When you acquire a specialized skill of value, people will pay more for your services. As famed management writer Peter Drucker once said, “The economic and social gravity of America will increasingly accommodate the knowledge worker class”. This has been, and is, especially true in the medical community where the price that wealthy Americans are willing to pay for healthcare in favor of themselves, their spouses, and children knows almost no bounds.
Even into the late 1990s, the advantage of affluence meant that you might have gotten the hospital room all to your yourself, some better food, and the likelihood that you would get a good doctor because wealthy people tend to live in wealthy areas and top-tier doctors tend to congregate at such hospitals.
But, in the past ten years, the best doctors in a given area have realized that they could earn annual incomes in the range of … Read the rest of this article!
I have recently been working my way through Howard Schilit’s book “Financial Shenanigans” which teaches intermediate investors the skills to identify companies possibly engaging in accounting behavior that would make Enron executives blush.
One of the things that Howard Schilit pointed out in his very informative work is the fact that companies cannot fake a dividend. Taking that logic one step further, they really cannot fake a growing dividend.
This makes sense at an intuitive. Imagine you are a slimeball executive trying to swindle thousands of hardworking, honest, decent shareholders out of their money by siphoning off funds from the company or overstating profits. By definition, these management teams that are engaging in fraud are overstating profits (either by artificially claiming the profits are higher so that the stock price will go up, or by stealing from the company to fund a lavish lifestyle). In either case, you want to … Read the rest of this article!