Growing Rich - Arabictrader.com

GROWING RICH WITH GROWTH STOCKS
you’re running an insurance company and make an investment, you’re
not buying a steel mill or an auto plant, nor are you doing a lot of
research and development on a drug that may never see the light of
day. You aren’t hunting for oil or producing a depleting asset. What
are you doing with your money? You’re investing it, mostly in
mortgages and bonds. Sometimes these companies stray into tanker
loans, Third World debt, leveraged buyout loans, and such. Sometimes
they lose their shirts on these deals. But successful insurance companies
have the fundamentals right. They’ve managed the investment
side of the house as well as the operating side, and when both work
in harmony, you make a lot of money. If the insurer’s investment
department has any brains at all, it has positive cash flow and is, in
effect, compounding money on money.”
LOOKING AHEAD
Looking to the next century, Davis predicts that the drug companies,
especially those involved in gene and cell-based research, will be
among the major beneficiaries of an aging population. “These biotechnology
folks are searching for genes and cells that work in the body
to alter disease development,” he says. “It involves understanding
which genes and cells fight off certain diseases and then introducing
those cells into the body to multiply. It’s like the good-guy Pac Man’s
eating the bad guys. This is a whole new dimension to finding cures
and preventing problems. I think it’s a long-term theme that will make
many investors rich.”
He’s also excited about the opportunities equity investors are being
presented with as we enter the twenty-first century. “I believe investing
is the most exciting business in the world because it doesn’t limit
you to one industry,” he says. “I have great faith in this country, in
the fundamental soundness of our economy, and in our people who
have come here from all over the globe to start businesses and make
their fortunes. This is what makes great companies and great investment
opportunities.”
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