EVERYONE, AND I MEAN EVERYONE, EXPECTS, DEMANDS, AND WILL ACCEPT NOTHING LESS THAN HAVING THE STOCK, BOND, ETC. GO STRAIGHT UP THE MINUTE THEIR PURCHASE IS COMPLETED.  ALSO, IT ABSOLUTELY MUST STAY UP OR THEIR FINANCIAL LIFE IS IN SEVERE JEOPARDY.

Seriously, this is, and has been, the leading source of financial losses, both minor and major.  People in general are ALWAYS, moving from one broker, money manager, mutual fund, etc to another in the constant search of GREAT WEALTH IN A VERY SHORT PERIOD OF TIME---THE FACTS OF LIFE ARE THAT IT JUST DOES NOT AND, MORE IMPORTANTLY, CANNOT WORK THIS WAY. You can see that in a very brief time everyone would be extremely wealthy and NO ONE would work and thus ALL WEALTH WOULD BE DESTROYED.

I want to cite a real life example of what I mean by the above, to wit:

    1977 buy 1000 Boeing at $50.00 per share = $50,000.00

    Simply hold this position through thick and thin (more on that later) and there were some really bad times for Boeing.  As a matter of fact as recently as 3/31/03 this stock trades at $25.06.  However, if you had done absolutely nothing, your holding would be worth the following:

     July of 2006 you would have:

                   30,375 shares at the current value of $80.47 per share equal $2,444,276.25

                   With a dividend income each year of $35,450.00 or 3,037.50 per month

                    Your cost would be 1.62 per share and a yield of 74.70%

I MUST ADD THAT IF THIS WAS MANAGED WELL, THAT IS SELLING SOMEWHERE NEAR THE HIGH AND BUYING SOMEWHERE NEAR THE LOW THE RETURN INCREASES TO 3 TIMES THE ABOVE.  Also, by using option strategies, the cash return could be raised to the point that one would have a NEGATIVE cost of about ($12.00) per share.

THE MORAL OF THIS EXAMPLE IS THAT ALL EFFORTS MUST BE DIRECTED TO BUYING COMPANIES OF VERY HIGH VALUE AT DEEP DISCOUNT PRICES (THIS CAN ONLY BE DONE WHEN THE AVERAGE INVESTOR LOSES ALL REASON AND SELLS WITHOUT ANY REGARD FOR FUTURE EARNINGS OR FOR CURRENT VALUE.

THIS IS WHAT HARGIS CAPITAL MANAGEMENT IS ALL ABOUT---PLANNED, DELIBERATE, WEALTH ACCUMULATION.

To further explain the above, the following questions arise:

1. How does one define the ubiquitous term VALUE??

It takes weeks and months, sometimes years to develop what is value in a particular industry—this CANNOT be done with a broad stroke model (as some would have you  believe) but requires extensive research and diligence.

2. WHEN can this purchase/sale be made properly??? This demands constant technical analysis and close observation of the trading pattern (as much as 7 or 8 hours per day)

3. Option income?? This requires years of experience and total observation of particular volatility and trading patterns.

4. One must NOT be affected by emotions but focus only on LONG TERM EARNINGS AND FUTURE INDUSTRY GROWTH.

Enough of my rhetoric that I’m sure must bore you to death.

Stay cool and we will invest cool.

Jack