The stock market has dramatically outperformed gold as an investment over the long run. However, when investors get worried about the prospects for stocks, they often turn to gold for its reputation as a safe-haven investment. Despite a strong performance for stocks so far in 2019, gold has recently seen its price rise substantially, and some of the precious metal's best days come when investors seem worried about whether the 10-year-old bull market in stocks can continue.

If you want to add gold to your investment portfolio, however, there are multiple ways to do it. Investing in gold coins and bullion ensures that you'll get direct exposure to the ups and downs in the gold market, but doing so involves going to specialized dealers and coming up with ways to store the yellow metal safely. Some exchange-traded funds, such as the SPDR Gold Trust (NYSEMKT:GLD), allow indirect ownership of gold bullion, collecting fees to store and manage the precious metal. Other ETFs, including the VanEck Vectors Gold Miners (NYSEMKT:GDX) and the VanEck Vectors Junior Gold Miners (NYSEMKT:GDXJ), invest in companies that mine gold and other precious metals, and these companies tend to do better when gold prices are strong.

As you can see below, the performance so far in 2019 dramatically favors gold mining company stocks over gold bullion itself.

Data source: Ycharts. Chart by author.

It might seem odd that large-cap gold miners have done better than their small-cap counterparts. In many industries, smaller companies are nimbler and better able to respond to changing conditions. Yet even when bullion prices cooperate, small mining companies often have operational challenges that can jeopardize their long-term financial viability. Even over longer periods of time, the industry's giants have tended to see their stocks have stronger returns than small companies in the mining industry.

Many financial experts don't like physical gold as an investment, including most notably legendary investor Warren Buffett. But mining companies are businesses first and gold plays second, and well-run miners can produce profits that can in turn lead to solid investment performance.

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A Foolish Take: The Best Way to Invest in Gold - The Motley Fool

According to a Nature analysis, private funding of quantum startups in 20172018 more than quadrupled from the two years prior. Companies looking to leverage quantum mechanics for mind-boggling levels of computation pulled in at least $450 million in 2017 and 2018.

That registers higher than flirtation, but compared to investors' more mature loveAI startupsquantum is still a crush. Over the last 10 years, VCs have invested tens of billions into AI startups, which have flourished with breakthroughs in deep learning in the early 2010s.

Investors believe in the commercial possibilities of quantum, a sector that's notched R&D advances and released early-stage commercial products. But quantum is largely unproven and there aren't too many useful, real-world applications yet. The breakthroughs will come when quantum computers start solving problems that today's supercomputers can't (aka quantum advantage).

If quantum upstarts can't commercialize their technology fast enough or bigger firms beat them to the chase, private investment wont continue to scale like it has with AI.

More:
Private Investment in Quantum Reached $450 Million in 2017 and 2018 - Morning Brew

Robin Perches sent her oldest son to Central Washington University this fall to begin his bachelors degree in computer science and art.

The 38-year-old said shes always hoped that her children would see college as an attainable goal an expectation. But she said that dream wouldnt have been possible without the Mollie Davis Scholarship, a local fund supporting its 10th cohort of Yakima students in pursuing degrees this school year.

In 2009, Perches moved to Yakima from the Tri-Cities. She came from a background of poverty and struggle, she said, and turned to a community organization to find housing in her new city. After finding a place to live, she was able to access counseling services and begin work at the YWCA Yakima through a welfare-to-work program, which is aimed at building self-sufficiency among struggling populations.

I came from poverty and had a lot of problems and had a lot of people help me along the way, and so I received a lot of services, she said. As I was receiving services I thought, Well, I want to do that for someone one day.

Perches began pursuing an associate degree at Yakima Valley College while working full time and raising her two sons. Then she heard about the Mollie Davis Scholarship: a fund specifically for Yakima residents pursuing two- and four-year degrees, with a need-based emphasis.

While Perches continued to work full-time to make ends meet, the scholarship helped cover the cost of college courses. She graduated from Heritage University in 2013 with a bachelors in social work and just $6,000 in student loans.

From there, she was hired to work at Yakima Neighborhood Health Services doing outreach with people experiencing homelessness. In May, she will graduate from Eastern Washington University with a masters in behavioral health as her son wraps up his first year of college. Shes proud to able to financially support him as he works to attain his education.

Thats why I really like the Mollie Davis Scholarship, because I feel like its really an investment in Yakima and in educating people here, so that our kids can get educated, she said. Its a generational thing, where hes not going to have to go through the things that I had to go through because I was able to get that bachelors degree.

Ten years of scholars

The Mollie Davis Scholarship began in 2009 after Yakima resident Mary Monroe Davis, known to friends as Mollie, died in 2008 at age 94. While her wealth was largely unknown during her lifetime, Davis left $20 million to be distributed by the Yakima Rotary Trust to local students attending or planning to attend college each year.

The scholarship is need-based, but also takes academic ability and community leadership into account. The program awards up to $7,500 a year and up to $30,000 overall toward a bachelors degree. It awards up to $3,500 a year toward an associate degree.

In June, the 10th group of students received Mollie Davis Scholarships. More than $1 million was distributed to the 44 students, according to Yakima Rotary Trust President Jill Falk.

Over the 10 years, 379 students have received a collective of $7.2 million in scholarships through the fund, Falk said. Roughly 95 percent of recipients renew their scholarships year-on-year. This school year alone, the renewable scholarship is supporting 121 students in various phases of their studies.

Thats a huge number, and no doubt a huge impact on our Valley, Falk said. Theres really little doubt that the program is going to have a long-term impact on the lives of the students, the lives of their families and our community. I think the benefit is immeasurable.

Come back and serve

Jennifer Morales-Mata (Mendoza) grew up spending time at Madison House, a program of the Yakima Union Gospel Mission that serves roughly 500 at-risk youths each week at its downtown Yakima location. In high school, she would volunteer her time there: tutoring, serving dinner or acting as a counselor at summer camps.

In 2014, she graduated from Davis High School with an associate degree. Mendoza went on to study social work at the University of Washington with the help of the Mollie Davis Scholarship. In her junior year of the program, she gave birth to her first son, she said.

It was a huge blessing to get this scholarship, she said. Being able to not have financial stress on my shoulders aside from being a mom and being a student allowed me to complete my bachelors.

Mendoza was able to graduate without debt, which she said gave her the flexibility to continue onto a masters degree in social work. She completed an advanced standing degree in 2018 and has worked as a mental health counselor at Comprehensive Health care in Yakima for a year.

I think its really important for me to come back and serve my community, because I know a lot of the barriers, she said. Its so important for our young people to also be able to do the same to get educated and come back and serve.

Mendoza works with youth with behavioral challenges and their families. Some young people she works with are involved in the juvenile justice system, and many have depression, anxiety and trauma. Mendoza helps them process their struggles and create goals for both the students and their families to work towards to get back on track.

This is her way of reinvesting the Mollie Davis Scholarship, she said.

Im always thankful to Mary Monroe for committing to these students and to our city, she said.

Replenishing investment

Falk said the scholarship has produced teachers, coaches, case managers, nurses and medical technicians, many of whom are giving back to the community as they build their careers.

Rather than depleting as scholarships are handed out, the Mollie Davis fund has grown through investment, Falk said. The Yakima Valley Community Foundation manages the fund, which sits at roughly $25 million today.

This year, the Rotary began measuring the proportion of first-generation college students receiving the scholarship, she said. Roughly 80 percent identified as first-generation college students.

That was just amazing, because a college education is valuable to all of us in so many ways, but if youre the first in your family to go to college, theres such an impact for that student, their family, their siblings and future generations, she said.

Yasmine Mendoza-Espinoza is among the first-generation student recipients.

The 22-year-old was one of three siblings raised by her grandparents in downtown Yakima before taking guardianship of her now-15-year-old brother a couple of years ago.

Growing up, she too was a participant at Madison House, went on to work for the organization and now volunteers there. She said the program leadership inspired her to become a teacher so she could in turn invest in at-risk youth.

I really wanted to be that support system an advocate for students to get through their education and (to) be that role model that it is possible to overcome those obstacles that were placed in front of you, she said.

Mendoza-Espinoza is in her final year of a bachelors in elementary education and a K-8 certificate at Yakima Valley College. This is her second year receiving the Mollie Davis Scholarship, which is her largest scholarship.

It has helped me tremendously, just being able to pursue my education and not having to worry so much about being financially responsible to pay for my education, she said.

Between classes, she supports her brother, works two days a week as a third grade student-teacher at Cottonwood Elementary School, another three days as a paraprofessional at Lewis and Clark Middle School, and is an assistant volleyball coach at Eisenhower High School. In the spring, she coaches volleyball at Wilson Middle School.

A lot of what I do, I do to be a role model for our community, Mendoza-Espinoza said, adding that she wants to ensure her younger brother has the resources and opportunities to succeed in school and life.

In June, she will graduate and hopes to teach at the middle school level, where she feels students have the highest need for academic and social support. Eventually, she wants to get a masters degree to teach at the high school level. But regardless of the age group, she wants to help support students in Yakima, as the Mollie Davis Scholarship has done for her.

This is my home, and its given me so much, she said. Now its time for me to return the favor.

The rest is here:
10 years of the Mollie Davis Scholarship: A replenishing investment in education - Yakima Herald-Republic

Ken Fisher, Special to USA TODAY Published 7:01 a.m. ET Oct. 6, 2019

Ex-NBA star Kobe Bryant, now a business executive, and Jeff Stibel, both co founders of Bryant Stibel, talk investing. USA TODAY

The dead sometimes speak louder than the living.

That's especially true when it comes to investing, markets and the economy,topics that generate many opinions from living people, few of which are useful.

I find it's better to ask the deceased what they think. With that in mind, Ive profiledseven departed legends whose views should always remain at the top of your mind when you want advice aboutinvesting. The more you study these people, the better you'llfare.

Neff: Bragging means selling

John Neff, the last of the legendary mutual fund managers, died June 4. His 31 years running the Windsor Fund, part of Vanguard, averaged 13.7% annually to 1995, more than doubling a comparable S&P 500 investment. How did he do it? Neff avoided fads and focused on fundamental firms and value, seeking to buy stocks cheaply compared with their intrinsic worth. That is a timely reminder since value investing is now long out of fashion. It will return someday.

Neff said things like, When you feel like bragging about a stock, its probably time to sell.

John Bogle in his Malvern, Pa. office on April 12, 2007. (Photo: EILEEN BLASS, USA TODAY)

Key dates for your finances: FAFSA and other money deadlines

Don't sabotage your retirement: 3 expensesto avoid.

Graham: Father of value

Neff, like Warren Buffett, derived from the Ben Graham school of value investing. Buffett is often depicted as 85% Ben Graham (the other 15% being Phil Fisher, see below). Graham is often called, the father of value investing. If you have time for just one investing book, make sure it's Grahams classic, "The Intelligent Investor." Grahams key takeaway? Heeding value provides a margin of safety and higher returns, although those returns are irregular over time. That's becausemost investors oversell and underappreciatewhat isnt faddish and hasnt worked recently.

T. Rowe Price & Phil Fisher: Growth gurus

The reverse thinking came from the two fathers of growth stock investing, Thomas Rowe PriceJr. and Philip Fisher (disclosure: my father). These twoare considered the first major voices claiming that a firms future growth prospects mattermuch more than the current perceived value. Both deployed rigorous, varied disciplines for verifying small firms that would grow fast longer term. Price is best known for founding mutual fund giant T. Rowe Price Group. Fishers legendary book, "Common Stocks and Uncommon Profits," was the first investing book to ever grace The New York Times best-seller list. Price and Fisher, if active now, would both be riding high in this growth-oriented bull market.

Bogle: Passive champion

Vanguards Jack Bogle taught the world that most people will do better if they focus on neither growth nor value but instead become passive investors through an S&P 500 Index Fund. Beating the market requires that you knowsomething useful others dont. Do you?

If not, Bogle provided a ready path: Combine growth and value passively and match the market withouttrying to beat it or accidentally lagit. He knew most investors lag the market by in-and-outing the wrong things at all the wrong times. Since most money managers have lagged markets for years, Bogle would also ride high right now.

Loeb: Be a skeptic

Gerald Loeb was an early contrarian investing voice, believing that if too many investors thought something would happen, it was already priced into the market and wouldnt happen. He was an active trader, book author, columnistand sometimes called the most quoted man on Wall Street. Some of Loeb is usually in my writings.

He also established the gold standard of awards for excellence in financial journalism, the Gerald Loeb Award. Loebs key takeaway? Always invest, but be skeptically skittish because nothing endures.

Ponzi: Sounds too good to be true

Charles Ponzis legend lives on, quite infamously:thePonzi scheme is his namesake. Studying his schemes teaches to avoid being a victim of them. When a deal sounds too good to be true,it isnt true. Risk is real and everywhere. So are fraudsters.

Ken Fisher is founder and executive chairman of Fisher Investments, author of 11 books, four of which were New York Times bestsellers, and is No. 200 on the Forbes 400 list of richest Americans. Follow him on Twitter: @KennethLFisher

The views and opinions expressed in this column are the authors and do not necessarily reflect those of USA TODAY.

USA TODAY's Janna Herron explains the theory behind the FIRE movement - Financial Independence, Retire Early USA TODAY

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If you want smart investing advice, check out these 7 legendary Wall Street thinkers - USA TODAY

Yes and but.

Those two, little, three-letter words pair together like salty and sweet.

Yes, this is a good financial investment, but past performance is no guarantee of future results.

Both can be true. The question is, does the but disprove the yes?

If it did, no one would invest. Instead, experience and experts teach us to save wisely with a humble awareness of factors outside our control. Yes, portfolios tend to grow with disciplined investment of money. But sometimes there are recessions.

Yes and but give us a way to categorize opposing facts. Thats as helpful with the stock market as it is with faith, because investing our trust with God involves a lot of yes and but.

Yes, God is a good God. But a lot of bad things happen. Innocent people are convicted. Guilty people go free. Healthy people are diagnosed with terminal diseases.

Yes, God is in control. But the world is volatile. Floods rise and sweep away life. Nations rage against nations. Violence escalates to frightening levels.

Yes, God can be trusted. But sometimes we trust Him and life gets more difficult. We trust Him with our career but the promotion goes to someone else. We trust Him with our children but they rebel. We trust Him with our money but we cant make ends meet.

All these can be true. The question is, does the but disprove the yes?

If it does, then God is a bad investment.

If you read Gods prospectus, the Bible, youll notice God isnt afraid to teach us both words.

One helpful example is the story of a loving father whose child was afflicted by evil. He was a dad living in the tension of yes and but. Yes, he loved his child. But evil was destroying him.

He took this unsolvable problem to Jesus and explained how nothing up to that point had worked.

But if you can do anything, have compassion on us and help us.

Jesus gently reminded the dad that this was not a question of if, and that anything is possible for those who believe.

Immediately the father of the child cried out and said, I believe; help my unbelief! (Mark 9:22-24)

I can relate to the kind of faith that says, Yes, God, I believe. But what youre saying is impossible. Help me to believe. Jesus is not offended by that kind of honesty; He respects it.

You see this in the way Jesus responded to the honest father. Yes, those nearby thought the child had died. But Jesus took his hand and helped him up.

Yes, God has that kind of power. But He doesnt always act in the way we expect He should. Jesus knew this first hand. Yes, His own loving Father had the power to take away the suffering of the cross. But Jesus still suffered and died.

Does that but disprove the yes?

Actually, its the opposite. His suffering proves Gods sacrificial love for us.

He is Lord of both yes and but, which means we can trust Him even when we dont see how Hes going to make things right. Faith grows well in a diversified portfolio that has a healthy balance of yes and but.

Yes, Jesus died, but God raised Him from the dead. He offers that powerful hope to those who say yes to Him by faith. But with Jesus, unlike the stock market, past performance does guarantee future results.

Gregg Madsen is the Lead Pastor of Steadfast Gretna. Reach him at gmad sen@steadfastgretna.org.

Original post:
Investing in a balanced portfolio of yes and but - Omaha World-Herald

ALLEN PARK -- Sacks are to defensive ends what interceptions are to defensive backs. Theyre certainly important, and you expect them when you pay elite money. But they only begin to tell the story of how a player has performed.

Take Trey Flowers, for example.

He was lured to Detroit by the idea of re-uniting with Matt Patricia, sure, but that $90 million contract helped too. It was more money than anyone else paid for any free agent this year. And for that kind of price, you expect to see some sacks.

But by that measure, Flowers -- with one sack in four games -- has been quiet through his first quarter-season in Detroit. And even that came on a desperation final play of the first half against Philadelphia, where Carson Wentz decided to tuck the ball and go down rather than force the issue downfield. Flowers touched Wentz with his left hand, so he got credit for the sack. And thats it.

He has been productive in other ways, though.

After pressuring opposing quarterbacks just five times in the first two games of the season, Flowers has racked up 10 pressures in Detroits last two games alone, making life a little more uncomfortable for Wentz and Kansas Citys Patrick Mahomes, the latter of whom had his worst game in his last 16 appearances against Detroit.

Flowers also forced one fumble against the Chiefs, and is now ranked inside the top 20 edge rushers in the game according to ProFootballFocus.

Hes a hard-charging -- really, a hard-charging, hard-playing (guy), defensive coordinator Paul Pasqualoni said. The effort level -- his effort level is up there. I think he kind of silently goes abut his business. Hes had some really good production, really contributed. Maybe not always the fanciest deal, but really a good player.

Flowers four-game debut is not entirely dissimilar from his time in New England, where he never put up big-time sack numbers -- he ranged from 6.5-7.5 sacks his last three years there -- but was highly disruptive. Last year, for example, he finished with 7.5 sacks. That ranked 34th in the league. But he also racked up more pressures than everyone except Dee Ford, and did it while lining up across the defensive front.

That was part of the draw for Detroit, which has installed the New England defense under Matt Patricia and now favors the same kind of versatility in its defensive linemen. Through four games, theyve used Flowers at seven different positions according to ProFootballFocus, mostly at right end, but also at left end, on the nose and, for one snap, slot cornerback.

He started slowly the first couple weeks, perhaps not a surprise given all the time he missed in the offseason. He missed OTAs and minicamp while recovering from shoulder surgery, then opened training camp on the physically unable to perform list. He didnt start practicing until Aug 10, and was extremely limited for a while after that.

So he needed some time to get comfortable. But the production has ticked up the last couple weeks, helping lead the way for that highly anticipated defensive front, and there is optimism around Allen Park that his best football isnt far away.

Working on it, Flowers said, when asked recently how he felt hes played.

And if hes able to get there, that defensive front -- so highly anticipated coming into the season, but dogged by injury and production issues in the first quarter of the season -- might finally realize its potential.

Just get 'em all healthy, you know? Pasqualoni said. Get Mike Daniels back, get DaShawn (Hand) in there, just get 'em all together, hopefully as we start this next quarter of the season. Theyll (hopefully) all be available, start developing those guys together.

Read more here:
Lions big investment in Trey Flowers starting to yield returns - MLive.com

In our story At what age do people become millionaires in Charlotte? we shared that on average, Charlotte millionaires hit $1 million in net worth at 41.5 years old, and the average net worth of those people today is $4.64 million. We also explored how people invest and spend that money.

Most survey participants accumulated their wealth by starting their own company or working a high-paying job, investing in real estate, taking advantage of stock options, 401(k) plans and living below their means.

Real estate was the respondents No. 1 investment, although nearly all said they invest in multiple ways to create a diverse portfolio.

We have numerous plans. IRAs, SEP, two active 401ks, 529s for each of our three kids, and we just opened a stock plan, one respondent said. We max out everything we can on our 401ks and have monthly deposits into the others. Weve tried to maintain our standard of life even when our income has jumped. We are also putting money into our house. We bought low in a good neighborhood and have been adding on (paying in cash). We have a low mortgage and a high home value because of it.

Some people went more in-depth with their responses. A handful explained they started by investing in stocks, and as soon as they accumulated enough money they moved into real estate.

Now, I have friends who run hedge funds and private equity shops who have given me smaller allocations than they would normally take, one said.

This is important, they said, because you dont have to have it all at once or make a giant investment to see a return; you can start slow and gradually build a more diverse portfolio (even if you dont have friends who run hedge funds).

I dont track them. My assistant does, one said. Another said, I have always tracked my money, starting with Quicken in the 90s, and now using Mint on-line as well as the personal finance hub through Fidelity.

Quicken and Mint were mentioned most often among programs used to track spending, but plenty of people said they just use an Excel spreadsheet they made.

A few said they put all expenses on their credit cards and pay them off monthly, so they are aware of their spending and will look further into it if they feel theyre over-spending or need to make adjustments.

Yes, all purchases are made on cash-back credit cards. I then export those transactions into Excel, which I then plug into a budgeting spreadsheet I made a long time ago. The spreadsheet automatically recognizes the transactions and puts them in the correct budget categories and months.

Of those who said they dont track now:Not on an everyday basis, but taking the big-picture approach. I did track expenses in more detail when I was younger and trying to be more disciplined.

There was also plenty of advice like this:

No one said they got to where they are by skipping lattes, but sacrifice was a theme of the responses.

I obviously think its dumb to fund a luxury lifestyle with debt, but theres nothing wrong with a luxury lifestyle itself. I drive a Tesla but I paid cash for it after eliminating debt and fully funding all tax advantaged accounts.

Several people mentioned driving average cars they were able to pay for with cash or pay down quickly.

Be smart in buying cars. We never had car debt and hold our cars for ten years or more. And, buying two- or three-year-old cars is a great way to get quality and technology without paying too much, one person said.

And a couple of people said they still find a lot of value in sales and penny pinching.

My parents came from nothing, one wrote. We learned to save, use coupons we literally cut from the newspapers, wait for sales, share meals, and never overspend. Though I am more financially comfortable I find myself doing the same to this day. I will wait until that shirt goes on sale, I dont find it necessary to stay at the five-star resorts when I travel, I still sit in the nose bleeds at sporting events, and I always give back what I can. Maybe that will change in the future but money doesnt define a person.

We also asked our respondents a few lighter but still revealing questions, including their favorite restaurant.

Three of Bruce Moffetts restaurantsreceived the most mentions: Barringtons, Good Food on Montford, and Stagioni.

The other most popular picks were Beef n Bottle , Bardoand Peppervine.

Chick-fil-A also received an honorable mention from one respondent illustrating the range of tastes within the upper echelon.

The number next to each response is their net worth.

Best purchase under $100:

Spotify. Great music and podcasts help me to burn stress and relax. $20 million

A good cup of coffee. $8.5 million

Most recently my Roku so that I could cut the cord on cable and save $175 a month! $5.2 million

A rescue dog. $2 million

Gym membership. Stay healthy. Socialize with friends. $5 million

The cushions to fit over the crevices in my car to keep crumbs from falling in hard to reach places. Its a Shark Tank invention. $2.4 million

Power wine aerator. Makes enjoying wine more enjoyable after a stressful day. Great conversation piece too. $2 million

Notebooks. As much as I want to use digital lists, theres something for me about a paper notebook. I create lists for work, home and the kids and it definitely helps me keep my sanity. That and paper calendars! $1 million (many people said notebooks)

Good sunglasses, they are just fun. $4 million

Omg. My Swiffer. I mean its awesome. $16.99. Lasts 10 years and makes life easier. $3 million

Fresh fruit and vegetables each week. Money is worth less if you are not healthy. $3.5 million

Griottine cocktail cherries: $20 for a big jar! They enhance any Manhattan. $1.7 million

Lululemon sweat pants they make me feel relaxed and appreciative. $2.5 million

Shares of Microsoft stock due to their increased value over time. $4.5 million

My Fitbit. It motivates me in ways I never would have expected. $1.5 million

The book Rich Dad, Poor Dad. It totally changed my perspective on money. $2.5 million

Sitters for Wednesday night date-night when the kids were little. $1.3 million

Yoga mat yoga is my therapy & one of my greatest joys. $3 million

Amazon @ $30/share in 2000. $2 million

A stay at the Disney World Camp Grounds in the 80s you received all the same access as the fancy resorts and it was a great campground. $2.5 million

Golf. Leisure. $2.2 million

That 3-pack of Juicy Jay crowlers was pretty good. $1.5 million

Locally roasted coffee, saves money compared to Starbucks and the coffee tastes better. $2.8 million

Trayana Earbuds. Same performance as airpods, under $50. $1.3 million

Monthly gym membership mind and body need to be right for success. $1.5 million

My first set of golf clubs. Ive made a lot of friends on the golf course. $1.1 million

Kate Spade bag at her outlet store in Palm Springs. I use that bag almost everyday for the last 1.5 years. Talk about return on investment! $1.6 million

I buy a lot of my work clothes at Goodwill for $1-$5. Trust: I look good and no one knows. Brand names with perfect fit for a dollar, not kidding. I dont waste hours looking, though. Ill glance in a GW every now and again and if theres a bunch of stuff in my style and size Ill stay and try things. People donate in batches and when it rains it pours. I usually get about a dozen perfect items at once or nothing. And I cant even tell in my own closet what was full price (I do shop full price when convenience matters) and what was $1. $2 million

My marriage license. My spouse and I generally work to prevent us from acting on our worst impulses. $1.7 million

Milk frothier from Williams Sonoma. Makes early mornings less painful. $1.2 million

WSJ subscription: pays dividends everyday. $5.2 million

Electric toothbrush so I can have that million dollar smile. $2.83 million

Date night (although its hard to stay under $100 these days). Its important to invest in your marriage. $1.5 million

Picnic basket. Encourages quality time with my wife. $1 million

TSA Precheck, I cannot begin to put a value on the peace of mind being able to bypass most airport security lines. $1.1 million

A $3 box of Now & Later candy that I took to school separated to sell individually and came home with $9. My first business was born. $1.4 million

Monthly deposits for children into their own mutual funds. $1.7 million

Salads every night for dinner it keeps me healthy and I dont have to cook. $2 million

Gave $100 to someone who needed it. $1.6 million

Best purchases over $1,000:

My first hotel. $125 million

House because it appreciates. $20 million

My condo. I love the view. $20 million

Espresso machine. Other than my cars, the only item I use daily. $25 million

Our mountain retreat. Its our getaway where stress is not allowed. $16 million

2011 Jaguar XJL Supercharged, cause I loved it! $8 million

A business I bought in 1999 it failed but it taught me that I could build something up. $10 million

Sailing lessons. $8.5 million

New business equipment. It extended the life of my employees and gave them a sense of pride. $7 million

Therapy sessions (to help me overcome a traumatic experience). $5 million

I would say travel with my family. Things are forgotten, but memories last a lifetime. $5.2 million

Our dog. $2.4 million

Rolex timeless, lasts forever. $3.5 million

Our home, we raised our family in a house that fit our lifestyle. $3.8 million

Strategically located land in Charlotte when no one wanted to hold real estate (especially land). $1.6 million

My golden retriever puppy hes an incredible companion and is almost certainly why those 25 year-olds are flirting with me! $7 million

Tesla. Its an amazing piece of engineering and technology. $3.45 million

Oriental rugs because it is important to surround yourself with things you love $6 million

Trip to Europe for my husbands 40th birthday. The memories are better than anything tangible I could have bought him. $2 million

House in Plaza Midwood in the late 1990s. We love living here and it has appreciated with the growth of the neighborhood. To me the most important purchases are things you use every day. $3.4 million

Custom suit look good when you need to. $3.6 million

My airplane. Besides being fun it allows us to travel and see family and friends we may not otherwise see. $1.54 million

Engagement ring ($10k). She is my everything and a big part of the reason we have financial wealth. $2.2 million

My boat. It allows me to get away from the stress of everyday life. $1.5 million

Probably our house. We purchased it at 24 and 26 in an area as close to Uptown as we wanted to spend (note, we set our own budget which was $150k under what we were qualified for). The neighborhood has steadily improved and now we have quite a bit of equity. $1 million

Help around the house cleaning service, yard service, etc you dont want your home to feel like a to-do list after youve been at work all day. $1.3 million

Husbands golf clubs same reason as my yoga mat! When you have a stressful job, find something that you love & brings you peace. $3 million

Every one of my top five vacations. Seeing the world expands your knowledge and awareness. $2.03 million

Cant think of anything Ive bought for over $1,000, other than my car, special vacations, etc. We dont purchase luxury items, we dont try to keep up with the Joneses. $1.5 million

Wedding ring, because marrying the right person is the best investment you can make in life. $8.3 million

The Big Green Egg. The meats. $1.3 million

I spend about $5k on travel every year. The big trips, not the weekends away or going home to visit friends and family. I dont skimp on that stuff. Thats why I do what I do. To be able to travel like I do but even more. I guess also all of the house upgrades (and the house itself). I only make the changes I really want in my house/life so they are true value adds. But you live in it, so spend money on the places where you spend time. I didnt upgrade my kitchen because honestly I dont spend a lot of time there. But the living room and master bath feel like home, feel like extensions of me. $2 million

My first car because it represented my complete financial independence from my parents . $1.7 million

Backyard remodel (patio/fireplace). $1.5 million

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How do Charlotte millionaires spend and invest their money? And what's their best purchase under $100? - Charlotte Agenda

On Tuesday, October 1, U.S. Agriculture Secretary Sonny Perdue made a grave statement about the lifespan of the countrys small dairy farms.In America, the big get bigger and the small go out, Perdue said after attending the World Dairy Expo in Madison, Wisconsin. This extends to all types of small farming enterprises in the U.S., from fruit and vegetable to grain and livestock, which struggle to make ends meet.

Almost all of the funding from agriculture comes through government policy [and] direct lending, either through the government or bank programs, and those programs arent flexible enough for the smaller, sustainable farms, says Dan Miller, founder and CEO of Steward, a new online crowdfunding platform where individual investors can put money into modest, regenerative farmsand eventually get a return on their investment.

So far, Steward has invested more than $2.2 million across 16 different farms, mostly in the U.S. (though one is a vineyard located in Switzerland). Anyone in the U.S. can invest as little as $100 via an SEC regulated process in what is currently the Steward Farm Trust, a portfolio of loans made to the 16 farmers using Steward. Those who put money into the trust will receive dividends paid from the interest payments on those farmers loans. Shortly, were going to roll out individual investments, so people will be able to invest directly in a single farm, says Miller.

Individual investments so far have ranged from the $100 minimum (from the millennial customer who sees it online, says Miller) to the more traditional investors, who provide as much as $500,000. Investors come from all over the U.S., says Miller, from San Diego, California, to Lawrence, Kansas.

Miller initially got the idea for Steward while working on real estate development projects in Washington, D.C. We were buying buildings, renovating them, and leasing to chefs, he says. A lot of those chefs were younger chefs who were sourcing direct from farmers. Miller ended up meeting some of those farmers and learning how difficult it was for them to access fundingeven when their premium products were largely prized and in demand from local chefs and consumers.

One of those farms is Beilers Heritage Acres, a certified organic grain and dairy farm run by Amish farmer Omar Beiler in Lancaster County, Pennsylvania. His farm spans 110 acres (just under half of which he owns), and its produce winds up in multiple restaurants, including the James Beard award-winning Woodberry Kitchen in Baltimore.

Small dairy farms, as Agriculture Secretary Perdue pointed out, have been struggling financially. Prices have dropped, and theres been an oversupply, says Miller. So we funded that farmer to buy . . . processing equipment, so that he could make butter and cream and sell that to the restaurant. Stewards loan amount to Beiler is $150,000.

Others farms Steward provides loans for include a one-acre urban farm in Detroit, a sustainable livestock farm in Louisiana, and a hemp farm in Oregon. In order to qualify for Steward loans, farms just have to be sustainable and regenerative, both ecologically and in terms of how they operate their businessthey need to be able to support themselves independently.

Though Steward-supported farms are mostly located in the U.S., Miller has plans to expand abroad. As weve tested the model and marketed in other countries, theres been a lot of demand and interest, he says. Its heartening that theres so many people doing this good work, but it also means theres obviously a big gap for funding and much need for that capital.

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Steward lets you help small farms by investing - Fast Company

During years of rampant speculation leading up to the dot-com bubble in the late '90s and 2000-2001, many technology stocks belonged to risky companies unable to turn a profit. Today, however, the tech sector includes companies across the whole spectrum of financial and operational health, from those still striving to become profitable to established cash cows like Apple and Facebook.

Sure, tech stocks are still more volatile than those in more established sectors like utilities and consumer goods, but as long as investors are willing to embrace more volatility, there are some stellar businesses -- and potentially highly rewarding stocks -- to invest in.

The sector, therefore, is worth exploring in detail. By fully understanding what the tech sector entails, including its opportunities and threats, the type of stocks that it includes, how to value a tech stock, and more, investors will be well positioned to identify and invest in the industry's most promising stocks.

Image source: Getty Images.

Tech stocks are the publicly traded shares of companies engaged in selling technology-based services or products. In other words, they represent shares of ownership in technology companies available to buy or sell on the stock market.

Stocks in this sector range from those in older technology industries, such as telecommunications and personal computers, to those in more nascent segments, such as software-based internet services and online social networks.

Their business models vary substantially as well. Some companies manufacture technological equipment, such as routers and computer processors. Others design products but outsource manufacturing. Furthermore, modern organizations have adopted creative ways of selling technology services, including offering subscriptions to cloud-based applications, providing access to online networks in exchange for ad-supported experiences, charging fees for online transactions facilitated through online marketplaces, and more.

There are many ways to break down the tech sector, but perhaps the most useful way for investors to look at the market is through the lens of four types of businesses: software, hardware, internet information, and telecommunication.

These companies make money from selling the programs used by computers. Historically, software was often sold on an la carte basis. More recently, however, customers are increasingly paying for subscription access to software made available over the internet. This business model is often referred to as software-as-a-service, or SaaS.

These companies sell both components for technology products and the finished technology products themselves. Examples include semiconductors, servers, computers, smartphones, consumer electronics, computer peripherals, and data storage devices.

These companies make money from providing content, networks, and marketplaces on the internet. Yelp, for instance, provides both a platform for connecting users with local businesses and information about those businesses. eBay, for another example, provides an online marketplace for users to buy and sell goods on the internet.

This industry includes companies that enable communication, primarily through telephone, data, and video. But companies that connect the world through satellite, radio, television broadcasting, and internet usually fall into this category as well.

Looking beyond this 10,000-foot view of the tech sector, investors who want to buy stocks in this space should be familiar with some of the biggest trends in tech stocks. The following 10 tech trends provide investors with themes to look for as they decide what companies they want to invest in.

Software-as-a-service (SaaS) companies charge customers a subscription or a usage-based fee in exchange for providing access to cloud-based software applications. Many SaaS companies provide software for enterprises, including sales, customer relationship management, inventory management, accounting, and workplace collaboration platforms.

Financial technology companies provide software-based solutions for various financial services. Some examples include mobile banking, digital payments, peer-to-peer mobile payments, and online budgeting and accounting software. Fintech companies often operate with SaaS business models or take a cut of the transactions made on their platforms.

Social media give users access to an online network for connecting friends, family, groups, colleagues, and organizations. Facebook, of course, is the perfect example of a social networking company. Monetization models for social networks vary, but primary approaches include digital advertising, subscriptions, and a hybrid of these two.

The Internet of Things (IoT) refers to internet-connected and software-powered devices. Thanks to technology and continuous improvements in high-speed wireless internet, once-ordinary products such as refrigerators, garage door openers, and healthcare devices now have enhanced capabilities and can be controlled through software via the internet. Internet of Things companies sell these connected devices and sometimes provide software services to assist them.

The convergence of the ability to store massive amounts of data, the continuing evolution of deep learning algorithms, and advancements in graphics processing unit (GPU) computing have brought about an era of artificial intelligence (AI). AI technologies and services can learn, adapt, improve, and act on their own. Examples include voice assistants, self-driving car technology, customer service chatbots, and more. The most relevant companies in this space are the semiconductor companies involved in building the computing power for the evolution of AI. However, AI is quickly finding its way into many different fields, including transportation, risk management, investing, and more.

E-commerce refers to selling physical and digital goods and services online. The most direct beneficiaries of e-commerce trends are online retailers, online marketplaces that enable other businesses to sell their products, and companies that provide platforms for businesses to build their own online shopping experiences for their customers.

Connected TV refers to television streamed over the internet. This space is fast growing because consumers are shifting more of their viewing time to streaming TV as content publishers and advertisers respond to this trend. While Netflix is the most obvious example of a company benefiting from connected TV, many companies have flocked to the space with a wide array of business models.

One of the ways businesses are profiting from connected TV is through digital advertising, or advertising online. It stands to reason that advertisers ultimately want to spend their dollars where the consumer is. Growing smartphone usage, combined with consumer adoption of streaming TV, video, and music services, means that marketers are ramping up their spending on digital ads. Some of the biggest beneficiaries in this market are companies with platforms that help marketers buy and sell ads digitally. However, content publishers also benefit from the revenue produced by ads that run in their content.

Cloud computing refers to the delivery of computing services over the internet. These services come in many forms, including off-premise servers, storage, databases, and networks that can be accessed through the internet. The value proposition for cloud computing companies is that businesses can pay for their usage only, helping organizations never over- or underinvest in their computing capacity.

Semiconductor companies are involved in different aspects of manufacturing, designing, and selling computer processors, such as central processing units (CPUs) and graphics processing units (GPUs).

Two key tailwinds in the tech sector are organizations' digital transformations and the adoption of e-commerce across sectors.

Companies across all sectors are embracing technology in one aspect or another to better their businesses. Cloud computing, AI, and cloud-based software platforms are enabling organizations to improve everything from streamlining back-end operations to making better connections with customers. This embracing of technology across organizations is referred to as companies' "digital transformations."

A wave of nontech companies undergoing these digital transformations is benefiting many tech companies. This is helping supplement demand for cybersecurity, business software, data and analytics, fintech, cloud computing, and AI solutions.

E-commerce remains a major tailwind for many technology stocks. Companies in essentially every sector are embracing e-commerce in one form or another. For instance, airlines are selling tickets on their websites and on third-party travel-booking platforms; brick-and-mortar retailers are implementing digital strategies; and restaurants are rolling out online loyalty programs and delivering food through third-party food-delivery apps.

Some of the tech industries directly or indirectly benefiting from the rise of e-commerce include fintech, business software, cloud computing, and even digital advertising companies.

Two key headwinds for tech stocks are high employee turnover and lower barriers to entry.

According to 2018 data from LinkedIn, employee turnover in tech (software in particular) is higher than in any other industry. The turnover rate in software-related jobs is 13.2%, according to LinkedIn. Turnover rates at jobs in other major industries include 11.4% in media and entertainment and 10.8% in both financial services and telecommunications.

The problem? High demand for tech workers and rising competition within the industry, says LinkedIn's Paul Petrone:

[A]s employers and offers get more competitive, top talent is more eager to jump on new opportunities. The numbers support this theory -- according to LinkedIn data, almost half (49%) of departing tech employees take another job within the tech sector.

While employee turnover itself can lead to issues in building and maintaining a stable team, a greater underlying problem that the competitive environment for tech employees creates is the need for organizations to offer attractive compensation packages, often including stock-based compensation on top of regular salaries. As a result, meaningful stock-based compensation has become a regular business expense at companies like Alphabet and Facebook. For some companies, this can result in significant shareholder dilution over time as the number of total shares increases as a byproduct of share-based compensation.

Capital-intensive industries, such as the auto business, airlines, and railroads, often require significant up-front investment in factories, machinery, and real estate in order to enter the market successfully. This gives incumbents somewhat of a competitive edge, as there are high barriers to entry for new entrants.

On the contrary, for many technology companies -- particularly software providers and internet information providers -- start-ups can morph into significant competition for incumbents in a very short period of time, and often with a surprisingly small amount of capital. Barriers to entry in some technology industries, therefore, are low.

On a similar note, this means large and well-capitalized technology giants such as Apple, Alphabet, and Microsoft can easily deploy new software-based services that could threaten smaller technology companies.

While there are things that are particularly important to look for when analyzing tech stocks, the same fundamentals used for investing in any stock are still applicable. For instance, investors should ensure that a tech stock they are interested in has:

Beyond these fundamentals, other metrics and characteristics that are particularly important for tech stocks include gross profit margin, operational leverage, a broad customer base, and revenue growth. Here's a look at how investors can check out these factors when analyzing a tech stock.

Because the business models in tech vary so greatly across industries (and even within industries), one company may make a significantly different amount of gross profit (revenue minus the direct costs of producing a good or service) on their offerings than others. To put a company's gross profit into perspective, divide gross profit by revenue to get a metric called gross profit margin.

Gross profit margin gives investors insight into the economics of a company's business. The higher the gross profit margin, the more lucrative the company's business model is, as long as it can maintain low operating expenses (incurred expenses that are not directly associated with the goods or services a company sells, such as sales, marketing, and administrative costs). The best technology companies often have gross profit margins that are superior to peers in the same industry.

While many tech companies -- especially software providers -- have high gross profit margins, a large portion of their spending may fall under operating expenses. If operating expenses do represent a large portion of revenue compared to peers, investors should look for evidence of operating leverage.

Operating leverage is present when a company's revenue grows at a faster rate than its operating expenses. This leverage from outsize revenue growth means that, over time, more of the company's revenue will fall to the bottom line, or its net profit after all expenses. When a technology company has operating leverage, the company's business model is considered scalable. In other words, the business's economics improve as revenue increases.

Operating leverage is particularly important when a technology company is not yet profitable on its bottom line. With the help of operating leverage, an unprofitable tech company has a clear path to profitability, as long as revenue can keep growing.

Investors should look at a tech company's customer base. Some tech companies -- such as hardware providers (particularly semiconductor companies or manufacturers of electronic parts) or companies providing software to businesses -- may be highly reliant on a few large customers for a significant portion of their revenue. If the loss of a single customer can have a material impact on the company's business, then it is a risk for shareholders. Investors, therefore, should ensure that business-facing technology companies have an extensive portfolio of clients.

Another key metric often used when analyzing tech stocks is revenue growth. Because many tech stocks are in high-growth industries, quarterly year-over-year revenue growth rates are often closely watched by Wall Street.

Investors can often get an idea of a company's momentum by looking at its trends of revenue growth rates over multiple quarters. For instance, when year-over-year growth rates are higher in one quarter than they were in the previous quarter, the company is seeing accelerating growth. Conversely, a lower growth rate in the current quarter compared to the previous one means the company is seeing decelerating growth.

An accelerating growth rate is often indicative of a strong tailwind or catalyst for the business. When investors see this trend, they may want to do more research to see what is behind this momentum. On the other hand, decelerating growth rates could suggest a tailwind or catalyst is losing its luster; while decelerating growth is not always bad, investors should be aware of why growth is slowing down.

For the most part, investors should approach valuing tech stocks in the same manner they would value any stock. A price-to-earnings ratio, or the ratio of a company's share price to its earnings per share, can give investors an idea of how the stock is priced relative to its underlying profit. Similarly, a price-to-book ratio, or the ratio of a stock's price to its book value per share (assets minus liabilities divided by shares outstanding), helps investors understand the premium a company's stock price commands relative to its underlying book value. Investors can look at these common valuation metrics for a given company and see how they compare to its industry peers.

But there is one metric that may be particularly useful when valuing tech stocks: price-to-sales, or the ratio of a company's market capitalization (shares outstanding multiplied by share price) to its total sales. This metric helps investors view the premium at which a company trades relative to its sales. A high price-to-sales ratio relative to peers usually suggests that investors think sales will grow faster than its peers' will. A lower price-to-sales ratio, therefore, is usually evidence that the market believes a company's sales will grow slower than its peers'.

While the price-to-sales ratio is far from perfect, it's useful when comparing members of an industry to one another. For instance, an investor can compare a given company's price-to-sales ratio to the average price-to-sales ratio of stocks in that industry.

A price-to-sales ratio is especially useful for many tech stocks because tech stocks within the same industry can be at dramatically different stages of profitability due to the high operating leverage some tech stocks have. For example, an upstart in fintech with $200 million in revenue is likely not yet profitable. Meanwhile, a more established fintech company with $15 billion of annual revenue may be bringing in $2 billion of profit every year because it has scaled its business enough to achieve meaningful profits. In this case, comparing the two stocks' price-to-earnings ratios would not help. Looking at their price-to-sales ratios, however, could prove to be more useful when trying to understand how the market has priced these stocks relative to their underlying businesses.

Two of the biggest opportunities for many tech stocks are the subscription economy and the integration of technologies into new business models.

An interesting opportunity in tech is what is being referred to as the "subscription economy." Zuora, a company that is at the heart of this trend as a provider of technology that enables companies to transition to subscription-based business models, defines the subscription economy as "the idea that customers are happier subscribing to the outcomes they want, when they want them, rather than purchasing a product with the burden of ownership."

Technological advancements are making it easier than ever for businesses to offer customers subscription options to get access to both digital and physical goods.

Many new technology companies exist due to the careful integration and combination of a handful of key technologies. As software becomes more powerful (thanks to innovation and iteration in computing and programming and faster wireless data transfer speeds), there are always new ways to implement software to solve problems or create new opportunities. For instance, for the ride-sharing industry to exist, it required wireless internet, mobile payment, global positioning systems (GPS), smartphones, and mapping software.

As new and existing technology companies find more ways to combine various technologies, they will be able to improve current offerings and launch entirely new ones.

Two of the biggest risks for tech companies are regulatory scrutiny and overseas manufacturing.

Recently, regulatory scrutiny among tech stocks has been a headwind for the sector. Data and privacy, in particular, have been seeing more scrutiny from regulators. This scrutiny could present challenges for many technology companies, considering how critical the transfer and use of customer data is to many of their business models.

Many tech companies produce products or source parts outside the U.S. to save money on labor costs. Not only does this make these companies more reliant on a country with different laws and business practices, but it could be a risk if the U.S. government's trade relations with that country deteriorate. For example, recent U.S.-China trade tensions have put pressure on some hardware technology companies that are reliant on parts from China to find ways to manufacture or buy these parts in the United States.

With all of this background on the tech sector and tech stocks in mind, let's look at some examples of major tech companies. Here are the 10 largest American tech stocks based on market cap, as of September 2019:

Company

Market Capitalization

Revenue (TTM)

Net Income (TTM)

1. Microsoft (NASDAQ:MSFT)

$1.07 trillion

$125.8 billion

$39.2 billion

2. Apple (NASDAQ:AAPL)

$964 billion

$259.0 billion

$55.7 billion

3. Amazon.com (NASDAQ:AMZN)

$911 billion

$252.1 billion

$12.1 billion

4. Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL)

$841 billion

$148.3 billion

$34.7 billion

5. Facebook (NASDAQ:FB)

$545 billion

$62.6 billion

$17.1 billion

6. AT&T (NYSE:T)

$262 billion

$183.5 billion

$17.4 billion

7. Verizon Communications (NYSE:VZ)

$242 billion

$131.1 billion

$16.4 billion

8. Intel (NASDAQ:INTC)

$222 billion

$70.4 billion

$19.7 billion

9. Cisco Systems (NASDAQ:CSCO)

$207 billion

$51.3 billion

$13.2 billion

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Investing in Tech Stocks: What You Need to Know - The Motley Fool

Investors have been very upbeat about PepsiCo's (NASDAQ:PEP) prospects this year, as the company invests in areas to accelerate sales growth and position itself for sustainable long-term returns.The stock is up 28% so far in 2019 and the latest results seem to have met the already high expectations investors have for the snack-food giant.

Let's look at a few highlights from the fiscal third-quarter earnings report that has investors so optimistic.

IMAGE SOURCE: PEPSICO.

Starting with the top line, organic (non-GAAP) revenue increased by 4.3% year over year.This is slightly below the year-ago quarter's 4.9% increase, but it's still impressive for this global brand powerhouse to post more than 4% growth on top of the strong results in last year's third quarter.Year to date, Pepsi's organic revenue is up 4.6%, which is better than the 3.4% growth reported for the same period this time last year.

Core earnings per share (EPS) on a constant-currency basis were down 1% year over year for the quarter and down 0.5% year to date.However, core EPS of $1.56 beat analysts' estimates by $0.06 per share.

Explaining the backdrop for the strong results, PepsiCo CEO Ramon Laguarta said, "We are making good progress against our strategic priorities and our businesses are performing well as we continue to make the necessary investments in our capabilities, brands, manufacturing and go-to-market capacity to propel our future growth."

The stock continues to soar despite the lower earnings because investors understand that the investments in marketing and additional capacity are putting the company's brands on offense against competitors. Marketing expense is up 12% year to dateand is being directed toward Pepsi's most important brands and geographies.

The Frito-Lay business, which comprises the company's snack food brands in the U.S. and Canada,saw organic revenue increase by 5.5%, enough to gain market share in the quarter.Management noted strong growth in core brands, such as Doritos, Cheetos, Ruffles, and Fritos.Smaller premium brands, including Bare and Off the Beaten Path saw double-digit revenue growth.

The most impressive aspect of these results was the balanced performance across all channels -- grocery, mass, club, convenience, foodservice, and e-commerce-- which is not an easy thing to accomplish given the complexity of managing dozens of brands across different sales channels, especially with competitors trying to grow sales, too.

The North American beverage business saw an acceleration last quarter, improving from organic revenue growth of 2.5% in the fiscal second quarter to 3% in the third quarter.Management is especially pleased with the performance of Gatorade, which gained market share. Gatorade Zero has been a very successful new innovation, exceeding $500 million in retail sales since launching last year.

Pepsi is making investments internationally to drive higher per-capita spending and increase market share, and the results show the efforts are paying off.Organic revenue from developing and emerging markets increased by 7% year over year, including double-digit growth in Mexico, Saudi Arabia, China, Turkey, and Pakistan.

Laguarta's comments during the fiscal third-quarter conference call suggest that Pepsi may still have a few more gears to shift into to accelerate sales growth:

We're invested to increase the capacity and reach of our go-to-market systems with substantial investments in new routes, merchandising racks and coolers, and we're investing in additional manufacturing capacity to remove bottlenecks and expand growth capacity for our brands. These include investments in new plants, new lines and added distribution infrastructure.

Pepsico is also investing in technology, highlighted by the strength in the company's digital sales capabilities. E-commerce is on pace to generate nearly $2 billion in revenue this year.

Management put the cherry on top for the quarter by raising sales expectations for the year. The company now expects to meet or exceed 4% organic revenue growth for the full year.Core EPS should be down 1% in 2019, but free cash flow is expected to be approximately $5 billion.

The company plans to return $8 billion to shareholders through dividends and share repurchases.On the surface, that looks unsustainable, since a business can't continue to distribute more than it brings in year after year. But investors should look at the excess return as a vote of confidence from management in the long-term expectation that free cash flow and net income will move higher.

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PepsiCo Is Investing Where It Counts - The Motley Fool