Zero 2 Rich

Investing to One Million Dollars or Bust!


I originally learned of the Dogs Of The Dow strategy from my father in law who was playing with it at the time.
The idea for the Dogs Of The Dow strategy was put forth by Michael O’Higgins in his book Beating The Dow. The strategy is to invest equal amounts in the 10 highest yielding stocks on the Dow Jones index. These top 10 yielding stocks are referred to as the Dogs Of The Dow. The idea is to buy low and sell high. That the 10 stocks with highest yields have dropped in price. But it also relies on the idea that all of the companies in the Dow Jones index are strong companies, and strong enough to survive the down times. You hold the stocks for one year, and then sell the stocks that are no longer part of the Dogs Of The Dow, and buy the new dogs.
There are a bunch of variations of the Dogs Of The Dow strategy. For instance you can buy 9 of the top 10 yielding stocks, not buy the top most yielding stock. The top most yielding stock is often a very trouble company. Another variation is to buy the five lowest priced stocks of the Dogs Of The Dow. This is called the Small Dogs Of The Dow. Motley Fool put forth a variation called the Foolish Four. They have since admitted that it didn’t work as well as they though in the long run.
People are always looking for simple stock picking ideas that don’t require the work of stock research. The problem with ideas like this is that people start using the idea to pick the stocks. When enough people follow the strategy it affects the price of the stocks, and messes up the whole thing. Keep in mind almost any stock picking strategy works in a strong bull market!
I played with the Dogs Of The Dow briefly, and then dropped the strategy.

I originally bought the Citibank stock when I was playing with the Dogs Of The Dow strategy. When I decided not to follow that strategy anymore, I sold off the Citibank stock. But shortly afterward I got a dividend which was reinvested, and I now owned this little tiny fraction of a share of Citibank stock. It was only worth a couple of bucks. And it has been sitting in my account ever since. It was worthless than the transaction cost to sell it. But I get two free transactions a month, so this month I decided to use one of them to sell that little bit of Citibank stock to get it off my books!

Warren Buffett announce that he will start giving away 85% of his fortune to charity starting in July 2006. Warren Buffett’s is currently the second richest man in the world, and his holdings are worth $44 billion! He said he plans to give the money to five charitible foundations, with most of it going to the Bill & Melinda Gates Foundation. The remaining donations with go to foundations headed by Buffett’s three children, Susan, Howard, and Peter, and to the Susan Thompson Buffett Foundation (named after Buffett’s late wife).
Buffett has always said he would give his money to philanthropy. But he said it would happen upon his death. Apparently he has changed his mind.

I saw a brief commercial on the TV this morning for a website That domain name reminds me a lot of the domain name for another commercial I saw weeks ago. Related?
The domain seems to belong to a place called Home Business Connection. A search on the name “Home Business Connection” brought up another website Same guys?

On the web site they want to you to complete a survey, and they will hook you up with 5 home businesses. The questions are very similar to the ones I answered on the web site.

A DNS lookup showed that was registered by Diamond Media, and that was registered by Cutting Edge Media? Related? Diamonds are often used for cutting edges…

People are alway looking for ways to make money. They search Google with search terms like “make money fast at home”, “make money at home idea”, “make money at home internet”, and “make money fast from home”.
Making money online is easy. I am talking real money! It just takes time. The more time you invest, the more money you will make. As they say, Time Is Money. People waste time like it is worthless. But time is your most valuable resource! The time you spend watching TV, or playing video games could be spent making money.
There are different ways to make money. You can work a job, and get paid a fixed amount for an hour. That kind of sucks! You work an hour, and you get paid for it once, and that is it.
You could start your business selling something. eBay is a great opportunity for this. Many people have started their home based business buying and selling stuff on eBay. They go to garage sales, auctions, thrift stores buying stuff, then re-selling it on eBay. This takes time to learn about a niche. You need to learn about a particular type of product that you can find cheap, and that you can sell for more online. But the limitation of this is that you can only sell an item once.
Another way is to do work and have it continue making money over time. You need to find opportunities to invest your time so that you will continue to get paid for it. The internet is great for this. Here are the steps to set up a website that will make money:
1. Think about the things that you know something about.
2. Now find which of these have decent paying advertising opportunities.
3. Find which of these gets decent traffic
4. Find which ones have limited competition on the internet.
5. Build a website based on the best topic.
6. Spend your time creating original content.
7. Make money.
8. Repeat.
First, you should pick something that you know about. Maybe make a list of your hobbies, and the stuff you do on your job. Research how much each pays in advertising. Advertising for something like Home Mortgages would likely pay more than advertising for something like Book Reviews. But if you don’t know anything about Home Mortgages, it is hard to write about them.
If you pick a topic like Golf, you might find it pays well in advertising. You will find that it gets a ton of traffic. But you will find there are a ton of websites about golf. Narrow the topic. How about left handed golf. Or how about golf courses in the Caribbean. Do these narrowed topics still get traffic? You don’t need a ton of traffic, just decent CONSISTANT traffic.
Now start writing. Content is king! The more content you have on your website, the money it will likely make. If you write an article about golfing on a particular course on St. Thomas, and put it online, it may continue to make you money for years. Just a little bit of money, but it adds up over time. The faster you write QUALITY CONTENT, the faster you will make money. Once your site gets imbedded in the search engines, you will start making money. Continue to improve your site. Make it more search engine friendly. Work to get more links to your site. Build new and different sites. Learn how to make more money from your sites. Continue to improve. The money come faster and faster!
So instead of sitting watching TV, think about what you can be doing to make money. Any time you waste cannot be retrieved. Try to do a little bit EVERY DAY to improve your money making potential.

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