Thursday, 25 April 2013

7 Secrets Wealthy People Know About Amassing And Maintaining A Fortune
Latest from Forbes:

1. Cash Flow Is Important. Buy MLPs, Sell The Steak House.

'Where does Brad Pitt put his multi-million-dollar paychecks? It’s not too much to presume that he, like much of Hollywood, has money invested in master limited partnerships (MLPs). Conversations with five of Hollywood’s top money managers revealed a cult following for these stocks, which generate strong yields and cash flow. Like real estate investment trusts, MLPs pay no taxes. Hence, they have more to share with investors, and payouts are more lightly taxed.
They’re certainly more than one-hit wonders. The Alerian MLP Index’s returns beat the S&P 500′s on a 1-year, 3-year-, 5-year and 10-year basis. The index, holding some 50 MLPs, favors gas-and-oil infrastructure companies like Enterprise Products Partners, Kinder Morgan KMI 0% and Plains All American Pipeline.

Alan Goldman, a Los Angeles business manager with a star-studded rolodex and client roster, says he’s often left talking his crew out of pitches on the next trendy restaurant, instead advising more consistent investments, like MLPs. “We find that they need to be more conservative than Joe Average.” Goldman sighs. “The restaurants are very, very popular with entertainers. We look at something like a restaurant and just assume that the money is gone.”'

2. Think Like Zuck. Think Trusts. Click to link to rest of Forbes article.
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