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Business Development And Money Making: Long Term Investment During Crisis

Thought on that the long-term investments made during crisis can bring in the good income is banal, but is true. The American magazine has decided to look on what income could be received at an investment of money in the share of the American companies during Great Depression. It has appeared that very much and very quite good investment could be obtained.

The magazine by means of Center for Research in Security Prices business schools of the Chicago University has conducted research on purpose to find ?the best purchasing at the time of Depression?. Better to say, shares which have grown most strongly. As a result the list has been constructed of 50 investments which have shown the best cumulative income during the period with 1932 for 1954. The cumulative income is understood as the complete income which was brought, including price growth, dividends and other payments.

Let us look at some of them:

1932 year is chosen because market rapid growth and 1954 because only in this year the Dow Jones index has reached the former maximum.

The practical advantage of such research, most likely, isn’t present, but nevertheless it is interesting to look as why it grew those years. Probably, investors can use the same logic for creation of the “epicritic” portfolio.

The income on the best investments for those 22 years has constituted ten thousand percent. That is, if the 30-year-old person invested 1000 dollars in 1932 by the time of when it was possible to start to reflect about pension, it would have pair of hundreds thousand dollars on hands. Also the effect of “low base?: here affects – shares in 1932 were unfairly cheap and the result of strategy ?has purchased and holds?. After all, say, 20000 % for 22 years are on the average approximately 27,5 % annual.

Many companies from the turned out list don’t exist today any more. Other steels parts of large corporations.

Electric Boat: the Unsinkable manufacturer of submarines

The cumulative income with 1932 for 1954: 55000 of % (the Position in Top-50: 1)

Where this company now? Division General Dynamics

Release of hundreds ships and submarines during the Second World War has allowed the company to become the leader of a rating. The company also is known for that during cold war has constructed the first-ever nuclear submarine U.S.S. Nautilus.

International Paper and Power: the Paper, not plastic

The cumulative income with 1932 for 1954: 30503 of % (the Position in Top-50: 4)

Where this company now? International Paper

Long before occurrence of plastic packaging the paper was applied to all kinds of correspondence and parcels. By the way, the whole four positions in Top-50 occupy the companies producing a paper, a cardboard, paper packets and goffered paper goods.

Zenith Radio: Adjust!

The cumulative income with 1932 for 1954: 24146 of % (the Position in Top-50: 7)

Where this company now? LG Electronics part

At the time of when radio receivers were big and were considered not as personal gadgets, and furniture, they were produced not in Asia, but in America. The company issued both civil and military receivers.

Between Great Depression and the Second World War many Americans or had no money for purchasing, or didn’t want them to spend. Therefore to manufacturers of consumer goods, at that time it was necessary to retail networks and shops hardly.

It is very important that government, despite this crisis is not abandoning to assist small businesses. And small business grants can be a real helper right now.

But, surely, you should remember that today the fight for small business grants as well as for other kinds of grants is harsher. This is natural – more businesses need them. So before you start your battle for the small business grants, please make sure to visit this blog for more info about grant industry.

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