This company manufactures this
popular stuff. Demand is expanding at
15% annually, which has become troublesome because their one factory will max
out next year. Rather than lose sales to
the competition, the CEO is hustling to build another one. Problem is, you can’t add little plants as
you go along, giving you 15% more product every year. You have to build a great big one, and in
financing that, the balance sheet gets stretched way beyond manageable.
Minute that facility is
up, the now-vulnerable company’s got one factory operating at full capacity and a new
one at only 15%. Prospects look great,
but the financials are a mess. Sales
flat out have to increase by the projected rates or the debt service can’t be
met. If the obligation to the
bondholders who put up the money for the new plant isn’t covered, outfit goes
down faster than the proverbial Titanic.
Problem is, the small
investor doesn’t provide for this.
Hapless investment clubbers and them bumble through life blissfully thinking
stock market success is all about the 15%.
Or 20%, 50%. Whatever their
little hearts are set on. Poor bast#rds
don’t get told what happens next in this sordid tale of wealth
redistribution. Not by the Wall Street
Crime Families, they don’t, or the media those unscrupulous mobsters keep manipulating.
Thing is, what happens next in this particular tale of ours only happens maybe
once a century, more if today’s Democrats keep winning national elections. Market crashes and demand gets chopped off at
the knees.
Company’s sales plunge
precipitously, and their assets get sold to pay off those bondholders, leaving
zilch for equity. Investment clubbers
and them lose every dime.
It’s called chasing
growth, subscribers, and it’s the dumbest bet on Wall Street, shifting entire
fortunes from your pockets to theirs maybe once a century or so as basically every
freaking “story” stock gets shot down in flames. Oh, that product keeps getting produced,
often by the same folks who lost all your money for you. Usually, the thieves just start going under
newly defined ownership, simply replacing yours in what the 1% have reason to call a "justice" system and we don't.
Destructionist negro
politics, bent on arrogantly supporting an indolent class of idle poor with
Government largess, coupled with an inexplicable free money policy over at the Commie Fed, has clearly brought this economy to the brink of another
catastrophic market crash, the kind that toppled every dumbass “growth stock”
back in 1929.
DO
NOT ASSUME GROWTH RISK AS LONG AS THE DEMOCRATS REMAIN IN POWER, people. MacDougal estimates that there are no more
than 150 actual investments out there today, and he’s culled his own personal
universe down to something like 85.
Other investors with local knowledge can come up with regional names
increasing the size of that list, but finding local investment managers you can
trust is an issue in itself.
The
1929 Crash happened. It’s likeness will
devastate family wealth again. MacDougal
begs you once again to pour your wherewithal into the bluest of blue chips. The growth trap cannot ensnare investors
seeking conservative single digit rates offered by today’s A-List large
caps. You’ll survive if you’re in the right names.
The
smartest investors MacDougal ever met adopted the bluest strategy
permanently, feeling, as one put it, you never know when the wolf is at the
door. At least heed their warning now. Protect you and yours from the monsters who
are slowly, but steadily, shutting this nation down.
Please. The 1929 alternative is an awful thing to ponder.
