As consumers we believe the end product we buy has found its place into the marketplace legally and generally as ethical as we are. Recently a book called Bitter Chocolate by Carol Off published by Random House, 2006 was read. The book tells both a history of the chocolate companies who supply us with delicious chocolate and about the sourcing of the beans. At one time the beans came from Latin America (think Columbus discovering America) later it was realized the plant would grow in Africa. Similar to all companies who wish a diversity of suppliers having both locations is a very good solution and does not mean reliance on the commodity markets. In terms of the people who harvest the plant or the subcontractors, unfortunately the story of very poorly or almost slave wages is a continuing theme throughout the history of people enjoying chocolate.

Linking to dividend paying stocks, if you keep your focus on the companies at the end of the food chain and on the positive aspects of the product, keep your readings on Hershey, Mars, Nestle, Rowntree and others is the way to go. In many industries they rely on subcontractors who rely on subcontractors, and the division of resources gets smaller. Near the top of the group is where the profit margins are consistently higher and that is where your investment dollars should go.

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.

Shortly after Coca-Cola was being sold, the company embarked on a selling campaign. At the time, it was one the biggest companies in the advertising business. It gave away millions of items including school supplies, clocks, lighters, trays, Japanese fans, tiffany-styled lampshades all marked with the Coca-Cola name. The idea was to make the drink part of everyone’s life or be part of the national culture. The company was the biggest advertiser on billboards and painted over 20,000 barns around the US, with the idea where people go they should be part of Coca-Cola. If the drink is part of people’s lives then they will order it by name. When the automobile was invented, the company ensured the driving public was served well.

Linking to dividend paying stocks, there was a large upfront payments for the advertising, but combined with a legal department which vigorously fought off similar named companies, Coca-Cola was able to prevail. Part of the reason why they prevailed was the company provided the raw materials (the syrup), the quality assurance (sent out its own inspectors) for independent franchise holders (bottlers) to sell the public. In many ways you can think of successful franchising companies. The company used franchising to save money and because the owner did not recognize the money that was to be made in doing it yourself.

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.

From a corporate point of view, the history of Coca-Cola is attached to the families who owned or controlled the majority of the shares. If you live in Atlanta area, the names of Candler and Woodruff are well known. As Coca-Cola became successful, the two families became very wealthy. At first the Candler family ran the company and then came time for the next generation, none of the Candler family wanted to be President and the company was sold to the Woodruff’s and the public. The father gave the Presidency to his son, times changed and the company is now run by professional managers. The transition from family control to managerial control and how decisions are made often means companies go through less than stellar financial years. Partly because of control issues, but also because people do not want to change what has been successful in the past. Two examples at Coca-Cola involving the little bottle. Management believed consumers bought the product because of the bottle (not what is inside it). It took years and new management before the change was approved. Another example is in the 1940’s, costs were up and a desire to raise the price of the bottle from 5 cents to less than 10 cents. One solution proposed which was sent to the White House and turned down was to mint a 7 1/2 cent coin for the vending machines. At the time many bottles were sold at the vending machines, not the grocery stores as now is the case.

Linking to dividend paying stocks, if you own shares in a family controlled company you have to pay attention to the Boardroom. Every company attracts good people to it, however not all good people want to work for dysfunctional companies. If you see a heavy then normal rotation among the senior executives, the best you can hope for is a buyout of the shares or takeover. For the alternative is the President or Chairman giving little authority to people who want to do good.

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 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