According to a recent article in Barron’s, there was only one stock market that beat the United States S&P 500, and that was Tokyo’s Nikkei 225.
Although Japan does have some investment risk issues, there are still reasons why investors might consider investing in Japanese companies.
Undervalued Market: Japanese stocks are often considered undervalued relative to other developed markets. Metrics like price-to-earnings ratios and price-to-book ratios can support this viewpoint, especially compared to the US market. This means you may be getting quality companies at a more attractive price.
Improving Corporate Governance: Japan has pushed for better corporate governance in recent years. This includes a focus on shareholder returns, transparency, and improved decision-making, making companies more attractive to investors.
Abenomics Legacy: Economic policies initiated under former Prime Minister Shinzo Abe, known as “Abenomics”, have helped stimulate growth and combat deflation. While the full results are debated, some of the positive effects remain.
Weak Yen: A weaker yen benefits Japanese exporters by making their products more competitive internationally. This translates to potentially higher earnings.
Global Exposure with Stability: Many top Japanese companies are global leaders in their industries. Investing in these companies gives you exposure to worldwide markets while having the backing of Japan’s stable political and economic environment.
Japan has many companies that trade on the NYSE in the form of ADRs (American Depository Receipts).
Honda Motor (HMC) is Japan’s second largest automobile manufacturers by market capitalization, which stands at $57 billion.
The company is widely known for its diverse range of products including automobiles, motorcycles, power equipment, and even private jets. They are the world’s largest motorcycle manufacturer and are a leader in engine technology, striving for sustainability and safety initiatives in all their endeavors.
The stock has a trailing price to earnings ratio of 8.8, a forward P/E of 8.2, and pays a dividend yield of 3.4%.
The stock is trading at a 33% discount to book value, has an excellent 0.66 price to earnings growth ratio, and an outstanding price to sales ratio of 0.41.
Earnings per share grew by over 38% for the year.
ORIX Corp. (IX) is a company name that you may not be familiar with. The company offers leasing and loans to small and medium-sized businesses.
It is a major diversified financial services group based in Japan, providing a broad spectrum of financial solutions, including leasing, lending, rentals, life insurance, real estate, and investment banking. With a global presence, ORIX operates across North America, Asia, the Middle East, and Northern Africa.
The stock has a market cap of 24 billion, trades at 12.3 time trailing earnings and 9.1 times forward earnings.
It sells at 8% below book, has an average P/S ratio of 1.24, and a decent PEG of 0.93. The dividend yield is 3.03%.
Of course, there is Sony Group Corp. (SONY), probably the most recognized brand in Japan. This Japanese multinational conglomerate is a powerhouse in electronics, entertainment, and financial services. They are known for iconic consumer products like the Walkman and PlayStation, but their reach extends far beyond. Sony boasts a diverse portfolio that includes film and music production, financial services, and cutting-edge technological ventures like AI and robotics. This global leader constantly strives to deliver innovative experiences and push boundaries, making it a household name synonymous with quality and progress.
The company has a market cap of $105.5 billion, a trailing P/E of 16.6, and a forward P/E of 15.3.
The stock’s ratios are a bit high with a PEG at 2.81, P/S of 1.18, and price to book value of 2.04. The yield is small at 0.64%.
Maybe the land of the rising sun can make your portfolio rise.
Disclosure: Author didn’t own any of the above at the time the article was written.
Yes, you read that right. There was a stock that traded at $24,480,000,000 per share on a split adjusted basis back on October 3, 2011. That’s $24.48 billion!!!
Today, the stock is trading at $7.25 per share.
The company has had numerous reverse splits, which account for its very high historical price.
Not too bad a trade if you were short it.
Actually it is technically an exchange traded fund, more commonly called an ETF.
This ETF is the ProShares Ultra VIX Short-Term Futures ETF (UVXY), has a goal of producing one and one-half times (1.5x) the daily performance of the S&P 500 VIX Short-Term Futures Index.
The problem with investing in these kinds of ETFs are the risks that are involved, which can affect the price adversely if held for long periods of time. These risks include:
High Volatility: UVXY aims to deliver 1.5 times the daily performance of the S&P 500 VIX Short-Term Futures Index, which tracks the implied volatility of the S&P 500. Volatility is inherently unpredictable, and even small movements in the VIX can lead to large swings in UVXY’s price. This means you could lose a significant portion of your investment very quickly.
Leverage: UVXY uses leverage to achieve its 1.5x target. This means it uses borrowed money to amplify returns, which magnifies both gains and losses. While leverage can lead to larger profits in rising markets, it can also lead to much steeper losses in declining markets.
Decay over Time: Unlike traditional assets that tend to appreciate over time, VIX futures tend to revert to their long-term average. This means holding UVXY for extended periods, even in volatile markets, could lead to significant losses due to this “backwardation” effect.
Rolling Costs: VIX futures contracts expire monthly, and UVXY needs to continuously roll these contracts into new ones. This rolling process incurs costs, which can eat into returns over time, especially during periods of low volatility.
Liquidity: While UVXY is an exchange-traded fund, its underlying futures contracts may have lower liquidity than stocks. This could make it difficult to enter or exit positions quickly, especially during volatile periods.
Expenses: UVXY has an expense ratio of 0.95%, which means it charges 0.95% of your assets annually for management fees. These fees can further erode your returns, especially over longer holding periods.
Not a Hedge: While some investors use UVXY as a hedge against market downturns, it’s crucial to understand that it’s not a perfect hedge. Its performance can be uncorrelated to market movements, and it may not effectively protect your portfolio during all market conditions.
These are extremely speculative ETFs which are appropriate for experienced traders only.
Thanks to Slope Of Hope for giving me the heads up about this.
Disclosure: Author’s no position in the above ETF.
Do you know what the biggest mistake you can make as an investor? Selling too soon. Just because you have a great profit on a stock, doesn’t mean you should sell it, assuming you are a long term investor and not a trader.
I have many examples of selling too soon. Here are just a few.
When I was in the financial services industry many years ago, I was selling a lot of the Franklin Municipal Bond Funds and Franklin GNMA Funds to my clients.
I went to visit the Franklin Mutual Funds headquarters (the company was in its old building at the time, and is now called Franklin Templeton) to do some due diligence, and meet with the broker liaison at the company.
When I was given a tour of the place, I noticed that walls were being knocked down, four employees were sharing a small office designed for one person, and cables were literally being run down the hallways by installers right in front of me.
My first thought was “Wow, this company is growing like crazy. I should check and see if Franklin Resources (BEN) is publicly traded.” It was, on the Pink Sheets. (This was way before it was traded on the New York Stock Exchange.) I bought a couple hundred shares at about $7 per share, and it shortly rose to $8.
Also, at that time, I just bought a rental property. I thought at the time that I should probably sell the Franklin stock in case I needed the funds to do upgrades on the property, plus I had just made a 14% profit in a short period of time. I actually didn’t need the funds for the down payment since I bought the property for nothing down (that’s another story I will write about eventually).
Since then, the stock has had ten stock splits. If I had just kept the stock and forgot about it, my $1400 original investment would now be worth around $542,000.
I have another example. I had 100 shares of Boston Beer Company (SAM) that I held in the form of multiple certificates on one share each (another story). I had paid about $30 a share for the stock back in 2009.
The next year, it rose to $90 a share. I thought that tripling my money in such a short period was a pretty good return, actually a fantastic return, so I thought, why not take all these certificates in to my broker and liquidate them.
While I was in the brokerage firm and one of the representatives was preparing a receipt for me including making copies of every certificate, another representative came over and said “What the hell is with all these certificates?”
When he was making these rude comments, I seriously considered picking up my certificates, and leaving, but I didn’t, unfortunately. I wanted to take my profit. The stocks eventually traded over $1000 a share back in 2020 and 2021. The stock is now trading over $350 a share, still more than ten times my cost.
I could tell you one more story about Apple (AAPL) stock, but it would make you sick. It makes me sick even to think about it.
The point that I’m making is that the dollar amount of profit and the percentage amount of profit you have in a stock is irrelevant. If you believe in the company, there is no reason to sell it, unless you are very desperate for money. And if you are that desperate, see if you can get by with selling half.
Obviously, there’s a chance of holding on to losers, and not getting out soon enough. Maybe you lose $5,000 or $10,000 on a stock that goes to zero. But it’s the big long term winners that pay for all those losses, and still provide huge returns.
The best way to tell if you should sell a stock is to imagine that you didn’t own the stock but you have the money to buy it. Would you buy it now? If the answer is yes, hold on to the stock. If the answer is no, then maybe it is time to sell.
Yes, it’s possible to get a yield of over 5% from a money market fund, but maybe you want a high yield but you also want some capital appreciation potential.
Of course, if you are concerned about your principal, then you should probably stick with the money fund.
But if you want growth, there are four stocks worth looking at that yield in excess of 5%, are selling below book value, and have a market cap over $2 billion.
Book value, in simple terms, reflects what a company’s assets would be worth if it sold everything and paid off its debts today. It is similar to the net worth on a personal balance sheet, but for a business. It’s calculated by subtracting liabilities from total assets. While it offers a snapshot of financial health, it doesn’t capture intangible assets like brand value or future growth potential, which can often influence market value.
Kohl’s Corp. (KSS), the operator of family-oriented department stores, has a market cap of $3 billion.
The trailing yield is 7.42% and the estimated forward yield is 8.03%.
Kohl’s is an omnichannel retailer, operating over 1,100 physical stores and a robust online presence. They mainly focus on apparel, footwear, and home goods for families, offering both national brands and their own exclusive lines. Kohl’s is known for its frequent discounts and rewards programs, aiming to provide an affordable and convenient shopping experience.
The stock is trading at 80% of book value, and has a very favorable price to sales ratio of 0.17. (Remember, a P/S ratio of below 1 is great, and above 2 is not so good.)
The forward price to earnings ratio is 10.2.
Newell Brands, Inc. (NWL) makes, markets, and sells of consumer and commercial products. This $2.84 billion company has a 6.42 % trailing yield and a 5.27% forward yield. The drop is due to a large reduction in the dividend payout back in May of 2023.
Newell Brands is a leading consumer goods company that owns and operates a portfolio of iconic brands you likely recognize. Think everyday items like:
Writing instruments: Sharpie®, Paper Mate®, Parker®, etc. Storage and organization: Rubbermaid®, Contigo®, Sistema®, etc. Appliances and cookware: Oster®, Mr. Coffee®, Calphalon®, etc. Outdoor gear: Coleman®, Campingaz®, Marmot®, etc. Baby and parenting products: Graco®, NUK®, Baby Jogger®, etc. Art supplies: Elmer’s®, Prismacolor®, EXPO®, etc. Fragrances: Yankee Candle®, WoodWick®, Chesapeake Bay Candle®, etc.
They sell these products through various channels, including retail stores, distributors, and their own online platforms.
The stock sells at 91% of book value and has a favorable P/S ratio of 0.35. The forward P/E is 8.01.
Walgreens Boots Alliance, Inc. (WBA), the provider of healthcare and retail pharmacy services, has a market cap of over $19 billion.
After a dividend drop, the stock still has a forward dividend yield of 6.83%.
Walgreens Boots Alliance is a global leader in retail pharmacy and healthcare, serving millions daily with a 170-year heritage. Their business operates across two main segments:
Retail Pharmacies:
Over 12,500 locations in the US, Europe, and Latin America under brands like Walgreens, Boots, Duane Reade, and Benavides. Dispensing medications and offering a wide range of health services like vaccinations, immunizations, and health screenings. Selling health and beauty products alongside other convenience items.
Pharmaceutical Wholesale:
Alliance Healthcare distributes pharmaceuticals and medical supplies to hospitals, pharmacies, and other healthcare providers globally.
Key Points:
* Large footprint: Over 330,000 employees and presence in eight countries. * Integrated healthcare: Combines pharmacy, retail, and wholesale operations for a comprehensive offering. * Focus on convenience and innovation: Provides digital platforms and healthcare solutions for patients and consumers.
The stock sells at 98% of book value and has a superior price to sales ratio of 0.13.
The stock trades at 33 times trailing earnings and 6.3 times forward earnings.
Xerox Holdings Corp. (XRX) is a workplace technology company, which builds and integrates software and hardware for enterprises.
The company has a market cap of $2.27 billion and pays a yield of 5.41%.
While Xerox may first come to mind as a photocopier company, their business has actually evolved significantly in recent years. Here’s a short description:
Focus: Xerox is now a workplace technology company, offering both hardware and software solutions for document management and workflow automation.
Key Services:
Workplace Printing Solutions: Still relevant, offering printers, copiers, and related supplies for both office and production printing. Digital Services: This has become a major focus, providing document workflow automation, digital document processing, personalized communications, and managed IT solutions. Security Services: Emphasizing information security with services like managed security and robotic process automation. Target Market: Businesses of all sizes, from small and medium-sized enterprises to large corporations.
Key Differentiators:
Legacy of innovation: A history of research and development, contributing to advancements like the graphical user interface. Global reach: Serving customers in over 160 countries. Client-centric approach: Tailoring solutions to individual needs and challenges.
The company is selling at 90% of book value and trades at a forward P/E of 7.6. The price sales ratio is an excellent 0.33.
Summary
A stock with a lot of great ratios can turn into excellent investments. However, when stocks sell far below the book value, it may be a bargain or it may be a harbinger of negative things to come, such as lower earnings or worse losses.
Disclosure: Author didn’t own any of the above at the time the article was written.
If you are looking for a stock that has limited downside, it is hard to beat a stock that is trading at a price below the amount of cash it has per share, and on top of that, has little or no debt.
If a debt free company is selling below its cash per share, and if the company were to go out of business today, assuming all the company’s assets are completely worthless except for the cash, then an investor would have a guaranteed profit.
This biggest problem with these below-cash stocks is that sometimes corporate spending can deplete cash very quickly.
There are actually a few companies that all into this category, in spite of the fact that the stock market is trading near an all time high.
LendingClub Corp. (LC), which provides an online marketplace that facilitates loans to borrowers and investments, is trading at a 27$ discount to cash per share.
LendingClub is a financial services company headquartered in San Francisco, California. It was founded in 2007 and is the first peer-to-peer lender to register its offerings as securities with the Securities and Exchange Commission (SEC) and to offer loan trading on a secondary market.
Today, LendingClub is more than just a peer-to-peer lender. It is a full-spectrum fintech marketplace bank that offers a variety of financial products and services to its members, including:
Personal loans: LendingClub offers personal loans for a variety of purposes, such as debt consolidation, home improvement, and medical expenses.
Certificates of deposit (CDs): LendingClub offers CDs with a variety of terms and interest rates.
Checking accounts: LendingClub offers checking accounts with features such as mobile banking and bill pay.
Business loans: LendingClub offers small business loans for a variety of purposes, such as working capital, expansion, and equipment financing.
Auto refinance loans: LendingClub offers auto refinance loans to help borrowers lower their interest rates and monthly payments.
Patient solutions: LendingClub offers patient solutions to help borrowers with medical bills.
K-12 education loans: LendingClub offers K-12 education loans to help parents finance their children’s education.
As of December 31, 2023, the company had over 4.7 million members and had originated over $80 billion in loans.
The stock is selling at a 24% discount to its book value, and has an excellent price to sales ratio of 0.75.
This $946 million market cap company has a trailing price to earnings ratio of 24 and a forward P/E of 10. Earnings per share growth next year is anticipated to be 270.66%.
American Well Corp. (AMWL), which provides online healthcare services, is trading at an amazing 24% discount to its cash per share, and the amount of long term debt being very low. The market capitalization is $316 million.
American Well Corp., operating as Amwell, is a leading company in the telemedicine field, headquartered in Boston, Massachusetts. They connect patients with doctors through secure video consultations, offering a convenient and flexible alternative to traditional in-person visits. Amwell primarily operates through two arms:
Platform solutions: They provide a subscription-based platform to healthcare providers, enabling them to offer telehealth services to their patients. This includes features like scheduling, video conferencing, and electronic health record integration.
Direct-to-consumer services: Through their Amwell Medical Group, patients can connect with licensed doctors directly for various non-emergency concerns,receiving diagnoses, prescriptions, and referrals if needed.
Amwell boasts a vast network, partnering with 55 health plans, 240 health systems, and over 40,000 providers, reaching millions of patients across the US. They also offer specialty consultations, chronic condition management programs, and are continuously expanding their services in this ever-evolving healthcare landscape.
The company has $538 million in cash, yet only $11.8 million in long term debt.
The stock has a reasonable price to sales ratio of 1.18 and an excellent price to book value of 0.63. Unfortunately, the company has been generating negative earnings.
NET Power, Inc. (NPWR), a $596 million market cap company, is a provider of clean energy technology.
Net Power Inc. is a clean energy technology company aiming to revolutionize power generation with their “energy trifecta”: clean, reliable, and low-cost energy. Founded in 2010 and headquartered in Durham, North Carolina, they focus on natural gas as a fuel source while capturing and sequestering the resulting CO2 emissions.
Their key innovation lies in the NET Power Cycle, an oxy-combustion process that combusts natural gas with pure oxygen. This unique method captures over 97% of carbon dioxide at the source, significantly reducing greenhouse gas emissions compared to traditional methods. Additionally, the captured CO2 can be used for industrial purposes or safely stored underground, further minimizing environmental impact.
The stock is trading at 92% of its cash per share and has no debt. Earnings have been negative.
Just Remember this About Below Cash Stocks
Often there are significant (negative) reasons why stocks sell below cash. In addition, these stocks are very low cap, so they should all be considered extremely speculative.
Disclosure: Author didn’t own any of the above at the time the article was written.
In December of 2008, Igor Panarin, a Russian professor and dean of the Russian Foreign Ministry’s academy for future diplomats, predicted the economic and moral collapse of the United States in the year 2010.
This former KGB agent says that by mid 2010, the US will be in a civil war causing the country to break into six parts.
He said that California will become the California Republic, and be under Chinese rule, and Texas will become part of Mexico.
Have you ever wondered why stocks that are heavily shorted can spike up in price so much?
When you short a stock, it means that you plan to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares immediately, then buy back those shares at a hopefully lower price so that you can return those shares. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.
Short sellers can make money, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in fast to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any positive news can trigger the short squeeze.
Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:
Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high and potential short squeeze plays.
Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.
Short Percentage Increase ~ This is the percentage increase in the number of short sellers from the previous month.
The following are some heavily shorted stocks that may be worth considering.
The fourth stock on the list, Kohl’s (KSS) has over 27% of its float shorted, an increase of 8% over last month.
The short interest ratio is 5.4, which means that it would take the short sellers over five days to cover their position, based on recent average volume.
Cinemark Holdings (CNK) is another stock that is heavily shorted with over 26% now short with almost no change in short interest from the previous month.
The short interest ratio is 9, which means that it would take the short sellers over nine days to cover their position, based on recent average volume.
Just keep in mind that just because a stock has good ratios and is heavily shorted, doesn’t mean that the stock will go up, especially in a bear market. Also, stocks that are significantly shorted may be shorted for a reason.
Disclosure: Author had no positions in any of the above at the time the article was written.
The following is a short list of some of the many stocks going ex-dividend during the next month, which can be helpful for traders and investors interested in the stock trading technique known as “Buying Dividends” or “Dividend Capture.” This strategy involves purchasing stocks before the ex dividend date and selling them shortly after the ex-date at a similar price, while still being eligible to receive the dividend payment.
Although this technique generally proves effective in bull markets and flat or choppy markets, it is advisable to exercise caution and consider avoiding this strategy during bear markets. To qualify for the dividend, it is necessary to buy the stock before the ex-dividend date and refrain from selling it until on or after the ex-date.
However, it is important to note that the actual dividend may not be paid for several weeks, as the payment date can be delayed by up to two months after the ex-date.
For investors seeking a comprehensive list of stocks going ex-dividend in the near future, WallStreetNewsNetwork.com has compiled a downloadable list containing numerous dividend-paying companies. Here are a few examples showcasing the stock symbol, ex-dividend date, periodic dividend amount, and annual yield.
Wells Fargo & Company (WFC)
2/1/2024
0.35
2.78%
MetLife, Inc. (MET)
2/5/2024
0.52
2.93%
Starbucks Corporation (SBUX)
2/8/2024
0.57
2.46%
Penske Automotive Group, Inc. (PAG)
2/14/2024
0.87
1.98%
Amgen Inc. (AMGN)
2/15/2024
2.25
2.89%
Johnson & Johnson (JNJ)
2/16/2024
1.19
2.98%
Lockheed Martin Corporation (LMT)
2/29/2024
3.15
2.93%
To access the entire list of over 100 ex-dividend stocks, subscribers will receive an email in the next couple days with the full list. If you are not already a subscriber, you can sign up using the provided signup box below. Don’t miss out on this valuable information, and the best part is that it’s free!
Dividend Definitions
To better understand the dividend-related terms, let’s define them:
Declaration date: This refers to the day when a company announces its intention to distribute a dividend in the future. Ex-dividend date: On this day, if you purchase the stock, you would not be eligible to receive the upcoming dividend. It is also the first day on which a shareholder can sell their shares and still receive the dividend. Record date: This marks the day when you must be recorded on the company’s books as a shareholder to qualify for the dividend. Typically, the ex-dividend date is set two business days prior to the record date. Payment date: This is the day on which the dividend payment is actually made to the eligible shareholders. It’s important to note that the payment date can be as long as two months after the ex-date.
Before implementing the “Buying Dividends” technique, it is crucial to reconfirm the ex-dividend date with the respective company to ensure accuracy and avoid any unexpected changes.
In conclusion, being aware of the stocks going ex-dividend can be advantageous for traders and investors employing the “Buying Dividends” strategy. WallStreetNewsNetwork.com provides a convenient resource to access a comprehensive list of such stocks, allowing individuals to plan their investment decisions effectively. Remember to stay informed and consider market conditions before employing any investment strategy.
Disclosure: Author did not own any of the above at the time the article was written.
Ah, the allure of owning your own private island. It’s a daydream most of us indulge in, but for some, this fantasy becomes reality.
Intangible Benefits of Island Ownership
While the financial considerations of island ownership are certainly intriguing, the true treasures lie beyond the bottom line. Let’s dive into the myriad benefits, both tangible and intangible, that await aspiring island escapists:
Unparalleled Seclusion: Your island becomes your sanctuary, a refuge from the hustle and bustle of the everyday world.
Adventure Awaits: Every day on your island is an opportunity for discovery and adventure.
Stress-Melting Serenity: Your island becomes a haven for peace and rejuvenation, a place to reconnect with yourself and nature.
Digital Detox: Unplug, unwind, and rediscover the simple joys of life. Leave the constant notifications and endless to-do lists behind. Your island becomes a space for mindful living, where the present moment reigns supreme.
Creative Catalyst: The raw beauty and solitude of your island can spark inspiration like wildfire. Whether it’s writing a novel, composing music, or painting landscapes, your island becomes a muse for the creative spirit.
Building Your Own Utopia: Design your island as a haven for loved ones, creating lasting memories and fostering deeper connections.
Environmental Stewardship: Become a guardian of your own ecosystem. Implement sustainable practices, preserve endangered species, and leave a positive impact on the land you call home. Your island becomes a beacon of conservation, setting an example for generations to come.
A Family Legacy: Owning an island is more than just an investment; it’s a legacy you can pass on to future generations.
Financial Benefits of Island Ownership
While the recreational and personal benefits of island ownership are undeniable, there are also some potential financial advantages to consider. However, it’s crucial to remember that these benefits are not guaranteed and depend heavily on various factors like the island’s location, size, amenities, and development potential. Here are some possibilities:
Direct Income:
Island Rental: Renting your island to high-end vacationers or celebrities can generate substantial income,especially if it boasts unique features or luxurious accommodations. Think private beaches, eco-tourism bungalows, or amazing boating spots.
Resource Extraction: Depending on the island’s resources, you could potentially establish sustainable harvesting of fish, timber, or even natural resources like minerals, with proper permits and environmental considerations.
Eco-Tourism Development: Create a sustainable eco-resort or nature reserve, attracting eco-conscious tourists and generating income through guided tours, educational programs, and accommodation.
Indirect Financial Benefits:
Appreciation: If strategically chosen, the value of your island could appreciate over time, especially if it’s located in a desirable area with limited supply. This appreciation can offer a significant return on investment in the long run.
Tax Advantages: There may be some tax benefits, if the island is rented out.
Debt-Free Retirement: Owning an island can be a unique, self-sufficient retirement plan. By building your own home and growing your own food, you can significantly reduce your living expenses and achieve financial independence.
Additional Considerations:
Upfront Costs: Purchasing and maintaining an island can be incredibly expensive. Initial costs include the purchase price, legal fees, building permits, and infrastructure development. Ongoing costs involve maintenance, staff salaries, utilities, and security.
Accessibility and Infrastructure: Remote islands might require significant investments in transportation infrastructure like boats, airstrips, or solar power, further adding to the initial costs.
Legal and Regulatory Issues: Navigating island ownership involves complex legal and regulatory hurdles,particularly regarding land use, environmental regulations, and building codes.
Remember, owning an island for financial gain is a high-risk venture. Thorough research, expert consultation, and a realistic appraisal of your resources are crucial before embarking on this adventure. The financial benefits should be carefully weighed against the potential risks and challenges.
Ultimately, the decision to purchase an island for financial reasons should be driven by a combination of passion, careful planning, and a healthy dose of financial prudence.
Benefits of US Islands Over Other Countries
For an American considering owning an island, there are several potential advantages in choosing a US island over one in another country:
Legal and Regulatory Ease:
Familiar legal system: Owning land in the US means operating within a legal system you likely already understand, reducing complications and simplifying processes like property registration, permits, and tax filing.
English as the primary language: Communication with authorities, contractors, and potential business partners becomes much easier as you don’t need to navigate language barriers.
Clearer property rights: Property ownership laws in the US are generally well-established and transparent,providing greater security and clarity compared to some foreign countries.
Accessibility and Travel:
Reduced travel time and cost: Domestic travel is often faster and less expensive than international trips,making it easier to visit your island more frequently and manage its upkeep.
Familiar infrastructure: Transportation and logistics will likely be more straightforward, with established infrastructure for transportation, communication, and utilities.
Emergency response and security: Access to familiar emergency services and law enforcement can provide peace of mind, especially for remote islands.
Financial Considerations:
Potentially lower overall cost: Depending on the specific islands being compared, US islands may offer more competitive purchase prices and development costs due to established markets and infrastructure.
Tax implications: American citizens are typically subjected to US tax laws regardless of where they own property, potentially streamlining tax reporting and avoiding complicated international tax treaties.
Investment appeal: US real estate, particularly waterfront properties, is generally considered a stable and reliable investment, potentially increasing the resale value of your island in the future.
Cultural Similarities:
Familiar community and amenities: You’ll likely find more cultural similarities with the surrounding communities, simplifying integration and access to familiar amenities.
Reduced language barrier: Communication with potential employees, neighbors, and service providers will be easier, fostering smoother relationships and collaborations.
Similarities in business and legal practices: Conducting business on your island, if desired, will be more familiar and straightforward due to shared business practices and legal frameworks.
Of course, the specific advantages will vary depending on the location of both the US and foreign islands being considered. Factors like distance to the mainland, development level, and environmental regulations will also play a role. It’s crucial to do your research and evaluate each island based on your individual needs and priorities.
Ultimately, while owning an island in another country can offer unique experiences and opportunities, an American looking for a familiar, easily accessible, and potentially financially advantageous option may find significant benefits in choosing a US island.
California Islands and Other US Islands For Sale
So are there islands you can actually buy within the United States? The answer is a definite Yes!
As a matter of fact, you can even buy islands in California, of all places.
You have a couple options in the San Francisco Area. Red Rock Island (also known as Moleta, Molate Rock, and Golden Rock) is for sale for $25,000,000.
Picture credit: Zillow.com
The size of the island, according to PrivateIslandsOnline is six acres, 5.8 acres according to Wikipedia, and 5.78 acres according to the listing agent, Christopher Lim with Christie’s Int’l Real Estate as reported on Zillow.
It is located near the Richmond/San Rafael Bridge, just a hop, skip, and a jump from the city of San Francisco. It has a sandy beach on the east side, hiking trails, and tunnels.
This unique property is the only privately owned island in San Francisco Bay.
Dutras Island in Oakley, California, is probably one of the most inexpensive islands for sale in the world, at only $125,000.
Oakley is a small town in the far eastern part of the San Francisco Bay Area, in Contra Costa County.
Dutras Island, formerly called Dutra Island, is four acres, and is accessible by boat and air. The following video shows an aerial view.
Vladi Private Islands has almost a dozen U.S. islands for sale, in such states as New York, Wisconsin, Maryland, South Carolina, Florida, Texas, and Maine.
Owning an island isn’t just about making money or escaping the world; it’s about embracing a new way of life. It’s about reconnecting with nature, rediscovering yourself, and leaving a lasting legacy. So, if the call of the open ocean whispers in your ear, and the dream of your own island paradise beckons, remember, it might just be the smartest investment you’ll ever make.
The Heritage Foundation has named Singapore as the number one country in its Index of Economic Freedom.
The Country Index of Economic Freedom, published by The Heritage Foundation, is a widely used measure of the economic liberty enjoyed by individuals in different countries. It works by analyzing and scoring 12 key areas considered essential for economic freedom, grouped into four broad categories:
1. Rule of Law (property rights, judicial effectiveness, government integrity): This category assesses the protection of individual property rights, the fairness and efficiency of the legal system, and the level of corruption within the government.
2. Government Size (fiscal freedom, government spending, public sector burden): This category examines the extent of government intervention in the economy through taxation, spending, and regulations.
3. Regulatory Efficiency (business freedom, labor freedom, monetary freedom): This category evaluates the ease of starting and operating a business, the flexibility of labor markets, and the soundness of the monetary system.
4. Open Markets (trade freedom, investment freedom, financial freedom): This category assesses the openness of a country’s borders to trade and investment, and the level of government intervention in the financial sector.
Each of these 12 areas is graded on a scale of 0 to 100, with 100 representing the most economically free environment. The overall score for a country is then calculated by averaging the scores across all 12 areas, giving equal weight to each one.
Methodology: The Heritage Foundation uses a variety of quantitative and qualitative data sources to compile the index, including official government statistics, surveys of businesses and experts, and reports from international organizations.
Uses: The Country Index of Economic Freedom is widely used by businesses, investors, and policymakers as a tool for understanding and comparing the economic environments of different countries.
Singapore shines in many areas. Here are five key things it’s often praised for:
1. Economic Powerhouse: Singapore boasts a dynamic and diverse economy, consistently ranking high in global competitiveness and ease of doing business. Its strategic location, efficient transport networks, and skilled workforce attract multinational companies and contribute to its robust GDP growth.
2. Culinary Melting Pot: A vibrant mosaic of cultures translates to a mouthwatering culinary scene. From traditional hawker centers bursting with local delicacies to Michelin-starred restaurants showcasing global cuisines, Singapore tantalizes any palate.
3. Green City in Bloom: Despite its urban landscape, Singapore prioritizes green spaces. Lush parks, vertical gardens, and tree-lined boulevards offer residents and visitors a refreshing escape from the city buzz. Sustainability initiatives like the Green Plan 2030 further promote environmental consciousness.
4. Innovation Hub: Home to world-class research institutions and tech giants, Singapore embraces innovation. From fintech ventures to cutting-edge healthcare research, the city-state constantly pushes boundaries and fosters collaboration within a thriving startup ecosystem.
5. Multicultural Mosaic: Singapore’s diverse population, representing various ethnicities and religions, thrives in harmony. This inclusive and tolerant society celebrates its multicultural heritage through festivals, traditions, and everyday interactions, enriching the social fabric.
These are just a few highlights, and depending on your interests, you might further appreciate Singapore’s efficient public transportation, world-class educational system, or vibrant arts scene.
So investors are asking, is there a way to invest ion Singapore?
One of the largest Singapore stocks that trades in the U.S. is Grab Holdings (GRAB), with a market cap of $12.4 billion.
The company is a Southeast Asian super app provider based in Singapore, offering a multitude of everyday services like ride-hailing, food delivery, and digital payments through its user-friendly mobile app.
Founded in 2012, Grab has grown into a regional powerhouse, serving millions of users across eight countries in Southeast Asia. Its commitment to innovation and local adaptation has helped it become a deeply ingrained part of the daily lives of many in the region.
While ride-hailing remains its core business, Grab has steadily expanded its offerings, venturing into food delivery, digital payments, financial services, and even grocery delivery. This strategic diversification has fueled its impressive growth and solidified its position as a leading tech player in the region.
Unfortunately, the company has been generating negative earnings, but is expected to be close to breakeven next quarter.
However, annual revenues growth over the last five years was 103.91%, with the latest quarterly revenue growth of 61%.
Another large Singapore company is the Internet and mobile gaming platform company, Sea Ltd. (SE), with a market cap of $20.4 billion.
Founded in 2009, it has exploded into a regional leader, serving millions across Southeast Asia and Latin America. Its mobile-first approach and deep understanding of local preferences have fueled its success, with Shopee dominating online shopping and Garena boasting thriving mobile games like Free Fire. SeaMoney further bolsters its ecosystem by offering cashless payment solutions, creating a seamless digital experience for users.
The stock trades at 35 times trailing earnings and has a forward price to earnings ratio of 46. Earnings per share growth this year was an amazing 140% and quarterly earnings growth per share year-over-year of 74.7%.
Annual sales growth for the last five years was 104%.
JOYY, Inc. (YY), the communication social platform, is a $1.42 billion company.
The stock has a forward P/E of 8.68, and earnings per share growth this year was 40.55%.
Of course, for diversification, you can always choose the iShares MSCI Singapore ETF (EWS), which has an expense ratio of 0.50%.
Will a free country benefit these stocks? Let freedom reign.
Disclosure: Author didn’t own any of the above the time the article was written.
