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The One Thing You Need to Do to Make Money

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A lot of folks – hopefully, not you – won’t like the message below.

That’s a problem. We could even say it’s a “monumental” problem.

They won’t see the richness it could bring… the problems that it could solve… and how much simpler life would be if they just followed this simple advice.

You see, we were recently asked to take part in a documentary.

The topic is one we know quite well… money.

How do we make more of it? What’s it mean to us? What are we doing that other folks aren’t?

We joined more than three dozen other successful investors in the series. The filmmakers tracked down the world’s most famous, richest and most successful wealth experts…

People like Shark Tank star Kevin Harrington, wealth building genius Garrett Gunderson, real estate legend Kim Kiyosaki and even the bald guy who gets up early to write you each morning.
At first, we thought the idea was silly.

Forty voices on the same theme is a recipe for nothing good. It’s like adding all the spices on the rack to a dish and handing it to our guests.

Their faces will sour. Their taste buds will revolt with confusion.

Stick with one or two that match your views, we thought, and explore them to the core.

But Things Change…

We could surely talk a whole lot more than the 20 minutes allotted to us… We could have given viewers all they need to know about making money. There’d be no need to find 39 other experts.

But then a pandemic struck…

And our streets were lit on fire…

Through it all, we heard just two voices – the outraged and the outrageous.

One says cops kill. The other says open fire.

One says wear a mask. The other says you can’t make me.

It’s pretty silly, but we get it. It’s just easier to think that way – light and dark; right and wrong.

But, our friend, we’ve been a lot of places in this world. We’ve seen a lot (some days we wonder whether we’ve seen too much). And we think you’ll agree that things are never perfectly light or entirely dark.

The blackest of nights still offer rays of light. And the brightest of days still feature plenty of shade.

In fact, the only time it’s truly dark… is when we close our eyes.
[mw-adbox]

So tear down the monuments, toss some dynamite on Mount Rushmore… tear up those pictures of your old heartbreak.

It’ll do no good.

The problem isn’t in the tales of yore. The problem is in the folks listening to them.

But that’s not where we aimed to have our pen take us today. Our intent – before our mind began to hop fences it probably shouldn’t hop – was to look at that documentary and the many voices and opinions behind it.

We suppose, though, that the topics are one and the same….

Mobs Are Never Right

It’s easy to fall in line with the voices we agree with. It’s easy to blend into the mob and knock that old monument to the ground.

It’s a hell of a thing, though, to stand aside the mob and say, “Wait a minute… what if.”

If we had to boil our thoughts on making money into just one idea… that’s it.

You’ve heard it from us before.

Don’t follow the herd. Don’t do what everybody else does – unless, of course, you’re fine with what everybody else gets. (That’s not much these days.)

For every way there is to spend money… there’s an equal number of ways to make money.

Buffett… Soros… Gates… and Musk… They all did it in different ways.

We’d never tell Musk he’d be better off doing what Buffett did. And the “Oracle” could never do what Musk has done.

The message this morning is quite simple. But it’s one that’s needed.

It may not be you who needs to hear it… but it’s clear many people do.

Stop and listen. Listen to as many voices as you can – the good ones and the lousy ones.

Once you hear them, you’ll realize the drone of the mob is an ugly sound.

If you’re looking to hear dozens of opinions on how to get rich – all of them proven to work by the folks touting them – then you’ll want to check out this new documentary.

We need more than two voices in this nation… a whole lot more.

What has made you stop and listen… and ask, what if? Let us know your thoughts here.

The post The One Thing You Need to Do to Make Money appeared first on Investment U.

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By: Andy Snyder
Title: The One Thing You Need to Do to Make Money
Sourced From: investmentu.com/one-thing-to-make-money/
Published Date: Mon, 29 Jun 2020 10:45:53 +0000

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How to Choose High-Quality Biotech Stocks

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Despite continuing market volatility, the S&P 500 has remained relatively flat in 2020 – down just 1.66%.

But there is a silver lining…

The biotech sector is up more than 18% since the start of the year.

Many of you know Marc Lichtenfeld as the “income guy” because of his work with The Oxford Income Letter

But he’s as passionate about biotech investing as he is about dividends.

In fact, he’s been tracking the sector for several decades now and has spoken about biotech opportunities at events all over the world.

Last year, Marc hosted a summit with former Speaker of the House Newt Gingrich to uncover the opportunities within the gene therapy subsector of biotech.

Since then, gene therapy companies are up nearly 40%. (Compare that with the measly returns of the S&P!)

It’s clear that Marc has a knack for finding biotech stocks that are poised to take off – just ask his subscribers who landed 2,381% gains on his recent recommendation!

So, in Marc’s latest State of the Market video, he addresses a common question from readers…

“What do you look for when you invest in biotech companies?”

In the short video, Marc outlines the five specific qualifications he looks for before recommending a biotech company.

Click here to watch it now.

Good investing,

Rachel

The post How to Choose High-Quality Biotech Stocks appeared first on Investment U.

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By: Rachel Gearhart
Title: How to Choose High-Quality Biotech Stocks
Sourced From: investmentu.com/how-to-choose-high-quality-biotech-stocks/
Published Date: Sat, 11 Jul 2020 17:30:56 +0000

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The Complete Breakdown of Berkshire Hathaway’s Subsidiaries

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In 1965 Warren Buffett’s partnership, then known as the Buffett Partnership, took control of a textile company named Berkshire Hathaway. The company was destined to go out of business, but at the time was selling for below the company’s working capital; a classic cigar butt.

Rather than continue to build the textile company into a profitable business (an almost impossible task) Warren Buffett decided to start buying equities, and eventually entire businesses, through Berkshire Hathaway and start to build what would become one of the largest corporations on earth. 

Today, 55 years later, Berkshire Hathaway is widely known as a worldwide conglomerate with dozens of companies, billions in equities, and a CEO approaching his 90th year on earth. While it would prove daunting to summarize each of Berkshire’s 80+ subsidiaries in one article, it may help anyone interested in Berkshire Hathaway to understand their largest subsidiaries as well as their largest equity holdings. 

Berkshire, like many other companies, categorizes their areas of operations into distinct segments within their annual report and groups their subsidiaries into the following categories:

  • Insurance
  • Railroads
  • Utilities
  • Manufacturing
  • Consumer Products
  • Service
  • Retailing

Insurance

Unsurprisingly, Berkshire starts out with an overview of their insurance operations, which as stated in their report brought in total revenue of $61 billion, representing 24% of their total revenues, and includes GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group. 

GEICO

GEICO, which stands for Government Employees Insurance Company, insures automobiles, motorcycles, all-terrain vehicles, recreational vehicles, as well as homeowners, renters, and life and identity management. GEICO was purchased by Berkshire Hathaway in 1996 and is currently the second largest auto insurer, after State Farm. 

Berkshire Hathaway Primary Group

The Berkshire Hathaway Primary Group consists of multiple different insurance operations which collectively offer commercial motor vehicle insurance, workers compensation, commercial property, healthcare liability, business owners’ insurance, as well as a number of other insurance offerings. 

Berkshire Hathaway Reinsurance Group

Berkshire Hathaway Reinsurance Group consists of a range of different reinsurance offerings to both insurance companies as well as other reinsurance groups. Their reinsurance offerings include coverages on property casualty and life and health, most of which is written through Berkshire’s subsidiaries National Indemnity and General Re. 


Railroad

Burlington Northern Santa Fe

Ten years ago, Berkshire Hathaway acquired Burlington Northern Santa Fe for $34 billion, and in 2020 the company had 40,750 employees, and over $5.4 billion in net earnings. In 2019 the railroads brought in $23 billion in revenue, 35% of which came from consumer products, 27% from industrial products, 21% from agricultural products and 17% from coal, equaling 9.2% of Berkshire’s total revenue.


Utilities and Energy

Berkshire Hathaway Energy

In the late 1990s Berkshire acquired 90.9% of Mid-American Energy, now called Berkshire Hathaway Energy, with Greg Abel and Walter Scott owning the rest. In 2019 Berkshire’s utilities and energy businesses brought in a total of $2.8 billion in net earnings, a 39% increase from their earnings just two years earlier. Today, Berkshire Hathaway Energy comprises of numerous different operations including PacifiCorp, NV Energy, Norther Powergrid, and others, including their recently announced purchase of Dominion Energy’s assets. Berkshire’s utilities and energy operations collectively brought in revenue of $20.1, equal to 8% of Berkshire’s total.


Manufacturing Businesses

Berkshire Hathaway has a number of different manufacturing companies which together brought in revenue of $62.7 billion in 2019 or 24% of total revenue. Berkshire’s manufacturing businesses are categorized between industrial products, building products, and consumer products.

Precision Castparts

Precision castparts, which was acquired by Berkshire in 2016, produces high quality metal components that go into complex machinery such as aerospace equipment and power and energy applications. 

Lubrizol Corporation

The Lubrizol corporation was acquired by Berkshire in 2011 and is currently one of the largest manufacturers of specialty chemicals such as additives used for engines and drivelines as well as chemicals used for home care, performance coatings, and skin care. 

International Metalworking Companies (IAC)

IMC, otherwise known as ISCAR, was acquired in 2006 and is one of a few large manufacturers of metal cutting tools which are used in a variety of different applications and markets. 

Marmon Holdings

Berkshire paid $4.5 billion in 2008 to purchase Marmon holdings which operates in a wide range of different segments including foodservice technologies, water technologies, retail solutions, metal services, plumbing, refrigeration and more. 

Berkshire’s other industrial holdings include CTB International Corp, LiquidPower specialty Products, and a number of other, smaller corporations not laid out in their annual report. 


Building Products

Separate from their industrial operations, Berkshire also owns a variety of building operations which they have acquired over the past few decades. 

Clayton Homes

Clayton Homes provides both traditional on-site homes as well as manufactured homes through different regions of the United States. In 2019 alone Clayton Homes delivered a total of 44,600 off-site homes and in addition built 7,369 site-built homes. 

Shaw Industries

Shaw Industries is one of the largest carpet manufacturers in the country and currently designs and manufacturers over 3,700 styles of carpet and wood flooring. Shaw’s revenues are earned by selling carpet to retailers and distributors all across the country. In 2019 Shaw delivered carpet and flooring to over 40,000 retailers and distributors. 

Johns Manville

Johns Manville was acquired by Berkshire in 2001 for just under $2 billion and offers a range of different building solutions including insulation, roofing, fiber and nonwovens to markets such as aerospace, automotive, appliance, filtration, and more. 

MiTek Industries

MiTek Industries supplies the residential sector with engineered connectors, construction hardware, and computer manufacturing machinery. In addition, they supply commercial businesses in construction products and services such as curtain wall systems, masonry, and light gauge steel framing products. 

Benjamin Moore

Benjamin Moore manufactures and retails architectural coatings including paints, stains, and clear finishes. Benjamin Moore products are available at over 3,000 independent retailers. 

Acme Brick

Acme Brick is a manufacturer and distributor of clay bricks and concrete blocks operating primarily in the south central and south eastern United States. 


Consumer Products

Berkshire Hathaway owns a number of consumer products companies in a range of different areas such as apparel, shoes, recreational vehicles, and batteries. 

Berkshire’s apparel segment consists of Fruit of the Loom, Garan the maker of Garanimals, and the BH Shoe Holdings Group which owns and operates a large number of separate footwear companies. 

Apart from apparel, Berkshire owns many other consumer products companies including Forest River, a maker of recreational vehicles; Duracell, the worldwide maker of alkaline batteries; Albecca Inc., which distributes high end frames; and the Richline Group, a manufacturer and distributor of precious and non-precious metals. 


Service and Retailing

Berkshire Hathaway’s service and retailing businesses brought in 31.4% of all their revenue with $79.9 billion in total service and retailing revenues, and consisting of the following businesses. 

McLane Company

Berkshire’s Mclane company offers wholesale distribution services to some of the most widely known companies in the country such as Walmart, 7-eleven, and Yum brands which collectively make up 43% of Mclanes total revenue. 

FlightSafety International

FlightSafety provides high-tech training to pilots and aircraft maintenance technicians using advanced flight simulator technology. In addition, Flight Safety designs and manufactures flight simulators for their own use as well as to sell to airlines and military organizations. 

NetJets

NetJets operates as a shared ownership program for customers wanting the scale, flexibility, and access to a large fleet of aircraft. Customers acquire a specific percentage of the aircraft allowing them to use it for a set number of hours per year. 

TTI

TTI is a worldwide distributor of small electronic components, usually ordered in bulk, that are used in a variety of different applications including electronic manufacturing services, design and systems engineers, as well as military and commercial customers. 


Other Services

Included in Berkshire’s services and retailing segment are a group of their smaller operations including XTRA, Dairy Queen, BusinessWire, CORT Business Services, Buffalo News, and BH Media Group. 


Retailing

Berkshire Hathaway Automotive

Their largest retailing business is their Berkshire Hathaway Automotive operation which as of 2019 had 82 dealerships located throughout the United States, particularly in Arizona and Texas. 

Home Furnishings Retailing

Berkshire Hathaway’s second largest retailing segments consists of their home furnishing stores which include: Nebraska Furniture Mart, Willey Home Furnishings, Star Furniture Company, and Jordan’s Furniture. Their most notable retailing business, Nebraska Furniture Mart, operates four retail stores with a total of 4.5 million square feet of retail, warehouse and administrative facilities. 


Other Retailing

Berkshire’s other retailing operations consist of a range of other businesses which include Borsheim Jewelry, Helzberg’s Diamond Inc., Ben Bridge Jeweler, See’s Candies, The Pampered Chef, Oriental Trading Company, and Detlev Louis Motorrad. 


Conclusion

In total Berkshire Hathaway’s subsidiaries brought in total revenue of $254 billion and net earnings of $23.9 billion, making it the fourth largest company on the Fortune 500 list in 2019. Along with annual revenue of $254 billion Berkshire currently holds over $100 billion in cash and cash equivalents waiting to be deployed into another monstrous subsidiary. 

While the growth of the organization has slowed in recent years, something that was bound to happen, the strength and competitive advantage of Berkshire Hathaway continues to be rivaled by very few. 

Read more great articles at Vintage Value Investing.

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By: Dillon (Mr. Vintage Value Investing)
Title: The Complete Breakdown of Berkshire Hathaway’s Subsidiaries
Sourced From: www.vintagevalueinvesting.com/the-complete-breakdown-of-berkshire-hathaways-subsidiaries/?utm_source=rss&utm_medium=rss&utm_campaign=the-complete-breakdown-of-berkshire-hathaways-subsidiaries
Published Date: Sat, 11 Jul 2020 14:00:16 +0000

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A Closer Look at Marijuana Stocks in 2020 

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What This Year Can Tell us About the Cannabis Industry

As we turned from 2019 to 2020, investors began to learn a lot about marijuana stocks. The end of last year seemed extremely promising for the cannabis industry as many companies were posting solid gains. And as we had just reached a stability point, COVID hit. The coronavirus pandemic was and is the single largest impediment to growth in the cannabis industry. And, it doesn’t seem like COVID is close to being over anytime soon. But, that does not mean that there is no room for growth with marijuana stocks to watch. Certain pot stocks have continued to show solid potential in the face of adversity.

[Read More]

After mid-March, we watched a large number of leading marijuana stocks climb by substantial amounts. Looking back, those gains have amassed anywhere from 40-150% in growth for varying cannabis stocks. As we are only in the first half of 2020, we still have several months to go before we call this year an end. With that in mind, many investors believe that marijuana stocks could continue to climb into the near future. It’s worth examining just what the industry looks like now and what it could look like in the next few months to years.

Has The Marijuana Stock Bubble Popped?

The short answer is yes. A few years ago when marijuana stocks were the talk of the town, we saw values shoot up by a lot. This was swiftly followed by a massive market correction that led into the 2019 fiscal year. Now, however, it seems as though gains and losses are occurring on a smaller basis. This is definitely a major positive for the industry. Investors have often believed that cannabis stocks like Canopy Growth Corp. (NYSE:CGC) can be too volatile to take seriously.

But, these smaller jumps and losses have made that sentiment less true. This is not to say that pot stocks are not volatile because that would simply be untrue. But, we have seen a large amount of stability creep its way back into the cannabis industry. By the year 2030, analysts have stated that the cannabis industry could be worth as much as $75 billion. Even if this is an overstatement, we are still due for a lot of growth in the next few years. This growth seems to be spread out across many different sectors of the cannabis industry.

Which Marijuana Stock Sectors Can We Look Forward to This Year?

Within the cannabis industry, there are several key areas that investors are watching for growth. This includes the edibles and derivatives markets, ancillary pot stocks, and pharmaceutical pot stocks. All of these have their different pros and cons, but all have a lot to offer investors. Derivatives have taken over investor interest in the past few months as Canada only legalized them at the beginning of this year. Since then, many cannabis companies have moved quickly to get new products onto the market.

small cap pot stocks

Ancillary pot stocks have also shown themselves to be more stable than the pure play pot stocks at times. This has made them a popular choice amongst investors that want less exposure. Lastly, big pharmaceutical pot stocks have been able to show solid growth. This growth is predicated on approvals and legislation being put in place. With this information, investors can begin to make an educated decision as to which area of the cannabis industry may be right for them. That being said, the hopes are that we can continue to see growth in the next few years.

The post A Closer Look at Marijuana Stocks in 2020  appeared first on Marijuana Stocks | Cannabis Investments and News. Roots of a Budding Industry.™.

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By: Daniel Chase
Title: A Closer Look at Marijuana Stocks in 2020 
Sourced From: marijuanastocks.com/a-closer-look-at-marijuana-stocks-in-2020/
Published Date: Fri, 10 Jul 2020 18:37:47 +0000

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