Growing Rich - Arabictrader.com

GROWING RICH WITH GROWTH STOCKS
can get both options and enormous salaries, enabling them to become
rich in less than three years. Additionally, you have special talents
in the business world. Bill Gates has made more money than anyone
in the United States, and he started with nothing, not even a college
degree. All kinds of people in California have made fortunes in five
years or less in technology. Smarts are now as much of an asset as
soft paper and stock certificates were relative to hard money decades
ago. It’s hard for people to equate this asset to real money. A bond
that matures in 30 years is not cash, although one maturing in a
month is. The same thing’s true here. These storehouses of value I
just mentioned are not cash today, but they will be. When you look
at the first Forbes 400 list in 1984, you find that most of the top ten
people on the list had inherited their wealth. Today, that’s true of
only one of the top ten. The rest are self-made. We live in a different
society. Those who don’t adjust to that will be left in the dust.”
SOME THINGS STAY THE SAME
That’s not to say that certain aspects of history won’t ever be repeated.
To the contrary, Papp is convinced that we will have more
bear markets, though he doubts we’ll have more crashes, or “financial
accidents” as he calls them, like the one in 1987. “I think one of the
major ingredients that caused that event was Congress passing a bill
in late July eliminating the investment tax credit. They went back
and instituted it retroactive to January first,” he offers. “Consequently,
earnings were revised way down, meaning the stock market was
trading at 23 times earnings. That was unheard of. People panicked,
not realizing that tax rates for corporations would go down significantly
the following year to compensate for this. You also had the
media out scaring people. They were on the tube the day of the crash
telling people it’s 1929 all over again. The media accidentally messed
people up badly. They have become much more conscientious since
then. When the Gulf War started, they discussed why the market
dropped and that it was just a short-term event. For the most part,
the same thing happened during the 1998 correction. They have also
taught everybody that stocks aren’t a dirty word, while informing the
public that buying bonds is not as safe as they might believe.”
159