An assets ability to earn profits or store value is what will give it value.  Stop and think about that.... the business (an asset) has to be able to earn a profit or have promise to earn profit to have value today.  The bond needs to be able to pay interest over the years and be able to pay back the lender when it matures for it to have value today.  The house needs to be able to have someone paying rent to the owner or the owner will be stuck paying the taxes and bills associated with owning a home. Unless an alchemist figures out how to turn lead into gold, gold will always be limited in supply and always, like it always has, store value.

Being the receiver of profits and income is the point of owning income producing assets.  Corporations are in business for the sole purpose of earning an income.  A determination was made that there is a market of a good or service.  Many entrepranuers will stake their claim to supply those needs or wants and start a business. The businesses that meet those needs or wants with the best products or services most efficiently will reap the most profits for doing so.  Owners will be rewarded with high returns on investment for doing so.

Price is what you pay and value is what you get.  Transfering cash into an asset is done so because you believe the asset will produce enough income over the years to make it a more attractive place to invest than say a CD or high quality bond, or putting your cash under the matress.

These principles are taught throughout my book and in my class.  Take a look at my class and be sure to download the stock analysis worksheet to help you make investment decisions. 
This site teaches you how to make intelligent investment decisions.  The key principal emphasizes Value Investing, which is especially useful in today’s extremely difficult times.
The Investment Value Philosophy

Disclosure:   This is not a means to solicit any of the securities mentioned nor does it recommend it for any person before they speak with a licensed professional investment advisor for their own suitability.  Investing in Equities bears risk of capital loss.  This is strictly the opinion of Jason Tillberg, President and founder of Tillberg Capital Management, Inc. and shall not be held responsible for investment loss from this writeup.
March 2009
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May 2009