Rogue Investing Report Issue 15

Hello Rogue Investors,

I think now is a good time for you to grade my performance.

After all, if my stock recommendations stink, why should you read my newsletter!

Here is summary of the stock recommendations I have made over the past year and the returns since I made each recommendation:

Stocks:

Hospitality Properties Trust (HPT)                + 6.0%
Starbucks (SBUX)                                      + 6.5%
Diebold (DBD)                                            +16.7%
Teva Pharmaceuticals                                 +74.2%
Burlington Northern (BNI)                             + 5.0%
Compudyne Corporation (CDCY)                  +18.8%
Berkshire Hathaway (BRK.A or BRK.B)         - 1.0%
Daktronics (DAKT)                                      +27.0%
Checkpoint Software (CHKP)                       +34.5%
Monaco Coach (MNC)                                 +40.0%
Taro Pharmaceuticals                                 +31.0%
Orthodontic Centers Of America (OCA)        +25.0%

Mutual Funds:

Heartland Value (HRTVX)                            +31.0%
Fidelity Low Priced Stock Fund (FLPSX)      +18.5%

These percents are based on the market quotes before the Fourth of July. In the last few weeks the market has gone up substantially, so these percents are conservative.

I think the record speaks for itself. Through a war and some severe market declines, the stock and mutual fund recommendations I made have held up. I made all these investing decisions using the same information I provide in my ebook, ROGUE INVESTOR (http://www.rogueinvestor.com/investing_ebook.html).

Ironically, the only stock that was down since I recommended it was Warren Buffett's Berkshire Hathaway. However, I think I can trust Warren Buffett to make good investing decisions so I will
stick by my recommendation to buy Berkshire Hathaway stock.

For this month, I decided to profile a largely unknown real estate investing area: tax lien certificates. In the process of updating a real estate investing book, I have been intensely researching this real estate investing method. Overall, it has impressed me a great deal. Tax lien certificates are definitely an alternative to stock investing that all investors should at least consider.

Happy Investing.

Bryan Rundell

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ROGUE INVESTING REPORT
Take control of your financial future!
Issue #15: July 9, 2003
Publisher: Mind Like Water, Inc.
http://www.rogueinvestor.com
mailto:newsletter@rogueinvestor.com

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Table of Contents
1. Feature Article: Tax Lien Certificates and Tax Deeds
2. Stock of the Month: Harley Davidson (HDI)
3. Tip of the Month
4. Real Estate Investing

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Feature Article: Tax Lien Certificates and Tax Deeds
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What happens if you don't pay your property taxes?

The collection of property taxes is a huge priority in every county in the United States. Literally, if the county cannot collect property taxes, they go broke.

To make sure this does not happen, the county places a tax lien on any property with delinquent property taxes and sells the tax debt to investors. This creates a win-win situation for everyone:
the county gets their money, the delinquent property tax owner gets a little extra time to pay their delinquent property tax bill, and the investor gets a low risk, high return investment.

The reason tax lien certificates are intriguing investments is the rates of return they pay in some states. Here is a summary of the annual returns you can make buying tax lien certificates in
the best states for tax lien certificate investing:

** Arizona tax lien certificates pay an annual return of 16 percent per year
** Florida tax lien certificates pay an annual return of 18 percent per year
** Iowa tax lien certificates pay an annual return of 24 percent per year
** Illinois tax lien certificates pay an annual return of 36 percent per year
** Michigan tax lien certificates pay a fantastic 50 percent return the second year.

Investing in tax lien certificates appears to be very safe. State governments control the entire tax lien process so the auctions are fair. The last thing the state wants are unsatisfied tax lien investors. Also, if the delinquent property owner does not pay their back taxes plus interest, the owner can lose their entire property to the investor. This gives the delinquent property owner extra incentive to pay back the investor plus interest.

You buy tax lien certificates by attending tax lien auctions. The auctions are run by the county in which the tax liens are located. In some states, you can buy unsold tax liens after the auction through the mail.

The ROGUE TAX LIEN INVESTOR ebook provides detailed information on every state that sells tax lien certificates. Click here to find out more:
http://www.rogueinvestor.com/government_tax_sales_book.html.

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Stock of the Month: Harley Davidson (HDI)
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I have mentioned Harley Davidson before, but never formally profiled the company. Overall, Harley Davidson represents one of the greatest brand names in America. The word Harley is virtually synonymous with being cool and the company tries very hard to make high-quality motorcycles. Normally, the company is so popular that the stock is too expensive to recommend. However, concern over sales during the aftermath of the Iraqi war have made this stock a bargain. With a P/E less than the long-term growth rate of over 20 percent, and very favorable demographic trends as the baby boomers age into their 40s, this stock looks like a bargain. Also, insiders have been buying back company stock over the last year. I would not be surprised if the stock doubled in value in two to three years if the economy does okay.

HDI quote:
http://moneycentral.msn.com/scripts/webquote.dll?ipage=qd&Symbol=hdi&Funds=1

HDI insider transactions:
http://moneycentral.msn.com/investor/invsub/insider/trans.asp?Symbol=hdi

HDI fundamentals:
http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=hdi

Overall, a great company for a very reasonable price.

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Tip of the Month
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Look for high quality companies with a temporary price decline and you can find great investing bargains.

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Real Estate Investing
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I already profiled tax lien certificates. However, an even more unknown real estate investing secret than tax lien certificates is tax deed sales. In 23 states, when a property owner does not pay their property tax and a sufficient amount of time has gone by (called the redemption period), the county sells the entire property at a tax deed auction. At these auctions, investors can sometimes buy entire properties for only the taxes owed. Overall, tax deed sales are an undiscovered real estate investing area that might interest some investors if they are willing to do some research and find the best properties.

The comprehensive ROGUE REAL ESTATE INVESTOR COLLECTION includes detailed information on two of the most well-kept real estate investing secrets: tax liens and REITs. For more information, click here: http://www.rogueinvestor.com/real_estate_investing.html.

If you have an investing question, email me at roguereport@rogueinvestor.com.

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Disclaimer: There are no guarantees in investing. I make no assurances regarding the investment information presented in the Rogue Investing Report.

Issues of the Rogue Investing Report are archived at http://www.rogueinvestor.com/investor_newsletter.html.

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