Although the rules were different, than they are now, it is interesting to note Mr. Carnegie’s investment strategies which were outlined in the book Andrew Carnegie by David Nasaw, Penguin Press, New York, 2006

Only invest in companies you have investigated yourself

Only invest in companies which you have insider knowledge

Only invest in companies that sell goods or services for which demand is growing

Never invest as an individual but as a group with trusted associates who together will own a controlling or dominant interest in the company.

The above can be easily translated into before investing do your homework or investing takes time. You have many biases and interests, stick to those areas for not only will you be informed, you will stay informed and be able to answer why this company? Investing in growing companies is sometimes easier than companies that need to be turned around. Investing with a group whether it is a formal mutual fund, semi-formal one, but people you know and can banter ideas around with.

When Mr. Carnegie merged his steel company into US Steel, he was very wealthy and his aim in life was to give the money away. He decided to invest in libraries, partly because when he was young there was very few and he enjoyed reading. He gave money to his home town – where he spent time as a youth, and where the steel plants were in Pittsburgh as well as to national interests. He often gave money as seed money, with the expectation the trustees would operate and grow the funds. Many teachers in the US have a pension in the TIAA CREF fund, Mr. Carnegie seeded this pension fund. As well as a number of other Carnegie Endowments for peace, science and music.

Linking to dividend paying stocks, the dividends can be used for reinvesting into more investments, some can be used for expenses and some can be used to give back to your community to reflect your interests. To give back, it is highly useful to be able to count on income or dividends every year. When Mr. Carnegie was giving money away at $15 to 20 million a year, he was also earning a similar amount so he had a lifetime of giving money away.

There are more questions than answers, till the next time – to raising questions