If someone in your family had bought one share of Coca-Cola in 1919 at $40, the single share would be worth $102,000 in 1994 and if they had reinvested the dividends, the value to the shareholder would be over $ 2 million. That single fact is worthy of ensuring the bulk of your investments in the market is in dividend paying companies. In a book by Frederick Allen called Secret Formula – How Brilliant Marketing and Relentless Salesmanship Made Coca-Cola the Best-Known Product in the World, HarperCollins, NY, 1994. Since the book in 1994, the values listed in the first line have increased as the profits of Coca-Cola have increased, it is still a highly recommended stock to buy and hold.

Many people around the world have tasted Coca-Cola – it is made from the coca leaf, kola nuts, sugar, caramel, served in carbonated water. It tasted good and was founded in Atlanta, Georgia. From the coca leaf comes the by product cocaine (there is none in Coca-Cola) and from the kola nut comes caffeine. The previous ingredients creates a bitter taste so sugar was added, caramel for colouring, and lime juice, citric acid and phosphoric acid and spices are added to enhance the flavour. Originally the drink was very similar to the energy drinks of today, now it has much less caffeine. This leads to the myth of the secret formula. It is true there is a formula in a safety deposit box in a bank in Atlanta not to opened unless the Board of Directors approves it. The myth is the formula has never been changed, it has, but since the 1930’s the formula has been altered very few times. The Chairman of the company would not allow the change even though the raw materials had to be adapted.

Linking to dividend paying stocks, every successful company has some myths around it. Some of them are true, some of them are half true, but they all play a role in the culture of the organization. In the case of Coca-Cola, the Chairman of the Board who controlled the shares of the company insisted of having no change to the taste of the product. The desire was and still is, anywhere you go around the world, the taste of Coca-Cola is the same. That is one thing to say, it is another to do, it is a credit to the people of the company to ensure while the myths develop the taste remains true. The key is to continue to meet the expectations of the buyer, in all kinds of situations, while enhancing the myths or the culture of the company.

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

If someone in your family had bought one share of Coca-Cola in 1919 at $40, the single share would be worth $102,000 in 1994 and if they had reinvested the dividends, the value to the shareholder would be over $ 2 million. That single fact is worthy of ensuring the bulk of your investments in the market is in dividend paying companies. In a book by Frederick Allen called Secret Formula – How Brilliant Marketing and Relentless Salesmanship Made Coca-Cola the Best-Known Product in the World, HarperCollins, NY, 1994. Since the book was published, the values listed in the first line have increased as the profits of Coca-Cola have increased, it is still a highly recommended stock to buy and hold.

One of the many reasons for the success of the company is their ability to change a negative to a positive. An example of this is the secret formula in Coca-Cola has sugar in it, during the World War years the ability to gain access to sugar was restricted by the government. The lobbyist were pounding on the doors of the government or lobbying behind the scenes, the company gave in gracefully when the cause was lost and then the company associated the product with the highest national interest. For example, the press releases of the day, said it was a privilege for the company to sacrifice its sugar to the American fighting man. The statement is half right for the company and all right to gain goodwill among the public.

Linking to dividend paying stocks, every company does lobbying with the government, most of the time it is to ensure the government does not interfere in the business too much. For a large institution what sounds like a small amount, ends up with a large bill to pay. For a company to have very goodwill with its customers, what happens when the company loses one of the battles is the important thing. All companies lobby for their interests, the ones that seemingly know how to compromise are the long term winners.

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

Every year non profit organizations hold events and it is heart warming to read the 15th annual or whatever the number is because whatever the organization is doing something people enjoy and look forward to. Most events begin small and receives a bump every once in a while and then it becomes the event for the non profit organization. As long as it important to its supporters and the people who run the event, the event continues. For people who support the organization the events help define the calendar and the expectations of time commitment. The author was listening to the radio and the radio host listed some of the events he was associated with and soon the date was next year.

Linking to dividend paying stocks, if a company is profitable and pays a dividend, then it should continue for years to come. It is a challenge to stay profitable but many companies do and those are the ones the bulk of your money should be invested in. The risk return ratio is lower, you can set your calendar for the dividends and as they are paid, you can determine if the stock is a keeper. As the dividends are paid it is your choice what to do with the money, but the important thing to do is have choice. Assist whatever your non profit is, but keep the bulk of your investment funds in profitable, dividend paying stocks and your year will continue to be fulfilled.

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

Living in the Northeast part of North America where one season begins and people are looking at the next season at this time of the year there is a great mix of outer wear. The temperature begins to fall and the weather is a little cooler, but we are still in fall. The leaves have not fallen yet and no frost has been seen, but when you people watch to see what people are wearing . The results indicate a variety of styles – some people dress as it is still summer wearing shorts, some dress for the fall or a few extra layers, and others dress in winter coats as if winter is here already. Dressing is an individual decision but who is right of the three examples? Some days the sun comes out and shorts for a few hours during the afternoon seem fitting. If you dress in layers, the layers can come off during the sunny afternoons and back on during the evenings. If you dress in winter coats, and the mornings and evenings are cool, but you are warm is that not right?

Linking to dividend paying stocks, similar to the very different styles of clothing people wear there may not be one correct answer. In general, a layer look works well for the fall weather, however you do see the risk takers – too hot or too cold. Similar to the styles of clothing people wear there are a wide variety of investment styles all work at some point in time but for the long term consistency – layering works – either add or take off a layer and you will be enjoying the weather. In this example layering is the dividend stocks which layers a dividend payment and long term capital growth.

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

When the author was growing up the majority of people smoked cigarettes, when adulthood was reached the number fell into the minority. Cigarette smoking is legal, a good deal of the price is taxes and people still smoke. This is in contrast to a John Hopkins University study which looked at the effects of tobacco smoking on children in low and middle income countries. A survey of 400 children in Shanxi province in China found 71% of the households had at least one smoker. From a marketing point of view 86% could identify at least one brand of cigarette. 22% said they intend to smoke; in India the number was 30% and in countries of Nigeria, Pakistan and Russia similar numbers were arrived at.

Linking to dividend paying stocks, some of the best growth and dividend paying stocks are the cigarette companies. From a medical perspective the numbers generally mean health costs in the countries surveyed with rise, from an investment in cigarette companies – the above numbers indicate the companies have a rosy future. It cost pennies to make cigarettes and they sell for dollars or the profit margins are high. In many higher income countries, the ability to market is restricted, but not in every country as the survey shows. As China and other countries continue to generate a larger middle income group, there continues to a very healthy demand for nicotine sticks or cigarettes and opportunities to look at health companies to treat the cigarette smokers.

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

Some of the people the author works with study cars – models, engines, designs, and the different models from each major market of Europe, Asia and North America. From a listener point of view, it sounds like the people spend a great deal of time on cars. It is not surprising in an era of more very wealthy people, some models of cars are setting new records for collectors. Recently a 1963 Ferrari 250 GTO sold for over $50 million dollars. For most of us, we would do considerable research into buying a vehicle for less than $30,000; 50 million is a very significant number. Not every Ferrari is going to sell for millions, but it seems some years do better than others. For the 1963 model only 39 were built and it had the ability to do racing and to drive around town. Although for most of us, after we drive a new car home, for the first little while, we worry about minor dents, scratches, or even dirt on the car. One wonders what the owner of a $ 50 million dollar car would worry about and if he (likely buyer is a male) drove the car.

Linking to dividend paying stocks, similar to everything in life, many things are collectibles and accumulate in value. By narrowing down your field to your interests, there is value in collecting. Not everything will do as well as owning an old Ferrari, but remember the story of e-bay where one of the first items sold was a candy (Pez) holder. With collecting, the key is collect something you are interested in and you will find the limited market who you can sell to. Your collectibles may strike it rich or you may just have fun collecting. One sure way to strike it rich is to buy profitable stocks than pay dividends and over the years – the dividends plus the capital gains will make you richer.

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

The world’s most popular activities are walking and people watching, often they are a combined activity. Along the way to people watching in the urban areas, it often involves walking on sidewalks. The design of sidewalks is interesting, until 10 years ago, most sidewalks were for able bodied people as the sidewalks are raised above the road. For the United Nations Year of Disabled, many municipalities put in sidewalk cuts where the sidewalk meet the road intersection. Now all sidewalks are built with sidewalk cuts. If you people watch you can see how people use the sidewalk – some are able bodied and can step around any obstacle; some will be pushing a stroller either for kids or for groceries; some will have a small disability and the cuts are very useful; some will be on motorized vehicles to increase their mobility; but all benefit from the sidewalk cuts. It is interesting to consider for a great many years, the cut was standard for cars to access their parking garages, but it took the Year of the Disability for everyone to access the sidewalk equally.

Linking to dividend stocks, the above brings the question of how do people use the product or service of the company you own?. How they use it and how management thinks they use it can be two different things. The question sounds simple, but to get it right is actually more complex than is first seems to be. If you see products that are consistently designed right, other analysis are needed in order to make investments, but good design is a big step in the right direction.

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

At one time John Paul Getty was the world’s richest person and made his wealth in the oil business, While his financial dealings are to be celebrated, his personal life was a revolving soap opera. The soap opera details are highlighted in The House of Getty by Russell Miller, Michael Joseph, 1985. John Paul Getty was a successful independent oil man involved in the drilling for oil business. In the early 1930’s Mr. Getty decided to reach further eventually buying Tide Water Associated Oil Company which was one of the biggest refinery and distributer of oil in the US. Eventually everything was rolled in Getty Oil with Mr. Getty as the largest shareholder.

Linking to dividend paying stocks, that is one method to achieve success, however the odds of doing it are very long indeed. The risk of losing everything as Mr. Getty did were very real. If you consider when Mr. Getty he went after Tide Water, there were only 6 other choices and two of them including Standard Oil were too big to even try. Another method to achieve wealth is buy shares in profitable companies and continue to buy shares with the dividends you receive. At the first the numbers maybe small, however over the years the numbers increase and so does your wealth. In this fashion, you keep the bulk of your investments in profitable companies which pay you an annual dividend which helps you maintain a low risk solution.

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

If you are lucky enough to live in the northeast part of North America at this time of the year the trees have changed colour before the fall leaves fall to the ground. Then it is winter. If you are in the area at this time of the year and the sun is shining, the landscape looks spectacular – the sun hits the leaves and the vibrant colours ranging from the greens of the evergreens to oranges, browns, reds and other colours make any drive very pleasant and worth seeing.

Linking to dividend paying stocks, the fall colours happen every fall, it is the nature of the cycle of trees and other plants – they change colour. The other seasons have their beauty although at this time of the year looking around you see it – sometimes  you have to learn to appreciate – snow, snow on plants. Similarly for profitable companies the dividend payments are a lovely time to look forward to and receive. It can be the cycle of investing for you, buy stocks that pay dividends ensuring regular payments through the years and at various times the shares will go up in value as a wonderful bonus.

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