Investment Tips

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Investment Tips

• By
• Johnny

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Changing of the GuardJanuary 31, 2006
Alan Greenspan Born March 6, 1926 in New York
City B.S. (1948), M.A. (1950) Ph.D. (1957)
all in Economics all from NYU
Dr. Ben S. Bernanke Born December 13, 1953 in
Augusta, Georgia B.A. Economics Harvard
1975 Ph.D. Economics MIT 1979
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Current Wall Street jargon
He will make speeches in the future at 150,000
per speech
Alan Greenspans current annual salary is 180,100
From Time magazine 1/30/06
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Mad Moneys Jim Cramer

• The honey of money

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The Power of Income Averaging

• Pick a company you believe will not fail
• Use the same amount to purchase stock on each
  major dip
• Stop buying when it stops falling lower
• Example 100 of AMR on dips below 25

1 at 20
2 at 10
3 at 5
4 at 2
5 at 1
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The Power of Income Averaging

• 1 20 x 5 sh 100
• 2 10 x 10 sh100
• 3 5 x 20 sh 100
• 4 2 x 50 sh 100
• 5 1 X 100 sh100
• Total 185 shares for 500 or 2.70/share
• Current value 185 sh _at_ 20.18 3733.30

1 at 20
2 at 10
3 at 5
4 at 2
5 at 1
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Buying Stock at a Bargain!

• Total profit for AMR is 3733.30 - 500
  3233.30
• But also remember, in the meantime, Delta and
  Northwest went bankrupt!!
• So never invest more than you can afford to lose.