The Future of Investing (Part I)

From a Forbes article by Steve Denning we learn that a study by Deloitte’s Center for the Edge shows the rates of return on assets and on invested capital for 20,000 US firms from 1965 to 2011.
Economy-wide Return on Invested Capital
The graphic shows that something has gone so terribly wrong with the type of businesses supported by Wall Street—the supposed engine of economic growth and the supposed creators of jobs. When these firms have rates of return on assets or on invested capital of, on average, just over one percent, we have a catastrophe on our hands. An ROA of just over one percent means that firms are dying faster and faster: the life expectancy of firms in the Fortune 500 is now less than fifteen years and declining rapidly.
Now, let’s look at the market’s 10 best stocks over the past 10 years, according to The Motley Fool:
Company [year founded] Return, 2005-2015 Market Cap in 2005
Regeneron Pharmaceuticals [1988] (NASDAQ:REGN) 8,113% $513 million
Keurig Green Mountain [1981] (NASDAQ: GMCR) 6,065% $179 million
Medivation [2004] (NASDAQ: MDVN) 5,516% $41 million
Priceline Group [1997] (NASDAQ:PCLN) 4,781% $917 million
Netflix [1997] (NASDAQ: NFLX) 4,718% $646 million
Monster Beverage [1935] (NASDAQ: MNST) 3,770% $397 million
Opko Health [1991] (NYSE: OPK) 3,722% $5.7 million
Illumina [1998] (NASDAQ: ILMN) 3,653% $361 million
NewMarket [1887] (NYSE: NEU) 3,648% $338 million
Pharmacyclics [1991] (NASDAQ: PCYC) 3,468% $142 million
One thing that really stands out among these 10 companies is that every single one of these stocks had a market capitalization of less than $1 billion a decade ago. You have to go down to No. 12 on this list to find behemoth Apple (NASDAQ: AAPL)  as an exception to this general rule. What investors can learn from that is that if you expect to get truly life-changing returns from stocks, you can’t expect to find them in the biggest, most prominent and well-known companies in the market. Instead, you have to dig deeper and take a look at parts of the market that many Wall Street analysts leave untouched — small companies that often take some digging just to find out what they actually do, let alone what their potential is for future growth.

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The Good Jobs Forum

WinCo Supermarket employee Cathy Burch, 42, here with her husband Kevin. In her 23 years at WinCo, she has worked a variety of front-line jobs including checker, shelf stocker, and inventory order.

Millionaire WinCo employee Cathy Burch

Most Americans in her situation have either no savings at all or an account such as a 401k containing less than $50,000, but Cathy owns almost a $1 million in stock.
At the Good Jobs Forum we will show you how to help bring high quality jobs to Lower Westchester and the North Bronx.
The Good Jobs Forum, Place, Date and Time: TBA

Local Dollars, Local Sense by Michael Shuman

If you don’t want poverty in your community, your businesses must pay living wages with decent benefits. And if you don’t want polluted air, water, and land, your businesses must behave in environmentally sustainable ways.

For this reason, we are developing the Millionaire Healthy Living Business Development Company (BDC) that will prioritize spreading and replicating local business models with outstanding labor and environmental practices in the Metro New York area. As explained in Investing Answers:

BDCs are similar to venture capital (VC) or private equity (PE) funds since they provide investors with a way to invest in small companies and participate in the sale of those investments. However, VC and PE funds are often closed to all but wealthy investors. BDCs, on the other hand, allow anyone who purchases a share to participate in this market.

Millionaire Healthy Living Business Development Company

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Moving Toward a Gigabit New York

Gigabit Neighborhood

Women't Government Contracting ForumSaturday, May 16th, 2015, 2pm at Larchmont Public Library we held the Women’s Government Contracting Forum.
Our next forum will be based on a recent forum in New Haven called “Moving Toward a Gigabit State.”
CT Giga

Click to view video of “Moving Toward a Gigabit State.”

A collaboration of Connecticut municipalities has solicited proposals from potential Internet service provider partners to create gigabit speed fiber networks across Connecticut: http://www.ct.gov/broadband/site/default.asp
The Gigabit New York forum will also address the future of mobile phones systems (see 52 second video below).

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I-CAMP Creating Gods

People ask for God, ’till the day he comes
See God’s face – turn around and run
God sees the face of a man
Shaking his head, says “he’ll never understand”
“Understand”
The Roots featuring Dice Raw and Greg Porn

Mitsuru Kawai started working at Toyota Motor Corp. in 1963, in April he was promoted to the post of senior managing officer, the highest position ever held by a blue-collar worker in Toyota’s eight decades.
“When I joined, Toyota had two plants, producing just 300,000 vehicles a year. Last year it made 10 million vehicles. I got to witness that entire evolution,” Kawai said. “I’m one lucky man.”
Mitsuru Kawai

Mitsuru Kawai, senior managing officer at Toyota Motor Corp., poses in the forging department at one of the automaker’s plants in Toyota, Aichi Prefecture. | BLOOMBERG

“When I was a novice, experienced masters used to be called gods, and they could make anything.”

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Small-Scale Farmers Cool The Planet

Small-scale farmers cool the planetCompared to large-scale industrial farms, small-scale agroecological farms not only use fewer fossil fuel-based fertilizer inputs and emit less Greenhouse gases (GHGs), including methane, nitrous oxide and carbon dioxide (CO2), but they also have the potential to actually reverse climate change by sequestering CO2 from the air into the soil year after year. According to the Rodale Institute, small-scale farmers and pastoralists could sequester more than 100% of current annual CO2 emissions with a switch to widely available, safe and inexpensive agroecological management practices that emphasize diversity, traditional knowledge, agroforestry, landscape complexity, and water and soil management techniques, including cover cropping, composting and water harvesting.

Small-scale farmersImportantly, agroecology can not only sequester upwards of 7,000 pounds of CO2 per acre per year, but it can actually boosts crop yields. In fact, recent studies by GRAIN (www.grain.org) demonstrate that small-scale farmers already feed the majority of the world with less than a quarter of all farmland. Addressing climate change on the farm can not only tackle the challenging task of agriculture-generated GHGs, but it can also produce more food with fewer fossil fuels. In other words, as the ETC Group (www.etcgroup.org) has highlighted, industrial agriculture uses 70% of the world’s agricultural resources to produce just 30% of the global food supply, while small-scale farmers provide 70% of the global food supply while using only 30% of agricultural resources.

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Getting Started In Government Contracting

Govt-Contracting-I

The United States Government is the world’s largest purchaser of goods and services. Every year, the federal government awards more than $500 billion in contracts, and a significant share of those contracts are specifically allotted to small businesses.

The Small Business Administration works with agencies to award at least 23 percent of all prime government contracts to small businesses, with specific statutory goals for small business, small disadvantage businesses (SDB), businesses that are women-owned (WOSB) or service-disabled veteran-owned (SDVOSB), and businesses that are located in historically underutilized business zones (HUBZone firms).

Steps to Procurring a Government Contract
1. Identify your DUNS (Data Universal Numbering System) Number

To register your business, obtain a DUNS number used to identify and track millions of businesses. You can obtain your free DUNS number when registering with the System for Award Management. Log on to www.sam.gov for more information or by contacting Dun & Bradstreet at www.dnb.com.

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