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2009 investment focus
I have decided to narrow my investment focus for 2009 because there are just to many opportunities out there and I am having trouble focusing. Because I am sixty years young and want faster returns then I would seek if I was 40 again, I have set my goals for one year and five years.
Stocks; look for a 20% return for 2009 buying stocks in companies with strong balance sheets and low P/E's
For example;
Arch capital P/E 7
Hess P/E 5
Manpower P/E 7
Center point energy P/E 10
Omenicell P/E 14
Cisco P/E 12
Cat P/E 7
LVS P/E n/a
Alcoa P/E 4.5
Dell P/E 7.67
Harley P/E 4.4
Royal Caribbean P/E 3.8
Forest labs P/E 7.89
International paper P/E 5.67
Ralph Lauren P/E 8.8
All these are on my list and I will pick a few of these stocks and go in for about $25,000 total portfolio. I will look at the companies balance sheets for a strong cash position, a history of profitability, a low P/E and a stock price down 50% from last years highs. That should give me a good chance to see 20% to 30% returns in one year. A history of paying dividends will be a clincher.
Real Estate: This is my preferred investment because you can directly effect value by what you do.
I will look for a property that will support manufactured houses. I want to buy used mobile homes cheap and rent them out for monthly cash flow. I have set the goals as follows.
Per house lot cost; $6.000 - $8,000 at move in state
Per house cost, $8,000 or less at ready to move in stage.
Total per rent-able unit cost at a three year payout.
This means that if the rent is $600 per month the total cost per house can not exceed $21,600 At this rate I can have ten or so rent able units, all paid for with in six years, for a monthly gross income of $7,500
I should be able to net $4,000 per month after operating cost.
Businesses: The rest of my goals have to do with selling off my other businesses and real estate to insure a retirement income of $120,000 per year. I won't really retire, not my style, but the income needs to be more passive. That is where I am headed and I will keep you'll posted on progress.
Recent blog posts
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- Why Real Estate is still a good investment.
- Self directed Roth IRA
- Contour Property ready for re-hab
- Added some after pictures
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- Evaluation work sheet
- New Years Resolutions
- Lenders Wanted, Or where to get the money?
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