Library of ideas
Library of Ideas

crucible of experience
Crucible of Experience

stairway to a fortune
Stairway to a Fortune

Treasury of Tales
Treasury of Tales

Vault of Old Videos
Vault of Old Videos

Portfolio of Motivation
Portfolio of Motivation

Table of Negotiation
Table of Negotiation

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Get Rich After Retirement

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Start Here!

Penny Capitalist is the starting point for those who wish to be capitalists but lack the huge funds normally associated with capitalism.  It does take funds but the smallest amounts, not mega dollars.  Mega dollars is the goal not the beginning.

In free countries it is possible to acquire tiny amounts of money to begin the process of capitalism.  It is even possible to capitalize and grow a fortune in countries with oppressive economic conditions or restrictions to personal freedoms, but it is almost expected for the citizens of free nations to  prosper.

This website, including forum and blog, is the result of my life long quest to fulfill the promise of a free market system.  My grandfather was a white sharecropper who scratched out a living on land belonging to Indians in Southern Oklahoma.  I did not come from a family of means.  While wise in many ways of the world, finance was not a secret handed down from generation to generation in the Cox family.

I told my family at a very early age that I would be rich.  My father warned me that most likely I would be too busy making a living to make a fortune.  He was right.

Like many baby boomers, I tried my hand at various enterprises.  Some were successful, others less successful.  Most of them made money, but none of them made the fortune I sought.  It was a wonderful life.  I dabbled in everything from music, art, construction, investment, and insurance.  I've traveled most states and several countries. I've met many important and interesting people…I just failed to accumulate the capital I expected. 

Just as my Dad had warned me, I was too busy making a living to make a fortune.  More than that, I was too busy having a great time with moderate money my living provided to bother with the fortune.  Making money in America was easy enough that a few hours working provided surplus funds for a life of exploration and excitement.  Finally, I slipped out of the shackles of poverty and into an easier lifestyle.

Today, America is changing.  Unemployment is approaching the levels my grandfather used to talk about as he described the Great Depression.  It used to be that almost anyone wishing to rise above poverty could get himself a job, work hard and achieve a comfortable lifestyle.  Today it is not so easy.  Jobs are scarce.   It doesn’t matter!  Capital pays a better return than back breaking labor. 

In many ways capital investment is like farming.  A farmer plants a seed, nurtures the seed, waters it and waits for the harvest.  The farmer has to recognize fertile ground from infertile ground.  He may prepare poor soil to enrich it so that his seeds grow.  Capitalism is like that.  A poor man is unlikely to make a million dollar deal under a bridge, but even the poorest homeless person can acquire a few pennies, invest in something he can understand, and make a profit.  Step by step, a penny capitalist can grow his capital, learn news skills appropriate to his level of investment experience, and move into a new world of abundance.

Even the most hopeless people can pick up a sack full of aluminum cans and sell them for scrap.  Derelicts do this on a daily basis.  They work the streets, harvest a few cans, acquire a few dollars, and use those dollars to feed their habit.  What if they invested a dollar and watched it grow into a fortune?

The secret to becoming a capitalist is to start small.  Too many people think capitalism requires large piles of cash or credit.  It is true that many capitalists rely on leveraged credit; it is also true that leveraged credit is the very thing that brings them to their knees.  Most of the world is in trouble right now because of credit.

Many entrepreneurs sit on the sidelines waiting for the banks to lend them money.  I am amazed at how the simple solution seems to escape them all.  Credit is for people who want to invest on a scale larger than their personal capital affords them.

Think about it!  If people were adequately experienced at a given level of capital, they would have that exact same amount of capital available for that investment.  If their experience was negative, they would have neither the right kind of experience or the the right amount of capital to make the investment they were considering.

Someone said things that can not perpetuate themselves, tend to stop.  If a capitalist knows what he is doing, he will make money.  If he does not, he will lose money.  Why does the whole world wait for easy money to fund ventures beyond the ability of the borrowers to succeed?

I feel a little like the story character who stood at the side of the parade and announced the emperor was naked.  The whole crowd had been told that the more worthy the individual, the more luxurious the emperor’s clothes would appear.  No one wished to be the fool so no one admitted the emperor was naked…but he was.  It was all a scam.

The current financial crisis is a reality, but it only happened because of the massive credit scam.  The fools of the world continue trying to visualize the emperor in fine clothes…but he is naked!  The more they proclaim the crisis to be over, the deeper it gets.

Eventually, they will convince themselves that it really is over and the economy will begin to grow again…another cycle of insanity.

The truth of penny capitalism is so simple it is embarrassing.  The secret is to start small, grow your skills as you grow your capital and your own economy can begin recovery today! 

A weight lifter doesn’t start out with the big weights.  He starts small and adds a little each day until he has massive slabs of impressive muscle.  Most young men try a heavy weight early in life, find it difficult to lift, and abandons the process.  The 99 lb weakling wants it bad enough to start with small weights he can handle and grows into the strong man in the movies!

Growing pennies into dollars and dollars into fortunes does not take as long as you might think.  Be a little patient and follow some of the advice offered on these pages.  As you learn along the way, share what you learn with others.  We all want to live a life of easy abundance.  Let's get started!


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countries with little but penny capitalism