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Tuesday, December 27, 2005

How to Build Real Wealth

There's a great article on Fool.com today for long term investors, How to Build Real Wealth. I am starting to learn towards dividend paying stocks. For that reason, I invested in Pzifer. However, I will continue to trade growth stocks with a portion of my portfolio to capture some of the bull market. For the dividend players out there, please list your top five stocks and a short explanation.

Quote of the Day

If you can run one business well, you can run any business well. - Richard Branson I'm looking forward to run that one business well. =)

Thursday, December 22, 2005

Liquid Net Worth

My Liquid Net Worth is calculated based on the money I have at disposal, excluding retirement funds and primary homes. I'm not including retirement funds in my Liquid Net Worth because it's money I won't touch until I retire. I'm excluding my house as well, because I don't know it's current value, and mainly because I'm not planning to sell it.
I'm holding most of my parents' money in savings because I'm afraid of risking their retirement savings. Sadly, I have more in liability than assets, but that's because I took out $30K for down payment and that is not included in this net worth.

Friday, December 16, 2005

About Me

I thought I’ll share some information about myself so you get a better idea of who I am. I’m 25 years old and I live in New York City. Smarty is the name I use on this blog, I like the name because it’s catchy and easy to remember. I grew up in a poor family but I always have big dreams. I have an ambition to succeed in the business world and I want get out of the rat race one day.

I’m currently working in a small company in NYC as a full-time employee. I have been working there for more than three years and I’m already getting tired of working for someone else. I work more than eight hours a day and I get paid a fixed annual salary. I watch my bosses’ salaries increase tremendously faster than mine and when the company profits flourish, I get the small piece of the pie in bonuses. I don’t want to be a small guy anymore. I know this is common and I sound just like everyone else in the working class. But I want more than just a working life. I want to be wealthy and financially independent. I want to make a difference in my life and I have taken action. I have been learning to take control of my finances and investments. I follow the stock market, learning how it works, and I regularly read financial news/magazines.

I have an innate passion for investing. As a kid, I saved up baseball cards, stamps, and rare coins in hopes of them increasing in value over time. When I was a teenager, I bought bonds and CDs. Now, I invest in the stock market and real estate, and I am always in the works of coming up with business ideas.

My ultimate goal is to have enough passive income to support a nice lifestyle without working. Ideally, I would own several buildings in NYC and hold a large sum of equities with lavish dividend payouts.

One of the biggest lessons I’ve learned to become rich is that you have to know how to use money to make money. The idea is to turn your first thousand dollars to two thousand dollars, and your two thousands to four thousands, and your four thousands to eight thousands, and so forth, and the faster you do it, the more money you will have in your lifetime.

Thursday, December 15, 2005

Reading Is Fundamental for Investors

A great article to read for investors. Basically, if you want to be a smart investor, you must continously educate and update yourself. Apprenticed Investor - Reading Is Fundamental http://www.thestreet.com/pf/comment/barryritholtz/10255830.html

Wednesday, December 14, 2005

Pzifer (PFE) up 54 cents

Pzifer (PFE) up 54 cents (2.42%) and closes at 22.85. Price target: $30 I'm planning to hold this stock long term.

To pay off my student loans or not?

This month I made a one-time $3,000 payment to my student loan account and now I have about $4,400 left. I can either leave the loan balance as it as and continue making minimum payments. I will have the loan pay off by March 31st, 2006. Or I can just pay off the whole balance this month and not have to worry about it next year. The money will come from the 0% APR credit card promotion, and I can either invest that money or pay off my student loans. The loan interest rate is at 3.87%.

Tuesday, December 13, 2005

Pfizer Inc. (PFE)

Bought Pfizer shares at low 21's. Pfizer Board Boosts Quarterly Dividend From 19 cents a share to 24 cents. Trailing P/E: 20 Forward P/E/: 11 Total Cash: 13.4 B Current price near 52 week low. Charts seem to show a reversal.

Philadelphia Investment Update #9 - Purchased New Oven/Stove for Tenants

I recently received a call from my tenants that the oven is not working. It would not turn off with a switch and would require shutting the gas pipe to shut it down. Instead of paying for someone to come and look at it and then pay for the repair, I decided to buy a new oven/stove combo unit for them. Also, the old unit had been 15 years old, so it makes sense to buy a new one. I went online and order a combo unit shipped to the tenants' house. The total bill came out to $320, including shipping and tax.