Business Ownership and Wealth Management

Dana Barfield

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Invest at Bargain Basement Prices!

There are only two things you can buy at unusual discounts these days: A new car and stocks

Wealth Management on Ulitzer

On February 27, 2009 I wrote these words in an article entitled "Are Things Improving?"

"6) There are only two things you can buy at unusual discounts these days: A new car and stocks. These prices are beginning to attract takers. If things were as dire as CNBC said, all other stuff would be cheaper".

"7) As the companies we own have reported earnings, most of them have beaten expectations. In other words, the businesses continue to perform even though the stock prices are not. What you own continues to become more valuable. Over the next 5 years, the prices of these stocks will reflect that increase in value. Patience is how we will capture it".

At the time I spoke of stock prices at the end of February and beginning of March as once in a life time opportunities.  Look at this chart of Nike and what you see is that the price in late February is the same price Nike was at 5 years earlier.  Equally as important, the price has recovered nicely.  We purchased NKE between February 9 and March 9 at prices between $38.67 and $47.70.  Less than a year later it's at $65 and change.

Here's what's important about that:
  1. Sound judgement is a necessity to successful investing.  Make sure that your advisor has it and consistently demonstrates it.
  2. The best time to make investments in quality companies is when most people are scared stiff.
  3. Invest at the right time and better than average returns are possible.
  4. Risk is reduced when you make investments at lower prices.

Can you benefit from this kind of management? 

Read the original blog entry...

More Stories By Dana Barfield

Dana is the president of The Barfield Group, which has provided industry leading Financial Advice, Investment Services, and helped people Plan for Retirement for more than 20 years. He is a frequent speaker and writer for a variety of industry, regional, and national publications on business ownership and wealth building related topics.