One of the mysteries of the world is the largest 3 pyramids – how did ancient people built it? It is an enduring mystery for another of reasons – one we all believe we are in the smartest and best society – could we do it? no one knows. The second reason is of all the records left by ancient Egyptian world – there are no records of how the pyramids were built. This means there are guesses – some off the wall, some seemingly accurate but not one is the answer.

In a book called How the Great Pyramid Was Built by Craig Smith published by Smithsonian Books, Washington, DC, 2004. Mr. Smith worked for one of the large engineering construction firm. Over the years, he was interested in the mystery until one day while doing his day job, thought why not prepare the same principles of construction management as he was doing? Mr. Smith had access to his company’s software and using research and best estimates began the journey to discover what would be needed and when. Mr. Smith began his construction logic diagram and began to fill in the numbers. Why that site? where did the blocks come from – how would they be moved? what does the site tell you. The Egyptians moved blocks from a nearby quarry and from other quarries by constructing a canals and a harbor. As Mr. Smith was filling it his program – the picture began to unfold. Mr. Smith believes ramps were made until midrise of the pyramid and then they were pushed up. In his book he calculates the number of people needed and comes to the conclusion it was do able.

Linking to dividend paying stocks, how the great pyramid was built is a great example of investing. There are many things we do not know, but we do know some elements. With those elements we can forecast what should happen under reasonably normal circumstances. There will be unknowns which means as an investor trying to keep your decision making simple is a good thing. For dividend producing stocks – the big question is will the dividend be paid. Yes then can it raised or what is the margin of safety and other questions come. If you believe because of competitive pressures the answer is no, then move to alternatives. This is the reason why you need to do some homework to know what is good to move to, if and when you decided to change your allocations.

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