The Purpose Of Money In Wealth Creation

An American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellow fin tuna. The American complimented the Mexican on the quality of his fish and asked how long it took to catch them.

The Mexican replied "only a little while".The American then asked why didn't he stay out longer and catch more fish?The Mexican said he had enough to support his family's immediate needs.

The American then asked, "but what do you do with the rest of your time?"The Mexican fisherman said, "I sleep late, fish a little, play with my children, take siesta with my wife, Maria, stroll into the village each evening where I sip wine and play guitar with my amigos, I have a full and busy life." The American scoffed, "I am a Harvard MBA and could help you. You should spend more time fishing and with the proceeds, buy a bigger boat, and with the proceeds from the bigger boat you could buy several boats; eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor, eventually opening your own cannery.

You would control the product, processing and distribution. You would need to leave this small coastal fishing village and move to Mexico City, then LA and eventually NYC where you will run your expanding enterprise.

"The Mexican fisherman asked, "But, how long will this all take?"To which the American replied, "15-20 years.""But what then?" The American laughed and said that's the best part. "When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions.""Millions..

Then what?"The American said, "Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos." - (Anonymous)

In my opinion, the moral of this story is 3 fold.

A) Do what you love the money will take care of itself.

B) You are smart enough to make your own decisions when properly informed. Don’t blindly rely on the financial advice of so called “professionals”.

C) Each of us has our own definition of what true success and prosperity is, in 2009 make it a point to follow your plan to reach YOUR vision of success.

A Billionaires Wealth Creation Secret

Warren Buffet is a name synonymous with wealth creation and prosperity. I have mentioned the fact that this savvy entrepreneur, the second richest person in the world, has invested billions in silver and we should do likewise.

What I have not mentioned before is that the foundation of this gentleman’s wealth has been generated and is consistently generated by using a few time tested principles in investing in stocks. Mr. Buffets approach is truly simplistic and easy to follow. While many investors chase dot com stock, hi tech, medical etc. Buffets strategy is what allows him to generate consistent ongoing profits. Berkshire Hathaway, Mr. Buffets company, recently released a glimpse into his amazing portfolio of winners and if you choose you can capitalize off of his expertise.

The following are the top 10 holdings of Mr. Buffet. Mr. Buffet does not make personal recommendations but, in my opinion, knowing where he puts his own money is much better than taking a recommendation of where he may suggest we place our money. I am sure you will agree that the list below is quite logical and all companies listed have proven track records of consistent profits over the past few decades. You know know one of the secret to a billionaires wealth creation strategy

Coca-Cola (NYSE: KO)
Wells Fargo (NYSE: WFC)
American Express (NYSE: AXP)
Procter & Gamble (NYSE: PG)
Johnson & Johnson (NYSE: JNJ)
Burlington Northern Santa Fe
Wesco Financial
Moody's (NYSE: MCO)
Anheuser-Busch (NYSE: BUD)
ConocoPhillips

A Mutual Fund Alternative

My preference in investing is more geared to non conventional high return vehicles but I am aware that some of my readers may have mutual funds or may be interested in them but may not be aware of the following.

There is a unique alternative to mutual funds that consistently outperform 80-90% of the mutual funds in existence. It is called an “Index Fund”. An index fund works by matching the movement of one stock market index.

Two of the most common are the Dow Jones Industrial Index and the NASDAQ Composite Index. The Dow Jones is made up of 30 of the largest and most established companies and was created over 100 years ago. The NASDAQ is an electronic stock exchange and generally a haven for fast-moving technology stocks. The S&P 500 is another index that is often cited and has available index fund shares.To match the index, each index fund share is made up of a proportional amount of stock from each of the companies within the index it matches. An index fund also differs from mutual funds in that they aren't managed; they blindly follow the index, for better or for worse:

The formula determines which stocks to buy, whereas a mutual fund is actively managed by a money manager who decides how much of each stock to buy. An index fund significantly cuts down on the expenses with no experts to pay, and as an added bonus, an index fund will generally outperform mutual funds over the long haul. The drawback to an index fund, however, is that it is designed to exactly match the index it is based on.

This means that they are not completely safe alternatives to picking stocks. Anytime the market goes down, an index fund will almost certainly follow. Also, since an index fund matches the market, rather than trying to beat it, enormous gains are less likely. For every 80% of mutual funds that do not beat an index fund, there are always 20% that do. And those lucky and smart investors will be reaping the most rewards from a good year in stocks. However, if steady growth over the long haul with less risk is what you desire, an index fund is a hard choice to beat. If you are invested in a Mutual Fund consider contacting the Vanguard Group for information about their Index Funds at 877 662-7447

Learn From Your Mistakes & Succeed

If you could live your life backwards it would be easy to avoid mistakes. You could simply look back on the mistakes, clearly and see them coming, then move in another direction.In the real world, where time only moves forward, avoiding mistakes is not nearly so easy to do.

For the only way to completely avoid mistakes is to completely avoid taking action.But that, of course would be the biggest mistake of all. For although you would never make any mistakes, you would never move forward either, and never get anything done.

In order to accomplish anything, you have to accept the fact that you're going to make mistakes. Of course you would never set out to intentionally make a mistake, and it's wise to take reasonable precautions against them.Have the courage to move forward, to make definite decisions, to take specific actions, even though some will turn out to be mistakes. Remember, each mistake brings you closer to success.

Why Is Silver A Better Investment Than Gold?

The following is a short article based upon a review written by Jason Hommel of silverstockreport.com I felt it was worth sharing. The historic price ratio of silver to gold shows that about 10 ounces of silver would buy one ounce of gold, a 10:1 ratio. Recently, the ratio is about a 50:1 ratio (with silver at $20/oz., and gold at $1000/oz.) As the silver to gold ratio returns to historic values, from 50:1 to 10:1, you may make over 5 times more money investing in silver, than gold!

Silver prices may rise to exceed the 10:1 ratio, for the following reasons:
More than all of the silver produced by the mines each year is consumed by industry, which leaves little to no room for investment demand. A marginal increase in investment demand will drive prices sky high.

Most silver is produced as a by-product of mining gold, copper, zinc, or lead. Higher silver prices might not substantially increase the amount of silver mined each year. In 1980, when silver prices went up to $50/oz., less silver was mined than in 1979!

Additionally, as paper money continues to falter, people will buy silver and gold without regard to price!

Each year, silver mines produce about 650 million ounces of silver. 200 million ounces come from recycling and about 100 million ounces come from investor or government sales. Of that total:
• about 42% is consumed by industrial use
• about 28% consumed by jewelry
• about 20% consumed by photography
• about 5% consumed in coins and medallions

That's 95% of total available silver each year! This implies either a "surplus", or "investment demand", of about 5% total. At $20/oz., that's only $1 billion per year of net investment demand. Since the 1950's, silver use and consumption, has made silver more rare than gold, in above ground, refined and deliverable forms. Estimates suggest there are 200-300 million ounces of refined, above ground silver available to the market at the present time. There are about 125 million ounces of silver at the NYMEX, the big commodity exchange in New York. The ETF SLV has about 180 million ounces.

Each silver contract at the NYMEX is a promise. There are too many contracts, too many promises to deliver silver that may not exist. Each contract is for 5000 ounces. There are often over 200,000 contracts for 5000 ounces, that's a total of 1000 million ounces of silver promised to be delivered. With recent market trends of defaults and bankruptcies, these contracts are at risk of default. Yet the exchange has only about a third of that in real silver. How can they promise to deliver more silver than exists? If they fail to deliver silver, then confidence in the world's entire financial system may collapse. Industrial users of silver may have to shut down their factories. To prevent this, users will bid silver prices much higher.

Due to the risk of default in silver futures contracts, I suggest that you avoid buying futures contracts, avoid options, and avoid storing your silver with anyone else! Take delivery of your silver, and put your silver in your own safe!

Over 100 years of this "demonetization" has caused a serious drop in silver's value, and this trend is about to be reversed as investors re-learn that silver is a great store of value because of its intrinsic properties.

As paper money continues to waver, the neglect of silver's use as money will end. Once again, silver will be valued based on other measures of value, such as a day's wage, or a ratio to gold.

What Is Elements To Wealth?

Elements To Wealth has a two fold meaning. First it is the name of the paid membership program I manage and developed over the past few years. The company was originally called Pmelements hence our primary domain name pmelements.com. The original intent was to provide precious metals to consumers along with a referral marketing opportunity. Pmelements was founded in 2003 by Jeff Charlton. I came on board in 2006 first as a distributor then as an MLM Consultant and finally I purchased the company in lSeptember 2006 and changed the name to "Elements To Wealth".

This blog is the next progression of the company, rather than restrict information to paid members I decided to share information with anyone willing to listen to help them along the way towards experiencing the Elements To Wealth at no cost.

The second meaning of Elements To Wealth is the movement and mission towards identifying, understanding, implementing and experiencing the things one would generally associate with being wealthy. The 7 core Elements That Will lead to wealth are:

1) MONEY- Understanding what REAL Money is, how to get it keep it and leverage it.
2) HEALTH- all the money in the world is useless wtihout your health.
3) TIME- A huge advantage the wealthy have is more time to do what they want to do when they want to do it.
4) ASSOCIATIONS- having direct access to professionals for key areas of acquiring, maintaining and growing wealth is crucial to ones attainment and maintainment of wealth.
5) EDUCATION- A truly wealth person never stops learning new ways to grow, preserve and diversify their wealth into other ventures.
6) GIVING- The Greatest Money Making Secret in History is how the act of giving
what you want to receive will provide an effortless flow of exactly what you want to seek you out. Whether it be money, time or knowledge a key to creating perpetual wealth is giving.
be creating valuable content for those attracted to the Elements To Wealth.
7) SPIRITUAL GROWTH- Understanding, study and education about your creator and your eternal destiny are crucial towards wealth creation. Deuteronomy 8:18 makes this
quite clear.

These are the foundational principles of the Elements To Wealth. There are many other areas that have their role. If you are open to learning, sharing and contributing towards the attainment of the Elements To Wealth then I am confident you will enjoy the information on this blog.

Thanks for stopping by.
Owen Brown
3 John II