distributor of water in over 70 communities in California. It trades at 35 times forward earnings and pays a yield of 1.58%. Last summer, the company raised its dividends by 7.8%. Earnings for the latest quarter were up significantly, by 23%, year over year.

Aqua America (WTR) distributes water to customers in Pennsylvania, Texas, North Carolina, Ohio, Illinois, New Jersey, New York, Florida, Indiana, Virginia, Maine, and Georgia. The stock has a forward price to earnings ratio of 24, and yields 2.41%. The company has raised its dividends every year since 1988 and has had many stock splits during that time.

Connecticut Water Service (CTWS) trades at 29 times forward earnings and yields 1.83%. The company, which was founded in 1956, serves customers in over 50 towns in Connecticut.

Maybe I’m all wet but one of these water companies might just clench the thirst of your portfolio.

Disclosure: Author didn’t own any of the above at the time the article was written.

From Monk to Money Manager

“Money is not the root of all evil. Money is the root of everything, good and evil. Ignoring half the truth blinds us to the truth.”

From Monk to Money Manager: A Former Monk’s Financial Guide to Becoming a Little Bit Wealthy – And Why That’s Okay

Doug Lynam used to be a monk, and he’s now a financial advisor. He’s a sort of unicorn to most people, but that’s what makes this book so important. For too long religion and money have been held separate. But as Lynam says, “The cold, hard truth is that in this modern life we need money. We can’t live our lives and serve others without it.”

Lynam joined a monastery, in part, to escape the world of money and ended up spending more time worrying about money than almost anyone in the outside world because the monastery was going broke – and he had to fix it. Another irony, directly related to the first, is that he learned he is good at helping people with their financial problems.

The lessons Lynam learned as a monk made him realize that the most powerful way for him to have an impact in the world was to leave the monastery and advise people about their finances full time.

What makes this book different is Lynam’s unique background and experiences that have brought him to where he is today and the helpful mindsets he shares. This is a different kind of ‘financial book’ because of the connection of money problems to the personal and spiritual components. Lynam helps people uncover what those are to avoid them all getting tangled together.

Lynam wrote From Monk to Money Manager: A Former Monk’s Financial Guide to Becoming a Little Bit Wealthy – And Why That’s Okay (Thomas Nelson, March 26, 2019) as a mass-appeal book intended to hook adults of all ages, religions, and political persuasions because the discussion of ethics and money impacts you regardless of your beliefs. He believes the lack of money is the key driver for most of the suffering in the world, and if we can face that problem squarely, honestly, and with good minds and hearts we can mitigate some of the worst problems in the world.

More specifically, the book is aimed at anyone who wants to learn how to become wealthy while remaining an ethical person. Even more precisely it helps anyone who wants to:

•       Retire on time and with dignity
•       Live debt free
•       Pay for college
•       Stop living paycheck to paycheck
•       Afford quality healthcare
•       Own a home
•       Start a business
•       Conquer their emotional money baggage

Doug Lynam, author of From Monk to Money Manager: A Former Monk’s Financial Guide to Becoming a Little Bit Wealthy – And Why That’s Okay, is Director of Educator Retirement Services at LongView Asset Management in Santa Fe, New Mexico, is a self-proclaimed Suffering Prevention Specialist.

How to Invest in Ride Hailing Stocks

by Fred Fuld III

Did you notice what happened with the IPO of Lyft (LYFT)? The stock came out at $72 per share and immediately jumped to 88.60 per share. Since that time, it has drifted downwards, and closed at exactly 70.00 today, two bucks a share below its original offering price.

The stock has a market cap of almost $20 million but no earnings. The price to sales ratio is 7.61.

Lyft’s biggest competitor is Uber, which hasn’t gone public yet. Unless you are an accredited investor who may have gotten pre-IPO shares, the chances of you getting some IPO shares from your broker are slim.

Currently, the largest shareholder of Uber is Softbank (SFBTY), the telecommunications and e-commerce company based in Japan. The company currently owns about 15% of Uber. Softbank trades at 9.42 times trailing earnings and even pays a small dividend of 0.40%.

There is a small publicly traded company called HereCar (HYRE) which has a business that allows car owners to rent their idle cars to ride-sharing service drivers. The company has a market cap of $63 million and a price sales ratio of 4.55.

Hopefully one of the ride sharing stocks can your portfolio for a ride to higher profits.

Disclosure: Author didn’t own any of the above at the time the article was written.

Every Woman’s Pocket Guide to Financial Sovereignty

by Fred Fuld III

If you are a woman who wants to learn all the basics about personal finance, it doesn’t matter what stage you are in life, you need to read It’s Good to be Queen: Every Woman’s Pocket Guide to Financial Sovereignty by Roselyn Wilkinson.

The book covers all aspects of money in an easy to understand format. Wilkinson doesn’t just describe the “what” and the “how”, she also gives the “why”.

The book details everything from budgeting, to insurance, to debt, to investing. Chapter 11 discusses the option of finding a financial advisor and how to find a good one.

Readers will also enjoy the humor of a few cartoons scattered through the book.

I recommend It’s Good to be Queen: Every Woman’s Pocket Guide to Financial Sovereignty by Roselyn Wilkinson to any woman who doesn’t have considerable knowledge about finance and money and wants to learn more.