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Article Index

The Six Questions that Can Make You Rich (Part One)

By , Money Morning -

Do you want to be rich or do you want to be poor?

That is the question that every American must ask.

As we noted last week, investment in technological innovation and global scale has been a key driver of wealth creation for the richest of the rich around the globe. But it also has led to the elimination of many lower income and middle class jobs across the country.

It's an economic phenomenon first explored by the classical economist David Riccardo called "Technological Unemployment," and it's beginning to affect individuals with even six-figure salaried jobs around the world as technology grows ever more sophisticated.

That got our team at Money Morning talking about the best ways to identify radical technology innovation and help readers protect their wealth, restore their confidence as investors, and identify the next breakthrough on the horizon.

By answering "yes" to six questions, one can identify the stocks and technologies on the cusp of being the next breakout, one that will rival the financial booms seen during the dotcom and current mobile tech era.

There are six questions that you can ask yourself when you begin investing in a company for its "next-generation" technology.

Now, this strategy won't guarantee that the innovation will be the next iPhone or America Online (at the time, AOL changed the face of the personal internet and its stock soared to record heights), but it will do something that is remarkably important for the retail investor:

It will significantly raise the probability of success.

And in a game of numbers, that is what we're looking for when it comes to technological innovation.

So, let's ask the first question and learn how to identify the next technology revolution or company poised to take the world by storm.

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The Hidden, Yet Surprisingly Obvious Investing Secret of the Top 1 Percent

By , Money Morning -

It's rare when an investing secret becomes so obvious that it looks us in the eye...

And nearly all Americans completely miss it.

But one such secret has been so greatly underestimated that Nobel Prize-winning economists, investing legends and those considered to be the "best" minds in finance are now finally waking up to its possibilities--and its astonishing track record.

In fact, this secret has been one of the key drivers in the growing wealth divide between the top 1 percent and the average American worker.

It has grown more pronounced in the past three decades: the rich have gotten richer, the poor have gotten poorer, and the middle class has been increasingly marginalized.

Many believe that the ultra-wealthy have achieved their status by either being born into money or by becoming a C-level executive for a publicly traded company. But as Stanford University professor Joshua Rauh explains in a recent study, both of these assumptions are wrong.

The biggest and obvious secret to new-found, extreme wealth?

Investing in technological innovation and the expanding global scale and branding of must-have products and services.

And once you learn how to harness this trend, you'll know how to invest like the top 1 percent and can begin your path to accumulating extreme financial wealth.

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How to Invest Like Warren Buffett

By , Money Morning -

If you want to know how to invest like the best, a good place to start is with Warren Buffett.

Legendary Buffett, CEO and Chairman of Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B), first started his Buffett Associates, Ltd. in 1956 with $105,000 - mostly contributed from family and friends.

He now ranks fourth on Forbes' Richest Billionaires list, with a new worth of $53.5 billion.

Part of the reason for his success: He was never swept up in the euphoria of Wall Street crowds.

Behind the small-town-boy-turned-mogul story is a keen mathematical mind that has been honed into a highly successful stock-picking machine. Buffett began under the mentorship of the late Benjamin Graham, the father of value investing. Buffett perfected his skill through countless hours of studying annual reports of virtually every American publicly traded company over the last five decades.

Now the Oracle of Omaha's Berkshire Hathaway empire consists of some of the most recognized U.S. brands.

Buffett's "Big Four" investments - American Express Co. (NYSE: AXP), The Coca-Cola Co. (NYSE: KO), International Business Machines Corp. (NYSE: IBM) and Wells Fargo & Co. (NYSE: WFC) - represent the kind of businesses Buffett trusts his money to.

"The four companies possess marvelous businesses and are run by managers who are both talented and shareholder-oriented," Buffett wrote in his 2012 Berkshire Hathaway shareholder letter. "We much prefer owning a non-controlling but substantial portion of a wonderful business to owning 100% of a so-so business."

By taking a closer look at Buffett's career, and his favorite investments, we pinpointed three key factors to Buffett's investment formula that separate him from the common investor.

These factors, employed at key moments in Buffett's decision-making process, reveal a sophisticated formula for stock selection, as well as exploiting opportunities when other investors overreact.

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