The Motley Fool’s pose as the “fools” who point out the foibles of the “wise” (those in power) is entertaining, but in this book they fail to point out the Emperor’s biggest invisible “garment” — capital gains.
So of all the things that I might have said about investing, I haven’t really made it sound ‘sexy’ yet. Have I? The truth is, investing isn’t really very sexy. Pop stars are sexy. Carmen Electra is sexy. Investing is graphs, moving averages, Printers, company statements, calculators and work. Not so sexy. It’s kind of like being an accountant but with marginally more life and a few graphs.
How many years until commercialisation and what’s the probability of commercialisation? Have a read through the company annnual report to work out a timeline and the business plan for the organisation. What’s the potential market once commercialisation has been achieved? What P/E ratios are potential competitors or similar companies trading at? What type of return can you hope for based on those valuations?
The technique of adding seasoned trade lines consists of having a person with a revolving line of credit (credit card) add you as a personal user to their account. When the credit card company reports to the credit bureaus the next time (they report every month), it will show that you now have that line as well. This trade line showing on your account now increases your credit score (sometimes dramatically).
Will you need assistance with transportation, cooking, laundry, bathing or dressing? If these scenarios did occur, how would you pay for the services you may need?
The final problem with photos and images in the body of your appeal letters is that they make your letters look like they are being mass-mailed to thousands. Which they are, of course. But you must avoid emphasizing that. A “Dear Friend” letter filled with photos and signed by a committee looks impersonal. But a “Dear Alan” letter with no photos, signed by someone I admire and trust, looks personal.