The Perfect Income Investment
John D. Rockefeller was once the richest man in the world simply by collecting dividends from his investment in Standard Oil. Today all astute investors understand that Income is the most important investment to help them support their lifestyle and retirement without having to deplete their life savings and assets. Obviously, 100% perfection and certainty does not exist in the investment world today. But there are proven ways the wealthiest 2% in the world can secure a margin of safety and achieve superior income investment results.
If you want the greatest possible success in an income investment like the wealthiest 2% in the world, you will have to find an investment opportunity that meets amble amounts of these six basic criteria:
1. High Rate of return: A rate of return that outperforms inflation, taxes and other investment alternatives; a cheap enough price for a valuable business or asset containing the potential for higher returns. This means you need an income investment that averages between 15%-24% per annum.
2. No stock market risk: A cash flow business with high profit margins that can pay you a guaranteed contractual preferred income annually without concerns of market volatility and/or the stock price dropping in value. You want to protect your capital investment as well as secure above-average income.
3. Recession Proof Growth Industry:A business sector in our global economy that is a major, long term mega trend with profitable niche markets. There are market sectors that prosper in every phase of the economic cycle of boom, bust and recovery. For you to receive a steady, consistent stream of above-average income every year, a recession proof industry is an extremely important requirement.
4. Complete safety: Proven businesses with high profit margins and no debt are critical to insure long term success. Without the burden of debt, growth companies are able to prosper and expand market penetration in down markets, fund research and innovations to keep them ahead of competition, and consistently pay above-average increasing income dividends to investors. Debt is the number one enemy of wealth and reduces the amount of income a company can pay in income dividends. We favor companies with no long debt that have a track record of paying increasing annual income returns.
5. Total passivity: No special knowledge or active management would be required to make the investment. You want to receive peace of mind dividends like John D. Rockefeller, the richest man in the world in his time, with no worries and complete peace of mind. Once you make the income investment, your only responsibility should be to collect above-average income.
6. Margin of safety: We believe this criterion provides a risk-reward ratio in favor of the investor which is what the wealthiest 2% demand to protect wealth and grow richer. You have to very selective, as we are, in your evaluation of income producing investments. The first rule of investing is always not to lose money. You achieve that success by diversifying your investment portfolio to reduce risk and maximize returns. Only invest in companies with a proven business plan and a high degree of certainty and probability to pay you above-average income from increasing revenues and earnings.
