Dividend.com Sunday Edition – Pass on The Seeds of Success for Generations

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Hi everybody. Sorry for the sporadic outages today. We ended up needing to be moved to a brand new server. Our hosting company suffered a hardware glitch and we were unable to keep the site up while this was happening. Fortunately we are now back up and I do apologize for the inconvenience. We had an eventful week that was, with earnings season kicking off. Alcoa ( AA ) did not start the quarter off on a good foot. As we got toward the end of the week, Google's ( GOOG ) results sent a lot of growth investors scampering for the exits.

The pace of deal-making continues to remain robust as numerous deals were done, but the potential for big deals are also making news. Tyco International ( TYC ) is rumored to be in the sights for a potential acquirer. Late Friday, Johnson & Johnson ( JNJ ) was rumored to be considering a deal for Swiss medical-equipment maker Synthes Inc. that could be in the $20 billion price range. Lastly, gold and silver prices have taken over the market in terms of what the pundits are focused in on. I have been mentioning it as well, but with more of a cautious tone. Silver prices especially are a concern in the short term, trading nearly 60% above the 200-day moving average. In any parabolic move we see in the markets, there is usually a reversion to the means at some point. If you are looking to get exposure to the silver or gold market, patience is likely your biggest ally at this time.

We made some changes to our recommended list this week, removing several names as we continue to position the "Best Dividend Stocks" list as best as we can with the idea that the names that remain on the list are still names we feel good about being capital into. Dividend investing does not require a special talent, education level, years of experience, luck, or much money either. It requires a commitment from you as an investor that you will keep putting money to work each month in the best ideas available. The material you find on our Dividend.com site will help you start generating a new income stream and be a key element in helping everyone build wealth.

Speaking of wealth, every generation has a chance to change the the fortunes of future generations. When you think about some of the wealth goals we have - well-funded retirement, college education for our kids (not a guarantee for future success of course, but it is still a common goal for many families), nest egg that continues to build as the years pass, and enjoy the benefits/dividends of passive income in our income-producing investments. There could be more, but these are some general goals we all share. Getting back to creating fortunes for our future generations, many of us could impact what principles are passed on to our next generations. Look at the case of Carlos Slim, considered to be the richest person in the world. His riches were influenced by the moves his father made. His father became a business owner back in 1911 when he established a dry goods store. As he built up his capital, he was able to acquire prime commercial real estate in Mexico City ten years later. The foundation was now set for the next generation to do well. By the time Carlos Slim was born in 1940, his father already was considered very successful. Now you may think Carlos was born into wealth and that equated to the success Carlos has had. As much as you can easily scrape over this generalization, when you dig in to the differences of what Carlos was able to do, you will see the lessons he learned from his dad were certainly never intended to make Carlos the richest man in the world. The key here to understand was that the seeds of success were sewn into Carlos when it came to understanding business and looking for ways to build income. Carlos Slim was an investor of stocks at an early age, but then diversified into businesses. I often talk about the entrepreneurial spirit and how it can contribute to an acceleration of one's success, as long as the approach to business is done with the proper due diligence. When you look at the generations past regarding the Slim family, his dad was able to build the foundation, but he did it on his own. There was little help from the previous generation. Every one of us has the ability to build the foundation for our future family generations, and it doesn't take a lot of money to get this under way. Having more money to start with doesn't hurt of course, but is not as much of an obstacle as one would think.

You can do your own research to prove what I am saying is true. Look around and see who is successful in your mind. Next, go up and ask them about their story and how they were able to get to the level of success they are now. You will be amazed to how far back some of the stories may go. In my case, my dad went away from his family to learn how to cut hair in a big city in Italy at age 14. He made an early decision to want to learn a trade, but he didn't stop his ambition just learning a skill. He decided to push out of his comfort zone, coming to the U.S. in 1966, getting married and opening a barbershop without even knowing how to speak english by 1968 (he was 26 years old at the time). He could have stayed in Italy and established a business there, but he felt better financial opportunities were to be had in America. He made a great bet. Over the years, he had other opportunities he could have taken regarding real estate, but he didn't pull the trigger. His best real estate opportunity came at what ended up being an inopportune time. The property he should wished he had pulled the trigger on consisted of 6 stores and 12 apartment units (it was the location of the barbershop). At the time the asking price was $300K, but he had just purchased our first family home the year earlier. Financially he was not able to do the deal on his own. He lobbied his business partner and several family members, but no one felt the need to join in on the opportunity (they all came to regret it later as well). Unfortunately for my dad's sake, no one stepped up and realized how great the real estate deal was. He never did buy his dream building/property after that missed opportunity, but he kept working hard and saved his money. I spent many a night at my family dinner table hearing that story and seeing what it means to miss an opportunity. The deal opportunity was back in 1980. Everyone could imagine what the property is worth now and the cash flow it would be throwing off today. Who knows, if he went ahead with it, I may have developed the passion for real estate and Dividend.com maybe would have never happened. As my mom would always say, things sometimes happen for a reason. As I look at my own road and what I am building with Dividend.com, the lessons I have learned are plenty.

Almost none of us are born rich, and that's ok. It's the process of becoming successful that is the part we all need to remember is the most valuable. How often do we hear about kids that are born in rich families who end up with troubled lives. This can be the result of the "auto-pilot" syndrome where kids are not required to learn about much, because their families are rich and they don't have the need to hustle. It's very sad when you see these wasted opportunities to pass on the seeds of success in a more fruitful way. Nothing is guaranteed in our lives and success/being poor is not a given as well, when you talk about one generation to the next.

The investment we all make every day to learn as much as we can to becoming successful and building wealth can pay an enormous dividend not only in our own lives, but the lives in our own family's future generations. The lessons are all around us. I'll be sure to share as many as I have learned and continue to learn.

Many of our readers truly have been understanding my message of taking charge of one's own nest egg responsibilities. We have a very pro-active subscriber base and many of you have taken charge of what happens to your money. I applaud you for that and for understanding that investing does not have to be complicated. It makes me feel really good about what we do here at Dividend.com. Everyone has the ability to generate wealth and following our strategy will allow you to get the power of compound interest behind you! Thank you for sharing part of your Sunday with me and please be sure to pass this post on to anyone you think we can get inspired and educated about money, building wealth, and using common sense to do so.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: AA , GOOG , JNJ , TYC

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