The Sheep and the Wolves: Investing

By J.D. Roth on February 6, 2014

Note: This article is from J.D. Roth, who founded Get Rich Slowly in 2006. J.D.’s non-financial writing can be found at More Than Money, where he recently wrote about winning the jackpot.

Imagine that you’re a farmer. You live in a rural county where everybody raises sheep.

The county’s farmers, on the whole, prosper. Their flocks tend to grow by 10 percent every year. Some years are better than others. In the best years, the sheep population in the county grows by 40 percent. Little lambs are everywhere!But in the worst years — years filled with frost, famine, and disease — the sheep population can collapse to half of what it was before.

Further imagine that the county becomes home to vicious predators. Wolves, perhaps. The wolves descend from the mountains and begin to eat the sheep. Some farmers protect themselves from loss, but others don’t know how — and some don’t even realize their flocks are being attacked.

The farmers who take precautions aren’t able to prevent all losses, but they come close. On farms with vigilant shepherds, only 0.10 percent of sheep are lost to wolves every year. For every thousand sheep, the wolves pick off one animal.

The farmers who don’t take precautions, on the other hand, suffer terrible losses. During the initial onslaught they lose 5 percent of their sheep. (Plus, every time they add more sheep to their herds, the wolves manage to grab another 5 percent.) To make matters worse, the wolves steadily steal 2 percent of the beasts every year. For every thousand sheep, this group of farmers loses 50 in the initial attack, and 20 more each year thereafter.

Think of it: After the first year, the smart farmers will have lost just one of every thousand sheep. The other shepherds will have lost 70 sheep.

If the county’s flocks each grew at the long-term 10 percent average during that first year, the vigilant folks would now have 1,099 sheep for every thousand they started with. The unwary farmers would have 1,024 sheep.

Now imagine that in the second year, the same pattern continues. All flocks grow at the long-term average of 10 percent, and the wolves snatch 2 percent of the animals from those farmers who aren’t paying attention. At the end of the second year, the wolf-free flocks would have grown to 1,208 sheep for every thousand that were present at the start. The flocks where the wolves run wild would have just 1,104 sheep.

Both populations of farmers enjoy the same growth rate among their flocks. The difference is that one group loses fewer sheep to the wolves.

And at the end of 10 years following this pattern? The wolf-less flocks would have grown from 1,000 to 2,566 sheep. Those under attack would still have increased, but at a much slower rate. They’d have 2,013 sheep.

Things are even worse when you look at the farmers who add more animals to their farms every year. Remember that I said the wolves slaughter 5 percent of the sheep added to the unlucky flocks? Well, assume that wealthy farmers from both populations are able to buy 100 new sheep every year — but that the wolves snatch five of these from the one group.

At the end of a decade, these wealthy farmers will have contributed a total of 2,000 sheep to their flocks for each 1,000 sheep they started with. With average long-term growth, these flocks will have grown to 4,154 animals for the lucky shepherds and 3,374 sheep for those ravaged by wolves.

Which population of farmers would you prefer to join?

I won’t belabor this analogy any longer. I think most of you get my point.

Stock-market investors are like these sheep farmers. Collectively, they enjoy investment returns of roughly 10 percent per year. Individually, however, things are different. Most investors suffer severe losses from the wolves of Wall Street. Wolves, by the way, who don sheep’s clothing to convince investors to trust them. (These investors also have a tendency to make things worse by selling their flocks when sheep prices fall and expanding them when prices rise.)

If you want to be a successful farmer, you have to understand how farming works, and how to protect yourself from the wolves. Fortunately, it’s not as tough as it seems.

The financial industry wants you to believe that investing is difficult. If you buy into their message, if you accept the premise that you need help to invest wisely, they can charge you big bucks to handle your money.

The truth is somewhat different. Investing is simple. In fact, it can be one of the easiest things you do while managing your finances. How simple? Let’s boil it down to just a few sentences.

Here’s how to invest wisely:

• Set aside as much as you can in investment accounts. Prefer tax-advantaged accounts (like a 401(k) or Roth IRA) before taxable accounts.
• Invest all of your money in a low-cost stock index fund, such as Vanguard’s VTSMX or Fidelity’s FSTMX.
• If the stock market makes you nervous, allocate some portion of your money to a bond fund. Or invest instead in a low-cost combo fund like Vanguard’s VGSTX or Fidelity’s FFNOX.
• Continue investing as much money as possible. Never touch it.(Nothing makes a bigger difference to the size of your flock investments than how much you contribute.)
• Ignore the news and ignore your fund.

That’s it. Seriously. That’s all you have to do to earn returns better than 90 percent of other investors.

There are scores of books and published research papers that support this strategy. It’s also the strategy that Warren Buffett (and other top pros) recommend for 99 percent of investors. If you’d like, you can spend days or weeks or months reading about why this works. Or you can trust these folks and do it.

Longer ago, my own flock of sheep was crippled by predators and my own bad behavior. After many mistakes, I got smart. I moved to greener pastures far from danger. Now I can ignore my sheep and go about my daily life, comfortable that the animals will continue reproducing at the long-term average without any intervention on my part. And with no danger of being consumed by wolves.

Best Photo Editor Software

I ran across this article today and just wanted to share with you. I think I know my pick now.

This is from Duncan Davidson and the website can be found here: http://thesweetsetup.com/apps/best-photo-editing-app-mac/

 

How To Organize Digital Photos

How To Organize Digital Photos

Flu Shots Anyone? You should think about it.

Hello,

I just wanted to share some health information with all of you. This year’s Flu season is very bad. My wife has seen so many more young people die in December 2013 and January 2014 than she remembers. In November, she finally decided to get the Flu shot after being against it, but now she even wears a mask while at work because of all the critical patients that have it on her floor. She works in the Intensive Care Unit. I got my Flu shot on January 11, 2014 after a few of her messages. Here are some text messages from her to me just in the last 2 weeks.

Today: Thursday, Jan. 24, 2014:

“Ok, I have another 35 year old chemically paralyzed vented Had to make DNR.

Please tell ur friends to get vaccinated I am tired of young people dying from the flu, I lost count!”

 

Friday, January 10, 2014

“Please! Go get ur flu shot”

 “I am chemically paralyzing 2, and 3 are on dialysis”

 “Please go to Walgreens and get flu shot, Stat! We have 6 patients from 20 to 60 years old, Most of them 40 Intubated with the flu”

–Further Information–

The CDC reports that as many as 20 states across the U.S. are seeing severe cases of the flu.

Most are the H1N1 strain, which caused a worldwide pandemic four years ago. Brandon Scott reports.

 

Watch this video for new CBS’s H1N1 Flu outbreak sweeping across the US. (Jan. 11, 2014)

Video: CLICK HERE

 

20 children dead as season’s H1N1 child death toll doubles in one week (Daily Mail Reporter, 2014)

• Anywhere from 3,000 to 49,000 people die every year from flu-related illnesses
• 20 children have died so far in the U.S. this flu season
• That number has doubled from 10 since last week’s report  on the number of reported pediatric flu deaths
• The CDC says children and the elderly run the highest risk of death from the virus

 

References

 Daily Mail Reporter. (2014, January 18). 20 children dead as season’s h1n1 child death toll doubles in one week 

 Retrieved from http://www.dailymail.co.uk/news/article-2541666/Faces-flu-outbreak-20-children-dead-H1N1-U-S-storm.html

Going to Chicago

Are you going to Chicago? Here are some great things to do and also, what not to do by Molly Fergus

1. DON’T GO TO THE WILLIS TOWER. You’ll pay $18 to wait in line to go to the top of what is now the country’s second-tallest building. Save the money.

INSTEAD: Have a cocktail at the Signature Room. Settling in at the John Hancock building’s 95th-floor bar costs nothing except the price of your cocktail (around $15). Snag a table next to one of the floor-to-ceiling windows if it’s not too crowded, Spy four states: Illinois, Wisconsin, Indiana, and Michigan. Ladies, don’t skip a visit to the restroom. The views are among the best in the house.

2. DON’T PUT KETCHUP ON YOUR HOT DOG. This is serious business in Chicago. So much so that Gene and Jude’s, a popular hot dog stand, famously refuses to stock ketchup. (The McDonald’s next store has started selling packets of the stuff to desperate, ketchup-loving chumps).

INSTEAD: Drag it through the garden. This is what you put on a Chicago hot dog instead of ketchup: mustard, relish, dill pickle spear, tomatoes, chopped white onion, celery salt, and sport peppers.

3. DON’T EAT ONLY DEEP DISH. You should try deep dish, yes, but that shouldn’t be your sole Chicago pizza experience.

INSTEAD: Sample thin crust, too. Mom-and-pop pizzerias all over the city serve delicious thin crust—this is the stuff Chicagoans actually eat when they order in a pizza. A regional quirk: These pies are cut into small, checkerboard squares instead of floppy slices. The technique leaves plenty of crust-free middle pieces, and a few crunchy, bite-sized triangles on the edges.

4. DON’T FILL UP ON PIZZA AND HOT DOGS. You could easily spend days wolfing hot dogs and pizza in Chicago, and that wouldn’t necessarily be bad. But you should eat some other things, too.

INSTEAD: Explore the city’s chef scene. Save some stomach space for the city’s serious culinary scene—whether that means sampling Stephanie Izard’s small plates at Girl and the Goat or nabbing tickets to Grant Achatz’s Next.

5. DON’T VISIT WHEN IT’S COLD. Yes, the winters are as bad as you’ve heard. And no, it’s not because of the wind.

INSTEAD: Visit in the summer. Locals embrace the warm weather with the kind of enthusiasm you can only have after surviving months of sub-freezing temps. That means every weekend is packed with festivals (big ones, likeLollapalooza, and smaller, neighborhood-centric fests, too); the beaches are open (yes, you can swim in the lake); and drinking on patios becomes everyone’s favorite hobby.

6. DON’T BOOK TICKETS IN THE THEATER DISTRICT. Save the Broadway shows for when you’re actually on Broadway.

INSTEAD: See comedy. The Second City is the most famous of Chicago’s improv theaters, and rightfully so: It’s churned out the likes of John Belushi, Dan Akroyd, and Tina Fey. But it’s not the only comedy venue in town: visit Zanie’s for stand-up; iO Chicago for more improve; or theNeo-Futurists for Too Much Light Makes the Baby Go Blind, where actors somehow perform 30 plays in 60 minutes.

7. DON’T SHOP ON MICHIGAN AVENUE. The Magnificent Mile isn’t all that magnificent in terms of shopping. You’ll find mall standbys (H&M, Nordstrom, Gap) and a big Niketown, but that’s about it.

INSTEAD: Browse in Bucktown and Wicker Park. These twin neighborhoods on the Northwest side have grown up from their hipster roots, and so has its shopping. A mix of indie boutiques, vintage stores, and designer shops make it equally appealing for serious shopping or an afternoon of browsing.

8. DON’T TAKE THE FAMILY TO NAVY PIER. Navy Pier is like the Times Square of Chicago: It’s busy and touristy and, for some reason, iconic, but there isn’t all that much to actually do there.

INSTEAD: Ride bikes along the lakefront path. The city claims 26 miles of lakefront, which residents take to in droves once those nasty winters finally clear. Grab a Divvy bike (Chicago’s new bike-sharing program) from one of the docking stations near Grant Park, and pedal south on the lakefront path. You’ll see Museum Campus, Soldier Field, and Navy Pier—a far better use of your time than lunch at Bubba Gump’s.

9. DON’T GO TO BROOKFIELD ZOO. It’s not thatBrookfield Zoo is bad, it’s just out in the ‘burbs. A trip there will eat up an entire day of your vacation.

INSTEAD: Visit Lincoln Park Zoo. Though much smaller than Brookfield, Lincoln Park Zoo wins for location and price: Admission is free, and the 35-acre space is situated right along the lake, so you can knock out a beach trip and a zoo visit in one day.

10. DON’T TAKE A DOUBLE DECKER BUS TOUR.You can do that in any city.

INSTEAD: Book an Architecture River Cruise. Ditch the bus: The best way to see Chicago’s rightfully famous architecture is by boat.  Book one of the Chicago Architecture Foundation’s tours, which cruise down the river while docents interpret more than 50 of the city’s buildings.

Want More, visit these other pages:

New York – http://www.cntraveler.com/daily-traveler/new-york/2013/12/what-not-to-do-nyc-travel

Los Angeles – http://www.cntraveler.com/daily-traveler/los-angeles/12/los-angeles-travel-tips

San Francisco – http://www.cntraveler.com/daily-traveler/2013/12/san-francisco-travel-ideas

Las Vegas – http://www.cntraveler.com/daily-traveler/2013/12/what-not-to-do-in-las-vegas

CoQ10 Supplementation with Statins

An estimated 36 million Americans are now using statin drugs.

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Healthy garlic and ginger drink

THE MIRACLE CURE

Some top doctors have revealed that the combination of garlic, ginger, lemon, apple cider vinegar and honey is a wonderful drug that can cure everything from Cancer to Arthritis, and makes you lose extra body fat and weight.

Amazing studies from respected universities around the world prove the miracle home remedy that costs just pennies a day to make, a super way to fight just about any affliction. Experts have verified that this health restoring trick of garlic, ginger, lemon juice, vinegar & honey can wipe both our common & not so common ailments.

Success also includes acne, Alzheimer’s disease, arthritis, asthma, high blood pressure, some types of cancer, excessive cholesterol levels, gas and indigestion, headaches, heart and circulatory problems, hemorrhoids, infertility and impotence, toothaches, obesity, ulcers, and many other diseases and conditions.

In a study of arthritis Dr. Angus Peter of the University of Edinburgh’s Arthritic Research institute found a daily dose of vinegar and honey reduced pain by 90%.

A daily dose of garlic and vinegar has proved to be a powerful and fast weight destroyer and reducer, according to Dr.Raymond Fisk of London’s Lamsus UniversityResearch Center. The prestigious British Medical Journal Lancer reported that cholesterol levels plunged on average from 237.4 to 223.4 in three hours after volunteers consumed 60 grams of garlic and four ounces of butter. The study proved adding garlic to your diet could neutralize the dangers associated with high fat.

A study of 261 adult patients by the German association of general practitioners indicated that cholesterol and triglycerides levels factors associated with the risk of heart disease are significantly reduced by regular use of garlic in the diet.

Houston’s M.D. Anderson Cancer Institute in Houston, the Pennsylvania State University and ULSA, support earlier evidence that certain ingredients in garlic block agents that cause cancers of the breast, colon, skin and esophagus. The National Cancer Institute found in a study of 1600 people that eating a lot of garlic is linked to a reduced risk of stomach cancer. Dr. Erik Block of the State University of New York at Albany has discovered that garlic release at least 100 sulfur producing compounds all of which are powerful medicines.

THE MAGIC POTION

There appears to be little doubt that this astonishing potion made by mixing garlic, ginger, lemon juice, apple cider vinegar and honey can extend life by protecting you from many proven killers. Dr. Han Len Tsao writes in China’s respected Journal of Natural Medicine, that “patients when given this miracle drink before breakfast showed a remarkable reduction in high blood pressure and cholesterol in less than a week. The Italian nutritionist Emilio Stefan adds, “Years of scientific investigation by experts around the world have proven beyond doubt that garlic, honey and vinegar are nature’s magic potion. The powerful ingredients are available every where and cost only pennies a day when consumed. Considering all what these natural substances can do for the human health is amazing.

Dr. Jack Soltanoff, who is a national expert at New York, praises the benefits of apple cider vinegar. He recorded remarkable success stories involving arthritis sufferers. He says, “I have seen many arthritis patients start to loosen up at once”

Some even call it (apple cider vinegar) a natural arthritis tonic that frees them from stillness pain and aches within just a few weeks, and most pain wrecked patients can pertain normal activities because of this simple tonic. The boxing legend Muhammad Ali took a daily dose of this potion to fight the symptoms of Parkinson’s disease and many other athletes are heard to be taking it for having a competitive edge.

“Honey has been described as the perfect food” notes a respected researcher, “it contains a lot of nutrients and minerals, the important part of nine vitamins, six acids and four key enzymes in their most natural state. The patients who took the daily dose of this magical drink were more vigorous, had fewer infectious disease and in general even healthier than those who didn’t. “There’s no question that this astonishing elixir can lend life by replacing from many proven killers.”

BASIC RECIPE

Here’s how to make your own miracle medicine.

In a bowl, mix together half a cup of lemon juice, half a cup of ginger juice. Now put twenty five cloves of chopped garlic in a blender and mix at high speed. Add one cup of vinegar (use only apple cider vinegar), as you blend and after it has mixed nicely add one cup of honey, and mix the whole mixture in the blender again. Now pour this mixture into a glass jar (no plastics) and leave it in the refrigerator for a minimum of five days.

Normal dosage is two teaspoons in a glass of warm water or fruit juice. (Grape or orange juice is best before breakfast). A second dose if desired can be taken in the evening. For treating specific conditions or ailments, use the potion as recommended.

STOREHOUSE

Honey not only makes your daily dose taste better, the sweet stuff also aids in your body’s ability to absorb in medicinal properties of the powerful ingredients. Garlic provides a storehouse of vitamins and minerals and what excites researchers more, is growing evidence that from an enzyme present in large amounts in garlic stimulates the immune system. In a recent study involving two thousand elder women, researchers found that those who ate garlic once in a week were half as likely to develop colon cancer as those who did not.

NINE COMMON AILMENTS AND RECOMMENDED TREATMENTS

Arthritis: Mix a teaspoon in half cup of warm water and drink before going to bed.

Asthma: A teaspoon of the basic potion in the morning on an empty stomach will have you breathing lightly in no time.

Cancer: When making the potion, double the garlic cloves and take two tea spoons in juice three times a day.

High blood pressure: Make a special batch of the elixir, using two cups of water, 18 garlic cloves, two tablespoons of vinegar and three tablespoon of honey. Blend as before and keep on medium to low heat for half an hour. Allow it to cool and take three tablespoons three times a day.

To Lower cholesterol: Make a tea by adding a teaspoon of the elixir in a cup of hot water and drink before meals, three times a day.

Heart disease: Use the recipe for high blood pressure and sip a half-cup of the mixture three times a day.

Impotence: Boil a cup of vinegar mixed with seven to ten crushed cloves of garlic and a tablespoon of honey for five minutes. Cool and drink like tea.

Acne or pimples: Use a basic potion on affected area with a piece of cotton each night.

Gas or indigestion: Put two tablespoons of the basic mixture in a cup of water and warm to the temperature you use for your coffee or tea. Sip slowly at the first sign of distress. Even though it has been blended with honey and vinegar, garlic’s pungent odor can still be a problem for some people. To deal with any side affect, experts recommend putting springs of parsley in the elixir or eating parsley raw after taking a dose.

This amazing natural remedy has been around for at least 4,000 years.

http://aoc777.blogspot.com/2009/06/miracle-cure.html

MALUNGGAY aka the Miracle Tree

Just wanted to share some new information I looked up this morning for a friend. It seems pretty interesting. Health is important.

Malunggay Scientific Name : Moringa Oleifera

 

Malunggay (Moringa Oleifera), is a popular plant known for nutritional value as well as a herbal medicine. Malunggay is a plant that grows in the tropical climates such as the Philippines, India and Africa. Malunggay is widely used as vegetable ingredient in cooking, as herbal medicine for a number of illness and other practical uses. The Malunggay plant can grow to as high as 9 meters with erect white trunks. The compound leaf has about 3 to 9 leaflets. Malunggay has white fragrant flowers that produces long pods with 3-angled winged seeds.

The malunggay pods are the most valued and widely used part of the plant. Malunggay pods contains essential amino acids, vitamins and other nutrients. Malunggay pods may be eaten raw or may be prepared or cooked. Malunggay pods may be fried and may produce a clear, odorless and sweet oil mostly called – Ben Oil.

Malunggay leaves may be eaten as greens, in salads and as vegetable ingredients for soups and other tropical viands. Malunggayflowers are cooked and eaten either mixed with other foods or fried in batter.

MEDICAL USES:

Malunggay, combat malnutrition, used to combat malnutrition, especially among infants and nursing mothers vitamins A, B and C, calcium, iron and protein

Malunggay – Anti infectious: Antibacterial; Anti Fungal, . In late 1940’s, The Department of Biochemistry at the Indian Institute of Science in Bangalore (PLN Rao) have found that malunggay or Moringa Oleifera leaves contain a compound”pterygospermin” that is known in medical science as having antimicrobial, antibacterial, anti fungal properties.

Malunggay – Anti Cancer Malunggay or Moringa has been shown in studies to have an anti-tumor capacity. Moringa contains benzyl isothiocyanate. There are many studies that have shown this chemical and compounds derived thereof to have anti-cancer and chemoprotective capabilities. This chemoprotective aspect is critical for those who are battling cancer; this helps strengthen cells so that they can tolerate chemotherapy. Malunggay is also considered in the treatment of prostate cancer and skin cancer. (Ref: Fuglie LJ (2000) New Uses of Moringa Studied in Nicaragua. ECHO Development Notes #68, June, 2000. ttp://www.echotech.org/network/modules.php?
name=News&file=article&sid=194)

Malunggay – anti-inflamatory: Malunggay has been found to inhibit inflammation in a controlled scientific study conducted by Philippine DOST Scientists (Amelia P. Guevara, Carolyn Vargas and Milagros Uy). When an aquous seed extract of malunggay has been administered to a carrageenan induced inflammation, its was noted that the aquous seed extract of the Malunggay (Moringa Oleifera) inhibited the development of edema in ratpaw. The Malunggay is traditionally used to prevent and treat inflammations associated with rheumatism, arthritis and joint pains.

Malunggay – Reproductive health. Fuglie LJ (1999) The Miracle Tree: Moringa oleifera: Natural Nutrition for the Tropics has reported that Malunggay or Moringa Oleifera is widely believed to have an aphrodisiac action that enhances the sexual activity. Malunggay or moringa oleifera young leaves is also widely used to increase the flow of milk for lactating mothers.

Malunggay as food. Malunggay pods may be eaten raw or may also be fried with peanut similar taste. Malunggay leaves and flower may also be cooked together with other vegetables and meat to form soups or viands.

Malunggay decoction for washing sores and wounds, Boil malunggay roots and let it cool to tolerable warm temperature and use it to wash wounds and sores. By gargling the Malunggay decoction, it may also be used to wash mouth sores and sore throats.

Malunggay poultice. Grounded Malunggay seeds, leaves and bark may be applied topically as poultice onto swollen flesh to relieve inflammation.

Malunggay oil may be taken internally as mixed with foods, it is known to be a powerful antioxidant even used by the early people from Egypt. Malunggay oil also known as Ben oil is widely used as oil base for perfumes and cosmetics. The oil is extracted from Malunggay seeds by pressing.

Health benefits:

• Malunggay leaves helps strengthens the immune system.
• Malunggay can help restores skin condition, controls blood pressure, relieves headaches and migraines.
• Malunggay tea can help strengthen the eye muscles.
• Malunggay tea can help heal inflammation of the joints and tendons.
• Malunggay tea can prevent intestinal worms.
• Malunggay can help increase semen count.
• Malunggay help normalize blood sugar level therefore preventing diabetes.
• Malunggay has anti-cancer compounds (phytochemicals) that help stop the growth of cancer cells.
• Malunggay helps relax and promotes good night sleep.
• Malunggay tea is used to treat fever and asthma.
• Malunggay help heals ulcers.
• Malunggay is high in calcium (four times the calcium in milk), therefore lactating mothers are advised to consume malunggay leaves to produce more milk for their babies. The young malunggay leaves are also boiled and taken as tea.
• Malunggay contains three times the potassium in bananas.
• Malunggay contain four times the vitamin A in carrots.
• An ounce of malunggay has the same Vitamin C content as seven oranges.
• Malunggay leaves contain two times the protein in milk.
• Malunggay seed is used to clean dirty or polluted water.

References:

Health benefits of malunggay. (2011, March 26). Retrieved from http://health-benefits-of-malunggay-leaves.blogspot.com/

Malunggay herbal medicine, health benefits, side effects, preparation. (2011). Retrieved from http://www.medicalhealthguide.com/articles/malunggay.htm

Tuesday Rant

Crazy busy day. Surprise rush project reappeared suddenly from back in March taking 2nd half of day putting me more behind. Training new hire in morning and GoToTraining in afternoon. I need to multiply myself. No time! Now i just had two naked, no bun hotdogs for dinner. Is the evening getting better? It will, if I can sleep. Sleeping is hard lately. Mind has to many thing to ponder. The only thing that made todAy horrible was the lack of communication my sales staff have. There is no such thing has a “magic button.”

Health Benefits of Coconut Oil (Organic)

Health Benefits of Coconut Oil

The health benefits of coconut oil include hair care, skin care, stress relief, cholesterol level maintenance, weight loss, boosted immune system, proper digestion and regulated metabolism. It also provides relief from kidney problems, heart diseases, high blood pressure, diabetes, HIV, and cancer, while helping to improve dental quality and bone strength. These benefits of oil can be attributed to the presence of lauric acid, capric acid and caprylic acid, and their respective properties, such as antimicrobial, antioxidant, anti-fungal, antibacterial and soothing qualities.

Coconut oil is used extensively in tropical countries especially India, Sri Lanka, Thailand, Philippines etc., which have a good production of coconut oil. At one time, the oil was also popular in western countries like the United States and Canada, but there was a strong propaganda campaign in the 1970s spread by the corn oil and soy oil industry against coconut oil. Coconut oil was considered harmful for the human body due to its high saturated fat content until the last decade (2000s) when people began to question the claims of the propaganda. Next, let’s look into some more details of how coconut oil works in our body.

How is lauric acid used by our body?

The human body converts lauric acid into monolaurin, which is supposedly helpful in dealing with viruses and bacteria that cause diseases such as herpes, influenza, cytomegalovirus, and even HIV. It also helps in fighting harmful bacteria such as listeria monocytogenes and helicobacter pylori, and harmful protozoa such as giardia lamblia.

As a result of these various health benefits of coconut oil, although its exact mechanism of action was unknown, it has been extensively used in Ayurveda, the traditional Indian medicinal system. The Coconut Research Center has compiled a list of potential benefits of coconut oil in both traditional and modern medicine.

Before we move on to the benefits of coconut oil in detail, we should first understand its composition.

Composition of Coconut Oil:

More than ninety percent of coconut oil consists of saturated fats (Don’t panic! It’s not as bad as it sounds, read to the end of this review and your opinion may change), along with traces of few unsaturated fatty acids, such as monounsaturated fatty acids and polyunsaturated fatty acids. Virgin coconut oil is no different from this.

Saturated fatty acids: Most of them are medium chain triglycerides, which are supposed to assimilate well in the body’s systems. Lauric acid is the chief contributor, representing more than forty percent of the total, followed by capric acid, caprylic acid, myristic acid and palmitic.

Polyunsaturated fatty acids: Linoleic acid.

Monounsaturated fatty acids: Oleic acid.

Poly-phenols: Coconut contains Gallic acid, which is also known as phenolic acid. These polyphenols are responsible for the fragrance and the taste of coconut oil and Virgin Coconut Oil is rich in these polyphenols.

Certain derivatives of fatty acid like betaines, ethanolamide, ethoxylates, fatty esters, fatty polysorbates, monoglycerides and polyol esters.

Fatty chlorides, fatty alcohol sulphate and fatty alcohol ether sulphate, all of which are derivatives of fatty alcohols.

Vitamin-E, vitamin K and minerals such as iron.

Health Benefits of Coconut Oil

Hair care:

Coconut oil is one of the best natural nutrients for your hair. It helps in healthy growth of hair and gives your hair a shiny quality. It is also highly effective in reducing protein loss which can lead to various unattractive or unhealthy qualities in your hair.

Coconut oil is extensively used in the Indian sub-continent for hair care. Most of the people in those countries apply coconut oil on their hair every day after bathing or showering. It is an excellent conditioner and helps the re-growth process of damaged hair. It also provides the essential proteins required for nourishing and healing damaged hair. Research studies indicate that coconut oil provides better protection to hair from damage caused by hygral fatigue.

By regularly massaging your head with coconut oil, you can ensure that your scalp is free of dandruff, even if your scalp is chronically dry. It also helps in keeping your hair and scalp free from lice and lice eggs.

Coconut oil is therefore used as hair care oil and is used in manufacturing various conditioners and dandruff relief creams. Coconut oil is normally applied topically for hair care.

Heart diseases

There is a misconception spread among many people that coconut oil is not good for heart health. This is because it contains a large quantity of saturated fats. In reality, coconut oil is beneficial for the heart. It contains about 50% lauric acid, which helps in actively preventing various heart problems like high cholesterol levels and high blood pressure. The saturated fats present in coconut oil are not harmful as you commonly find in vegetable oils. Coconut oil does not lead to increase in LDL levels, and it reduces the incidence of injury and damage to arteries and therefore helps in preventing atherosclerosis.

Skin care

Coconut oil is an excellent massage oil for the skin as well. It acts as an effective moisturizer on all types of skin, including dry skin. The benefit of coconut oil on the skin is comparable to that of mineral oil. Fortunately, unlike mineral oil, there is no chance of having any adverse side effects on the skin from the application of coconut oil. Coconut oil therefore is a safe solution for preventing dryness and flaking of skin. It also delays the appearance of wrinkles and sagging of skin which normally accompany aging. Coconut oil also helps in treating various skin problems including psoriasis, dermatitis, eczema and otherskin infections. For that exact reason, coconut oil forms the base ingredient of various body care products like soaps, lotions, and creams that are used for skin care. Coconut oil also helps in preventing premature aging and degenerative diseases due to its well-known antioxidant properties.

Weight loss

Coconut oil is very useful for weight loss. It contains short and medium-chain fatty acids that help in taking off excessive weight. It is also easy to digest and it helps in healthy functioning of the thyroid and endocrine system. Further, it increases the body’s metabolic rate by removing stress on the pancreas, thereby burning more energy and helping obese and overweight people lose the weight. Hence, people living in tropical coastal areas, who use coconut oil every day as their primary cooking oil, are normally not fat, obese or overweight.

Immunity

Coconut oil is also good for the immune system. It strengthens the immune system because it contains antimicrobial lipids, lauric acid, capric acid and caprylic acid which have antifungal, antibacterial and antiviral properties. The human body converts lauric acid into monolaurin which research has supported as an effective way to deal with viruses and bacteria that cause diseases like herpes, influenza, cytomegalovirus, and even HIV. Coconut oil helps in fighting harmful bacteria like listeria monocytogenes and helicobacter pylori, and harmful protozoa such as giardia lamblia.

Digestion

Internal functions of coconut oil occur primarily due to it being used as cooking oil. Coconut oil helps to improve the digestive system and thus prevents various stomach and digestion-related problems including Irritable Bowel Syndrome. The saturated fats present in coconut oil have antimicrobial properties and help in dealing with various bacteria, fungi, and parasites that can cause indigestion. Coconut oil also helps in the absorption of other nutrients such as vitamins, minerals and amino acids.

Candida

Coconut has been shown to prevent and even cure candida. It provides relief from the inflammation caused by candida, both externally and internally. Its high moisture retaining capacity keeps the skin from cracking or peeling off. Further, unlike other pharmaceutical treatments for candida, the effects of coconut oil is gradual and not drastic or sudden, which gives the patient an appropriate amount of time to get used to the withdrawal symptoms or Herxheimer Reactions (the name given to the symptoms accompanying body’s rejection of toxins generated during elimination of these fungi). But, in the treatment of this condition, people should systematically and gradually increase their dosages of coconut oil and shouldn’t initially start with a large quantity.

Candida, also known as Systemic Candidiasis, is a tragic disease caused from excessive and uncontrolled growth of yeast called Candida Albicans in the stomach. This yeast is more or less present in everyone’s stomach, but it doesn’t manifest any adverse effects since its growth is controlled by the beneficial bacteria which also resides in our stomach. There are many reasons for this uncontrolled growth of yeast. For example, if other destructive bacteria or the use of antibiotics which ultimately end up in eliminating these bacteria, there can be an imbalance of bacteria and a problem like Candida can develop. Also, bleaching or washing of your stomach with medicines or excessive use of chemical laxatives or ingestion of poisonous material can cause the yeast or fungi to start growing very fast and can lead to Candida.

Symptoms of candida: The symptoms of Candida include infection in the genitals, urinary tract and bladder, stomach & intestines, ear, nose and throat, itchy and dry skin, inflammations in internal organs and skin, patching & peeling off of skin (particularly in scalp), digestive and excretory disorders and problems with your hair and nails.

This disease is very common in Europe and America, possibly due to the cold and moist climate and general food preparation, storage, and comsumption habits. In these places, a large portion of their food is comprised of food stuffs which, in some way or the other, are processed with yeast or fermented. For example, these cultures heavily rely on foods like bread, other baked items, cheese and above all, wine and other alcoholic drinks. These things also assist growth of Candida Albicans in the body. The various fatty acids found in the coconut oil are beneficial in counteracting the effects of these habits and can be used to treat Candida.

Capric acid is a medium chain fatty acid (a Saturated Fat) present in coconut oil has antimicrobial, antiviral and antifungal properties. This is the same fatty acid present in breast milk and it protects the baby from bacterial, viral and fungal infections. In the body, it reacts with certain enzymes secreted by other bacteria, which subsequently convert it into a powerful antimicrobial agent, monocaprin. In the systematic use coconut oil as a treatment for Candida, the capric acid has also been found very effective in killing the yeast.

Caprylic acid, caproic acid, myristic acid and lauric acid are all found in coconut oil and have antimicrobial and antifungal properties which aid in the elimination of candida albicans. Lauric acid is a saturated fat and a medium chain fatty acid that forms a compound called monolaurin when it reacts with enzymes. This monolaurin is a potent germ and fungus killer.

Healing and infections

When applied to infected areas, coconut oil forms a chemical layer that protects the infected body part from external dust, air, fungi, bacteria and viruses. Coconut oil is highly effective on bruises because it speeds up the healing process of damaged tissues.

Infections: Coconut oil is very effective against a variety of infections due to its antifungal, antiviral, and antibacterial properties. According to the Coconut Research Center, coconut oil kills the viruses that cause influenza, measles, hepatitis, herpes, SARS, and other serious health risks. It also kills bacteria that cause ulcers, throat infections, urinary tract infections, pneumonia, and gonorrhoea. Finally, coconut oil is also effective in the elimination of fungi and yeast that cause ringworm, athlete’s foot, thrush, and diaper rash.

Other

Coconut oil is strongly recommended for a number of other benefits that are explained below. Using coconut oils has been shown to mildly help the following:

Liver: The presence of medium chain triglycerides and fatty acids helps in preventing liver diseases because those substances are easily converted into energy when they reach the liver, thus reducing the work load of the liver and also preventing accumulation of fat.

Kidney: Coconut oil helps in preventing kidney and gall bladder diseases. It also helps to dissolve kidney stones.

Pancreatitis: Coconut oil is also believed to be useful in treating pancreatitis.

Stress relief: Coconut oil is very soothing and hence it helps in removing stress. Applying coconut oil to the head, followed by a gentle massage, helps to eliminate mental fatigue.

Diabetes: Coconut oil helps in controlling blood sugar, and improves the secretion of insulin. It also promotes the effective utilization of blood glucose, thereby preventing and treating diabetes.

Bones: As mentioned earlier, coconut oil improves the ability of our body to absorb important minerals. These include calcium and magnesium which are necessary for the development of bones. Thus, coconut oil is very useful to women who are prone to osteoporosis after middle age.

Dental care: Calcium is an important component of our teeth. Since coconut oil facilitates absorption of calcium by the body, it helps in developing strong teeth. Coconut oil also stops tooth decay.

HIV and cancer: It is believed that coconut oil plays an instrumental role in reducing a person’s viral susceptibility for HIV and cancer patients. Preliminary research has shown an indication of this effect of coconut oil on reducing the viral load of HIV patients (Reference).

Finally, coconut oil is often used by athletes, body builders and by those who are dieting. The reason behind this being that coconut oil contains less calories than other oils, its fat content is easily converted into energy, and it does not lead to accumulation of fat in the heart and arteries. Coconut oil helps boost energy and endurance, and generally enhances the performance of athletes.

Coconut oil and Alzheimer’s disease: The research conducted by Dr. Newport states that coconut oil is useful in treating Alzheimer’s disease. Apart from this there is no scientific evidence or traditional knowledge of coconut oil being used for treating Alzheimer’s. In fact, it is not traditionally thought that coconut oil helps in boosting the function of the brain in any form.

Why is coconut oil solid?: Unlike most other oils, coconut oil has a high melting point – about 24 to 25 degrees Celsius or 76-78 Fahrenheit. Therefore it is solid at room temperature and melts only when the temperature rises considerably. Hence, if you buy a bottle of coconut oil and find it solid, don’t immediately assume that there is some problem with it. Coconut oil is often in this form, and obviously, don’t keep it in your refrigerator.

How to use coconut oil?: If you are using coconut oil for topical purposes, especially hair care, just melt the oil (if it is solid) by keeping the bottle in the sun or soaking it in warm water. You can also take some coconut oil out and put it in a small bowl and heat the bowl over a flame (don’t use a microwave). Then, take the oil on your palm and apply it to your hair. If you want to use it for internal consumption, simply replace butter or vegetable oils with coconut oil in your recipes. Remember, you don’t need to completely switch to coconut oil, because then you will lose the other benefits of more traditional oils and dairy products.

Can I use coconut oil for cooking?: Yes, in most of the tropical coastal regions, people use coconut oil for cooking.

I don’t like the taste of coconut oil. What should I do?: Try using coconut oil in a variety of different recipes. However, if you get nauseated after eating coconut oil, don’t force yourself to eat it. As can happen with any food item, your body may be allergic to coconut oil and it is best not to consume it.

Varieties of Coconut Oil

There are primarily 6 varieties of coconut oil that you will find on the market. These are pure coconut oil, refined coconut oil, organic coconut oil, virgin coconut oil, organic virgin coconut oil and extra virgin coconut oil.

Pure Coconut Oil: This oil is our most well-known old friend. It is extracted from dried coconut kernels, which are also called copra. It is crude, unrefined and without any additives. It is mainly extracted by compression of copra in a mill, either driven by bullocks or by power. However, the variety extracted by bullock driven oil mills is preferred. Pure coconut oil has multiple uses such as edible oil, massaging oil, hair oil, cosmetic usage, as well as medicinal and industrial use.

Refined Coconut Oil: This is sometimes also called the RBD coconut oil, which is an abbreviated form for refined, bleached & deodorized coconut oil. As the name suggests, this type is obtained by mechanically and chemically refining, bleaching and deodorizing the crude coconut oil, to make it thin, colorless, odorless and without any type of particle (such as proteins) suspended in it. What we then get is only pure saturated fats.

Virgin Coconut Oil: Virgin coconut oil is derived from the milk obtained from fresh coconut meat, and not from copra, by processes like fermentation, centrifugal separation and enzyme action. Care is taken to use no or as little heat as possible in the extraction of this oil. Produced in this way, the oil tastes and smells the best and is laden with antioxidants and medium chain fatty acids. It also has remarkable anti-microbial properties. This is one of the most respected and trusted varieties of coconut oil.

Organic Coconut Oil: The coconut oil that has been extracted from coconuts obtained from coconut palms raised only on organic manure and no synthetic fertilizers or insecticides. The production of organic coconut oil is also completed without involving any chemical in its extraction or processing. This is another well-respected variety of coconut oil. Organic coconut oil forms an integral part of a number of organic cosmetic products such as organic soaps, organic skin creams and lotions, organic snacks and thousands of other similar products. Some of the organic programs and authorities that certify organic coconut oil include Global Organic Textile Standards (GOTS), USDA National Organic Program (NOP), European Organic Regulations (EU 2092/91), Export Certificates for Japan (JAS Equivalent), Indian National Programme for Organic Production (NPOP), Quebec Organic Reference Standard (CAAQ), Bio Suisse Standards, IOFAM Basic Standards, ECOCERT.

Organic Virgin Coconut Oil: This type of oil is basically virgin coconut oil produced from the organic coconuts, in an organic way. This is perhaps the best and purest form of coconut oil one can imagine, but it is rare.

Extra Virgin Coconut Oil: Among all the varieties of coconut oil, this is the most challenged and controversial variety, as its very existence is doubtful and the name hardly makes any sense. Furthermore, there are no set standards for virginity of coconut oil. Moreover, reputed firms and governmental bodies are still hesitant to say anything on the matter, nor are they selling it. Basically, further research is definitely required.

The properties of coconut oil do not differ much with their varieties and remain more or less the same. So, think well and make a wise decision before you decide to purchase one of the varieties.

Coconut Oil as a Carrier Oil: Coconut oil can be very efficient as carrier oil. Carrier oils hold a place of high importance in Aromatherapy, Ayurveda, Chinese Medicine and all other systems of treatment that involve massaging. Carrier oils are those oils which easily penetrate or absorb into the skin and thus facilitate seepage or absorption of other oils (such as essential oils) and herbal extracts through the skin when mixed into it. Coconut oil is easily absorbed through the skin’s pores and thus is used as a carrier oil. Furthermore, being one of the most stable oils, it doesn’t go rancid, nor does it let the other oils, herbal extracts, or medicines spoil inside of it. Due to its anti-fungal and anti-microbial property coconut oil keeps the oils, herbal extracts and medicines that are mixed in it protected from microbial or fungal interactions. It also does not alter the properties of the oils and herbs mixed within it. Coconut oil is expensive in several countries; however, in tropical countries its cost is low enough to make it affordable as a carrier oil.

Coconut oil extraction

Cold pressing is one of the preferred methods for the extraction of coconut oil.The quality of coconut oil depends a lot on the method of its extraction. Basically, there are two main methods of extraction of coconut oil. The first is cold pressing of copra (dried coconut kernels) and the second is boiling of fresh coconut milk. Since boiling or heating destroys many nutrients and valuable components, coconut oil obtained this way is not considered as good as that obtained by cold pressing, since cold pressing retains much of oil’s goodness. Machine pressing and bullock/manual pressing are two methods of cold pressing.

Machine pressing: In this cold pressing is done with the help of an electrically or diesel-engine driven oil mill. Most of cold pressed oil used in the world is obtained this way.

Bullock/manual pressing: The oil obtained this way has a better taste and fragrance and is more expensive since the production is smaller, it consumes more time and energy, and wastage is higher. In short, it has a higher price, lower availability and better quality.

Buying Coconut Oil

First of all, you need to decide why you need coconut oil and where you are going to use it. Your choice should be based on your need, like whether you want it for edible purposes or as a carrier oil to be used in aromatherapy, for massaging, for weight loss, or for medicinal purposes. As mentioned earlier, there are different varieties for different purposes. Their properties do not differ much, unless they are mixed with some base or additives that do not contain 100% coconut oil. Below is a list of such purposes and the type of coconut oil to buy.

Purpose————–Preferable Type to Buy

Cooking————–Refined Coconut Oil

Weight Loss———Virgin Coconut Oil

As a Carrier Oil—–Virgin Coconut Oil, Fractionated Coconut Oil

Good Health———Virgin Coconut Oil, Organic Coconut Oil

Massaging———–Pure Coconut Oil, Refined Coconut Oil

Hair——————–Pure Coconut Oil, Refined Coconut Oil

Medicinal uses—–Virgin Coconut Oil, Virgin Organic Coconut Oil

Furthermore, before you buy coconut oil, you should keep in mind that for edible and therapeutic uses, refined coconut oil is the best as it is hygienic and clean. Unrefined coconut oil is good for external applications like hair care and skin care.

Where to buy from?: Except some of the special varieties, such as virgin coconut oil and organic coconut oil, other varieties like pure coconut oil and refined coconut oil are easily available in most grocery stores, especially in tropical countries. For special varieties, you may need to search in larger department stores or drug stores. Things may be a little different in countries which do not produce coconut oil, like the US, Canada, and most of Europe. You will need to visit big grocers in these countries to find different varieties of coconut oil. You can also get coconut oil easily at grocery stores in localities which have higher populations of people from India, Thailand, Sri Lanka, Philippines, and coastal Africa. Obviously, you can order it online as well and have it delivered wherever you live.

Which brand to buy?: It is not a problem if someone in your village extracts coconut oil (quite normal in Philippines, Thailand, Burma, coastal India, Sri Lanka etc.) and you know that person well or see him/her expelling the oil. But when you are buying coconut oil in packs, go for the reliable and reputable brands. Read the contents carefully and check the manufacturing date (although coconut oil has a long shelf life, fresher is still better).

How much to pay? This is a really difficult question to answer. The price of coconut oil depends on many factors such as its availability (cheaper where it is produced and more costly in other places, and it is even more expensive when ordered via phone, Internet etc.). The price is also effected by demand, variety (the refined one costs the least, followed by the fractionated, the virgin, the organic and the organic virgin coconut oils), brand, and quantity (buying in bulk costs a little less).

How much to buy? Buy only as much you can consume in few months, because despite the fact that coconut oil does not go rancid for a long time, it is not wise to store it unnecessarily. You will get better results with fresh coconut oil.

Storage: After you buy coconut oil, the next question should relate to storage. In colder countries, coconut oil comes in good, broad containers. However, if you get it in a pack (tetra-pack or plastic pouch), after opening the pack, be sure to keep the oil in containers with tight lid and broad mouth so that you can scoop it out with a spoon if it solidifies. Keeping it sealed or lidded is necessary because there are other admirers of coconut oil (ants, cockroaches, other insects and rodents just love it!).