interview with Natalie Pace
Money Fitness - Investing Our Savings?
It is summer and outdoor activities for those of us that are sports
and fitness minded are foremost on our minds. I cannot wait to
jump out of bed in the morning and go for a fast walk before I
settle in for a good cup of hot tea and a hot date with my computer. Later
in the afternoon, as the sun is setting I am riding my bike enjoying
the sunset by the Pacific Ocean.
If it has been an extremely stressful day, you can find me in
yoga or at the local spin class. With all the attention to my
body and mental emotional well-being, I have also learned to take
good care of my finances now and for the future.
As we go to press the stock market should once again be in its
prime, if it has held its own since the beginning of the year.
If we are on schedule as analysts have predicted, now is the time
to double up on savings and investing our money.
I have taken good care of my finances in the past. I am fortunate
to have had good mentors and helpful brokers. (I am not a Certified
Family Planner and do not have a broker’s license.) I do know
that if we are going to have a healthy financial future, savings
and sound investing is one fundamental course of action that will
get us the results.
Researching your broker or investment team is as important as
researching a good trainer.
Do you hire a trainer who is fat and flabby or one whose body
models the good health and fitness you desire?
It is the same with a money and investment coach. In the past
I have been coaching you about managing your money. It is important
to have a good financial foundation to be able to hold onto the
money you earn as it flows to you.
Recently I interviewed Natalie Pace the CEO and founder of iSophia,
a leading Women’s Investment Network. She managed to walk away
intact from the stock market fall from March 2000 until the recent
She graduated summa cum laude from the University of Southern
California with a degree in English literature, and is a member
of the Phi Beta Kappa and Phi Kappa Phi honor societies.
Natalie W. Pace launched iSophia, a leading Women’s Investment
Network and multi-media investment center, in November of 2002,
to bring education, information, learning opportunities and financial
empowerment to individual investors, who
are hungry for financial health, wealth, ethics and wisdom. Since
the initial launch, business has grown at light speed. Ms. Pace
is currently a regular contributor to Forbes.com, has been interviewed
by Diane Sawyer on Good Morning America and much more.
Ms. Pace’s personal, trademarked investment
strategies are endorsed by major business leaders and investors. N.W.
beat the market in 2000 by anticipating the crash. Her story
gives us all hope. In 2000 Natalie says she couldn’t
even afford the property taxes on her condo, so she sold it and
with the $20,000 profit decided to sit out that year, after a broker
had given her some interesting advice that Natalie knew from being
in the telecommunications industry was bogus.
Natalie and her investment club have extraordinary statistic in
buyer great stocks from the research that they did during 2002 –2003. Her
capital gains in 2001 (during one bear of a year) were above 200%. Brilliant!
Sparks have flashed for the women of Natalie’s group with a growth
record in 2002, the investment club outperformed all of the major
indices--up +200% as of December 2003.
The original investment club founded eighteen months ago consists
of eight women.
The average investor’s monthly contribution was $100 per month. In
easy numbers they have gone from $800 to $45,000 in 18 months.
It wasn’t magic. They followed the principals Natalie and I talked
about in the interview stage of this article and it works.
The network and the club’s formula is practical and to the point,
easy to learn and with focus and teamship, (that’s part of the
investment club theory). Not everyone is good at everything, and
if you have people doing what they are good at in the club, then
the wheels will flash sparks on the tracks to success.
NWP’s web site www.WomensInvestmentNetwork.com features exclusive
first-run interviews with world business leaders, stock report
cards, macro trend articles and educational information on market
terminology, alongside effective approaches to personal and corporate
growth, success and ethics. iSophia’s
advisement team embodies success and experience in finance, entertainment,
fashion, media, marketing and investment clubs.
AR -How did you learn the nuances of the market?
NP - During the year 2000, I kept my money out of the market and
in a 3% savings account. I studied and practiced at buying and
selling stocks. My philosophy is simple and profound, buy low
sell high. Study the investment – what is its ten year time
line. What is being determined with this research is - Is the
stock at its high – mid-point –low?
Look for good strong companies that will lead their sector.
AR - Do not follow the crowd like lemmings to the sea?
NP - Correct, make good sound choices, and
if you don’t like the way something stacks up, don’t buy it. Rather
say, I should have and didn’t than I didn’t take my time and
AR - As simply as possible, what are the principles you subscribe
to buying stocks?
- Buy Low – Sell High
with heart and what you already know about what’s going
on in the world.
- Add Brains
- Choose Companies and Products Your Know.
- Company and Products You Like.
- Understand the Product or Service.
- You as a Consumer are the most valuable advisor for yourself.
- Keep Your Radar Up!
the Products Growth Potential – determine
if the product/service is priced to sell at a higher price at a later date.
Last Tip - Know the P/E Price to Earning Ratio
On a spreadsheet compare all of the numbers with the company’s
competitors. You want to buy the leader in its sector. Leader
meaning the product/service that will in the long run outperform
AR - How do you know a company will outperform the competition?
NP - Go to the company website or get a copy of the company’s
Annual Report. If you know the company’s history, you will be
able to see what percentage of the annual revenues are going into
research and development. Have their products been successful
in the past? Have they been market leaders in the past and more
AR – What is the personality code we should look to crack with
the management of a company?
NP – Investors should remember that companies are made up of real
people. Does the management team consist of ethical visionaries
or greedy megalomaniacs? The rest is gut work?
AR – Often, we ignore the signs of immerging
or failing companies. Tell our readers your father’s story.
NP - My Father, a retired blue collar worker, living in Phoenix
knew K-Mart was in trouble months before they filed for bankruptcy
protection. Why? They were no longer stocking the widgets he wanted,
couldn’t say if they were getting more in, complained about the
computer system and actually sent him to another store to buy them. He
called me, “I think K-Mart is in trouble. We started to do the
research and sure enough their story began to unfold.
AR - Is the stock market a gamble?
NP - Yes, you are choosing whether or not a
company’s value will go up or down. A little like roulette’s black
or red. Do not rush into anything. Having said that, a balanced
portfolio should help minimize the risk.
AR – When is a good time to sell your stocks?
NP – A good profit taking strategies, actually
SELLING when a company’s stock is high instead of always waiting
for it to go higher, just that strategy alone, can significantly
increase your return and reduce your risk.
AR - What if it is a new company?
NP - The newer the company the higher the risk. Without a history
and a profit/earnings ratio available it is too much of a risk
for the beginning investor. However, if you truly believe in and
know the product and the management team, gamble only what
you are willing to lose.
Otherwise, stick with the known. – even if the gains in stock
value may not be as strong percentage wise.
AR - Is it important to due your research?
NP – Extremely! Doing your research and due diligence is critical. Remember,
You are interested in the sector leader, the one with the best
product, management team and research and development to create
upcoming products to outshine its competition in the industry.
You want the Star of the Galaxy.
This interview with Natalie Pace is the beginning of a new and
growing relationship for me and for my readership. A word of
caution! We did not give you any stock advise, nor is this
an endorsement for any of the advise that is on the WomensInvestmentNetwork.com
It is a beginning place. The space where as we grow strong in
our savings we can begin to understand how investing works, so
that as a beginner or even if you are a more seasoned investor
you challenge yourself to stay focused and balanced in exercising
the new muscles of investment.
It is important to recognize all aspect of the information offered
in this column is a blending of the philosophy, you find regularly
in this column, be balanced and fit with your body, your
spirit and your finances. Once the behavior of saving is fully
in your bones, you can continue to save and then begin to invest
step by step.
Be Blessed and have a fit summer.
Dr Audrey Reed, is the regular Financial Columnist for
MS Fitness Magazine. You can
e mail Dr Audrey with questions at Audrey@monetoolboxforwomen.com.
She is the author of Money ToolBox for Women – Simple Soulutions
for Mastering Your Money, now available in e book at www.draudreyreed.com. Soft Cover copies
are available at website or by phone 888 853 6564. Visit her website
for information about new tele-phone seminars, e-zine and contest
she will be running all this summer. Newest book Verbal Magik – 10
Simple Practices to Increase Sales available at www.verbalmagik.com in CD and/or Workbook.
Next Issue – Fall 2004 – 5 Simple Steps for Integrating