Volume 31, Number 2

Investing 101

You’ll need to own stocks. And pick 
the right ones. Look for stocks
with good earnings potential and low 
PE ratios. PEGs at or near 1. Pick companies 
you know something about. Maybe a new 
national food chain that has the best produce 
and meat. Maybe a corporation with cars that run 
without fuel. Or a biotech company, with a new 
patented drug, that can charge a good price. Cuba 
was discovered by Columbus in 1492 and first colonized 
by Spain. It was under US influence until 1960 
when it became a republic. Its minimum monthly wage 
is 225 Cuban pesos, about $9 US. You'll need to 
own bonds. Choose bonds with high credit ratings. 
Diversify by picking bonds of different duration. 
Perhaps low-cost mutual funds that have historically 
done well. When you’re young, you might go 90% stocks
and 10% bonds. Tanzania is a republic and the largest 
country in East Africa. It exports cotton, sisal, tea 
and coffee. It consists of 120 ethnic groups. 
Tanzania’s minimum monthly wage, depending 
upon the economic sector, is 40,000 Tanzanian shillings. 
About $17 US. Then there’s real estate.  Particularly 
commercial real estate and residential rental properties. 
You’ll want to put little or no money down. Leverage 
is key. If you put 10% down, and the property goes up 
10%, you’ve doubled your money. You’ll get lots 
of tax breaks. The daily minimum wage in Mexico 
is 123 pesos, about $6 US. Eleven million people 
live on it. Own precious metals. For inflation 
protection. Gold’s the best. And keep some of 
your assets in cash. To ride out economic storms. 
Did you know the 15 wealthiest individuals in the world 
have more wealth than the poorest 85 countries 
combined? If you start early, and invest wisely, 
you could be a millionaire while you’re still 
in your 30s. Then you can buy a villa on the ocean, 
in a poor country, with 5 full-time servants. 
They can live in the guest house. Be sure 
to treat them kindly.

—Gil Hoy