Kevin,
Thank you for sharing your thoughts with me.
I am self emplyed. I own a couple of busines's. My bread and butter comes from manufactuering printed circuit boards that I supply to manufactueres of home appliance in Europe. Profit after tax is very poor, due to cost of manpower, taxes and competition. In early 1992 I began moving manufactuering facilities to former East Block, it imporved some, but created other problem. The only source of good income has been the stock market. We are not subject to pay
any capital gain tax, or taxes for div. or coupons on US equities.
My investments are as folows:
1. Rental property. 60%.The rents are barely sufficent to cover the taxes and maintenecne expenses. we look at net return of 1.5% per year. Capital apprecaiton, 15 to 20% per year for choice propperty and 8 to 10% for more commercail.
2. Bonds, 30%
Bonds are in three currency, US DOllar, Italian Lire, Deutch Mark and Swiss Francs. I am not keen on AAA bonds.I have 50% invested in AAA and 50% on BB bonds, such as Brazil,Argenina, Israel Bond (yields 15% on Lit. 10% on USD,9.5% in Deutch Mark, etc.) So I use bonds as a means of income, and sink the div. into US stock market.
3. . Stock market. 20%
a. US Stocks. 80%:
60% blue chips: KO, GE, MERCK. SGP,MAC,JNJ, Pfizer,HP, Chevron
Being,G,DIS,Royal Dutch, Amaco, Mobil,Exxon, IBM,Ericy,Lucent etc.
30% Hi TEch: INTC, SCSO, ERICY,MSFT,(very samll portion in NOVL and RACE.)
Swiss Stocks. 20%: NeslŠ.
This is my fixed portfoglio. I do not trade with it, I add to it when I can, but I watch it. For example I owned AT&T and six months after it spinned of Lucent, I sold them, kept Lucent.
To creat extra income, I trade on daily basis, buying and selling with two to three dolalrs margin. To do so, I borough against my
portfoglio, and I have an agreemnt where they wait 5 working days to start applying debitor. Noramlly I have sold in 48 hours. If it donesn't go for five weeks, then I keep them. The stock
that I trade with are the same as in my fixed portfoglio, so if
I keep them, they are worth keeping. Since we do not pay tax on cap. gain, nor on div. with non swiss securties, the margin between what I buy or sell is net profit. To run this smmothly,
I have access toReuter in my office, and try to count on good
advice and flow of info through to SI threads, and other web-sites.
Kind regards,
Yaacov
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