Investment Profit Convictions Example

by | Sep 26, 2007 | Archives

Investment profits in yesterday’s message looked at how mankind’s  material success lets our children evolve to a higher investing, business and lifestyle consciousness and this is good.  Understanding how the  younger generation is acting more on its passions (than just seeking money) can  help us figure out better places to invest.

Time Magazine’s October 1, 2007 Global Business Entrepreneurial Hero  gives us a perfect example.  This article tells the story of Steve Ells who founded the Chipotle fast food chain.

This is first a great example of how our (we baby boomers’) kids can work on resolving social issues through business with our financial help.  Ells had a passion to improve fast food through great cooking techniques. His quote was “Just because you serve something fast does not mean that it cannot be the greatest quality”.

Compare this to another fast food founder, Ray Kroc, the founder of McDonald’s whose empire was built around the three HHHs, “he’s Here, he’s Hungry and he’s in a Hurry”.

Yet Ells goers a step further because he was not only concerned with cooking techniques but where the food came from. The Time’s article quotes Ells as saying: “About eight years ago, I had a revelation about what makes for good-quality raw ingredients. Where the ingredients come from, how the animals are raised and how the produce was grown not only affect the flavor but also the environment, animal welfare and the preservation of family farms.”

That certainly is a step higher in consciousness than the Big Mac.

Ells switched their buying system to obtain pork grown with no growth hormones, no antibiotics, and vegetarian feed.

Today according to the Time article Chipotle’s serves more naturally raised meat than any other restaurant company in the world.

Yet there is more. Ells did not go out and work hard in a gas station or some other tough job to raise his first capital. His dad invested $85,000 to start the first restaurant.  This was a great success and as this grew, his dad then invested about $1.5 million.

Finally McDonalds invested $360 million over seven years. They divested their interest in 2006.

This is how markets evolve.  Our children have a new forward look. We parents and the industries of the past era help finance these ideas, when if right will grow and change the world, the way we think, live, act do business and invest.

At the end of 2006 Chipotle had 581 restaurants in 26 states throughout the United States after opening 94 restaurants during the year. 

This is now a publicly traded company listed on the New York stock exchange (Code CMG) with a market capitalization of 1.66 billion dollars.  The share price has more than doubled in the last year. Since this is trading at a P/E ratio of over 67, I am not sure that this share offers good value. One would need to look deeper.

Whether this is the time to invest in Chipotle or not we can see from its example how our kids, using our help are changing the world. Our investments will do well to recognize this fact.  We can at least learn to look for other such rising stars in many fields.

Until next message, may your investments change the world and improve yours.


This is why we are creating new progressive ideas to review through the model portfolios we track. For 2008 for example we’ll add a health portfolio. You can track our multi currency portfolios when you subscribe to our Multicurrency Educational Service.

In addition I’ll send you the full report on how our 2007 portfolios are situated plus the short list for our 2008 portfolios.

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Because of the performance of our portfolios one of the largest financial publishers will shortly begin a cooperative plan to offer our Multi Currency Educational Service.  They are marketing today and this may be the last day to subscribe at the low, existing $149 price.  To take advantage and save during these last days simply go to

We will introduce our new 2008 multi currency portfolios and much more at International Investing and Business Made EZ course in Ecuador.  Join Merri, me and Steve with Jyske Bank this November 9-11 in Cotacachi
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Stay on for our Ecuador real estate tour and shamanic Mingo and save $398.