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Archive for August, 2010

Price is what you pay. value is what you get.

– Warren Buffett

Every investor dreams of becoming as successful as Warren Buffett, to be the richest person in the world. But rarely do these investors follow their icon’s mantras conversed through television interviews, books, periodic journals, etc. It is worthwhile to pay heed to Buffett’s stock investing tips. this knowledge on value investing will help drive investors to make sound investment decisions.

1: Invest in quality businesses, not in stock symbols

If a business does well, the stock eventually follows.

Most investors don’t analyse the businesses they invest in. they simply follow the symbols or brands of successful corporate houses. the best example is the Reliance Power IPO. when the IPO of Reliance Power was announced, many investors rushed to subscribe to it with the reason that it had the brand name ‘Reliance’. However, the stock was overvalued at the time of IPO and investors made a considerable loss after the stock was listed on the stock exchange.

When considering IPOs, one needs to do considerable research about the concerned company, it’s past performance, how the IPO money will be utilised, details about the company management, and when the operations will commence so that company starts generating profits.
As, Buffett states, ‘An investor needs to buy the stock as if he is buying the whole company down the road’. Investors are also expected to be acquainted with the following before buying the company stock:

• what are the company’s products?

• How consistent is its products’ sales?

• How receptive is the company to change in consumer trends?

• Who are its competitors? what distinguishes it from them? what is the company’s USP?

• what would be the most worrying thing (risk) about owning such a company’s stock?

2: Don’t invest for 10 minutes if you’re not prepared to invest for 10 years

Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.

Investors get panicky when they track share prices continuously. Share prices are quite volatile in the short-term. However staying invested in a value company will pay you rich rewards over a long-term period, unlike short-term investments that are prone to constant price fluctuations.
Note: A smart investor needs to also think before selling an investment that may be in a loss due to certain economic factors but has tremendous potential to rise in future.

3: Scan thousands of stocks and look for screaming bargains

It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

A smart investor needs to identify stocks of a company that have great potential to grow in years to come. Most investors buy a stock when it is extremely high because it’s in demand. the key is to identify stocks which have potential to grow and are available at a cheap or reasonable price.
Such acumen can be achieved by scanning the company’s annual financial reports, understanding its vision and mission statements, its business cycle and business process, long term plans, etc.

Essentially, it means taking some time out to carefully understand and analyse the company and its business. Investors also need to keep updates of their selected companies and sector news on a regular basis. Information about a company is readily available through secondary sources such as journals, economic newspapers, television, etc. Many a time such secondary sources are sufficient for analysing and arriving at a decision for investment.

4: Interpret how well money is being utilised by the company’s management

Beware of geeks bearing formulas.

The money available to the company’s management is called capital. the capital comprises the equity and long-term debt of the company. the success of any business depends on how well its management uses its capital. such an analysis can be made with the help of 2 ratios: Return on
Equity (ROE) and Return on Capital Employed (ROCE).

ROE: It measures a company’s profitability by revealing how much net profit a company generates through shareholders’ equity.
Return on Equity = Net profit / Shareholder’s equity

ROCE: It indicates the efficiency and profitability of a company’s invested capital; calculated as:

ROCE = EBIT/ Total assets – Current liabilities

EBIT = Earnings before interest and tax deductions

A smart investor must interpret the company’s financial statements and understand the quality of return on his investment.

One needs to search and invest in companies with good returns on capital invested while employing little or no debt. this means that ROE and ROCE should essentially be the same.

5: Stay away from so-called ‘glitter’ stocks

Rule no 1: Never lose money. Rule no 2: Never forget rule no.1.

There are thousands of stocks traded each day on Sensex and Nifty. A smart investor has to find the best out of the available investment options. there are stocks that have high trading volume, extreme movements in their price (either up or down), or are constantly in news.
A smart investor should examine whether the stock-in-news has some real value or is just glittering at the moment.

For example, remember the Satyam fiasco? the stock was glittering for many years and was a hot pick among investors and analysts alike until its accounting fraud surfaced in 2008 when Ramalinga Raju (the company’s mentor) confessed to the crime. the company tampered its annual reports and fooled investors for years, all the time being ‘A-listed’ on national stock exchanges.

Although the episode is behind us now, it is wise to do your homework before investing in each and every company. you would also be wise to diversify your investments across sectors and asset classes, which will give you the needed cushion from loss from any one investment.

6: Wait for a fat pitch then decide what to do with it

Value is what you get.

Wait…wait…wait until everything is in your favour while buying a stock. these are the stocks with the highest chance of being successful and making you money year after year. To be able to do this effectively, one needs to master the below steps as suggested by Buffett.
As mentioned earlier, invest in stocks that are not glittering on investment magazines or recommended by stock analysts/editors on popular television channels. Perform your own research then make vital investment decisions.

After identifying great businesses to invest in at a fair price, buy a “meaningful amount of stocks in them”. That means hold only a limited number of companies in your portfolio; holding excess stocks results in lower returns on your overall portfolio and spending more time to keep track of the same. this may also add considerable risk as it is not feasible for an individual to diligently observe all companies in his/her portfolio.

Ideally, one should limit the number of stocks in his/her portfolio to 10-15. this way, there is an advantage of your portfolio not being cluttered.

Buffett elaborates about knowledge and confidence. according to him, one must require the knowledge of selecting the right stocks by careful research and also build confidence in one’s decisions. Market will test your patience to reach the expected returns. So, you need to stay firm with your investment decisions during volatile trading sessions. Do a good amount of homework and keep faith in your research and decisions.

7: Calculate how much money you will make…

…not whether the stock is undervalued or overvalued, according to some academic model such as the discounted cash flow.

Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.

A smart investor needs to keep an eye on expected returns from particular stocks in the long term and calculate the entry and exit prices of invested companies. this requires thorough research and analysis of the company’s available data. Buffett recommends being one’s own analyst to profit from investing in stocks.

8: Remove the weeds and water the flowers — not the other way around

Someone’s sitting in the shade today because someone planted a tree a long time ago.
One of the best practices according to Buffett is to sell loss-making stocks during a bull run and buy the winner stocks during a bear hug.

The amount realised by discarding loss-making stocks can be utilised to invest in stocks with future growth potential and there by achieving better returns.

9: become a conscious investor

It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.

Most of the time investors make little progress due to insensible investment decisions. Their decisions are based on emotion, hope and wishful thinking without carrying out proper research and analysis.

It’s necessary for a smart investor to think logically while investing and performing research. you need to keep on asking yourself why you want to invest in a particular company and eliminate decision-making based purely on intuition, emotion and herd mentality.

Due diligence before investing in a particular company saves you from the worry of your money being tied-up in companies and businesses that you have little or no knowledge about.
So follow the sound advice provided by Warren Buffett — avoid the noise and glitter, do your own research, and constantly update your knowledge and stock-picking skills.

In short, be a smart investor!

~*~ HeRe I aM ~*~: 9 investment lessons to learn from Warren Buffett

1943: (13 years old)

* Buffett filed his first income tax return, deducting his bicycle as a work expense for $35.

1945: (15 years old)

* in his senior year of high school, Buffett and a friend spent $25 to purchase a used pinball machine, which they placed in a barber shop. Within months, they owned three machines in different locations.

1949: (19 years old)

* in 1949, he was initiated into Alpha Sigma Phi Fraternity while an undergraduate at the Wharton Business School at the University of Pennsylvania. His father and uncles were also Alpha Sigma Phi brothers from the chapter at Nebraska, where Warren eventually transferred.

1950: (20 years old)

* Buffett enrolled at Columbia Business School after learning that Benjamin Graham and David Dodd, two well-known securities analysts, taught there.

1951: (21 years old)

* Buffett discovered Graham was on the Board of GEICO insurance at the time. After taking a train to Washington, D.C. on a Saturday, Buffett knocked on the door of GEICO’s headquarters until a janitor allowed him in. there, he met Lorimer Davidson, the Vice President, who was to become a lasting influence on him and life-long friend.
* Buffett graduated from Columbia and wanted to work on Wall Street. Buffett offered to work for Graham for free but Graham refused. he purchased a Sinclair gas station as a side investment, but that venture did not work out as well as he had hoped. meanwhile, he worked as a stockbroker. during that time, Buffett also took a Dale Carnegie public speaking course. Using what he learned, he felt confident enough to teach a night class at the University of Nebraska, “Investment Principles.” the average age of the students he taught was more than twice his own.

1952: (22 years old)

* Buffett married Susan Thompson.

1954: (24 years old)

* Benjamin Graham offered Buffett a job at his partnership with a starting salary of $12,000 a year. here, he worked closely with Walter Schloss.
* Susan had her first child, Howard Graham Buffett.

1956: (25 years old)

* Benjamin Graham retired and folded up his partnership.
* Buffett’s personal savings are now over $140,000.
* Buffett returned home to Omaha and created Buffett Associates, Ltd., an investment partnership.

1957: (27 years old)

* Buffett had three partnerships operating the entire year.
* Buffett purchased a five-bedroom, stucco house on Farnam Street for $31,500.
* Susan was about to have her third child.

1958: (28 years old)

* Buffett had five partnerships operating the entire year.

1959: (29 years old)

* Buffett had six partnerships operating the entire year.
* Buffett was introduced to Charlie Munger.

1960: (30 years old)

* Buffett had seven partnerships operating the entire year.
* the partnerships were: Buffett Associates, Buffett Fund, Dacee, Emdee, Glenoff, Mo-Buff, and Underwood.
* Buffett asks one of his partners, a doctor, to find ten other doctors who will be willing to invest $10,000 each into his partnership. Eventually, eleven doctors agreed to invest.

1961: (31 years old)

* Buffett revealed that Sanborn Map Company accounted for 35% of the partnerships’ assets.
* Buffett explained that in 1958, Sanborn sold at $45 per share when the value of the Sanborn investment portfolio was $65 per share. this meant buyers valued Sanborn at “minus $20″ per share, and buyers were unwilling to pay more than 70 cents on the dollar for an investment portfolio with a map business thrown in for nothing.
* Buffett reveals that he earned a spot on the board of Sanborn.

1962: (32 years old)

* Buffett’s partnerships, in January 1962, had in excess of $7,178,500 of which over $1,025,000 belonged to Buffett.
* Buffett merges all partnerships into one partnership.
* Buffett discovered a textile manufacturing firm, Berkshire Hathaway. Buffett’s partnerships began purchasing shares at $7.60 per share.

1965: (35 years old)

* When Buffett’s partnerships began aggressively purchasing Berkshire they paid $14.86 per share while the company had working capital (current assets minus liabilities) of $19 per share, this did not include the value of fixed assets (factory and equipment).
* Buffett took control of Berkshire Hathaway at the board meeting and named a new President, Ken Chace, to run the company.

1966: (36 years old)

* Buffett closes the partnership to new money.
* Buffett wrote in his letter “unless it appears that circumstances have changed (under some conditions added capital would improve results) or unless new partners can bring some asset to the partnership other than simply capital, I intend to admit no additional partners to BPL.”
* in a second letter, Buffett announced his first investment in a private business — Hochschild, Kohn, and Co, a privately owned Baltimore department store.

1967: (37 years old)

* Berkshire paid out its first and only dividend of 10 cents.

1969: (39 years old)

* following his most successful year, Buffett liquidated the partnership and transferred their assets to his partners. Among the assets paid out were shares of Berkshire Hathaway.

1970: (40 years old)

* as chairman of Berkshire Hathaway, began writing his now-famous annual letters to shareholders.

1973: (43 years old)

* Berkshire began to acquire stock in the Washington Post Company. Buffett became close friends with Katharine Graham, who controlled the company and its flagship newspaper, and became a member of its board of directors.

1979: (49 years old)

* Berkshire began to acquire stock in ABC. With the stock trading at $290 per share, Buffett’s net worth neared $140 million. However, he lived solely on his salary of $50,000 per year.
* Berkshire began the year trading at $775 per share, and ended at $1,310. Buffett’s net worth reached $620 million, placing him on the Forbes 400 for the first time.

1988: (58 years old)

* Buffett began buying stock in Coca-Cola Company, eventually purchasing up to 7 percent of the company for $1.02 billion. it would turn out to be one of Berkshire’s most lucrative investments, and one which he still holds.

1999: (69 years old)

* Buffett is named the top money manager of the 20th century in a survey by the Carson Group, ahead of Peter Lynch and John Templeton.

2002: (72 years old)

* Buffett entered in $11 billion worth of forward contracts to deliver US dollars against other currencies. By April 2006, his total gain on these contracts was over $2 billion.

2004: (73 years old)

* His wife, Susan, dies.

2006: (75 years old)

* Buffett announced in June that he would give away more than 80%, or about $99 billion, of his $491 billion fortune to five foundations in annual gifts of stock, starting in July 2006. the largest contribution will go to the bill and Melinda Gates Foundation.

2007: (76 Years old)

* in a letter to shareholders, Buffett announced that he was looking for a younger successor or perhaps successors to run his investment business. Buffett had previously selected Lou Simpson, who runs investments at Geico, to fill that role. However, Simpson is only six years younger than Buffett.

2008: (77 Years old)

* Buffett becomes the richest man in the world according to Forbes.

[..MAVERICK..]: Warren Edward Buffett’s Time Line – World’s Richest Man

Gold American Mining Corp (SILA.OB) may have struck gold in Mexico.

The company has just announced additional positive results from its Guadalupe property located in the heart of the Fresnillo district Zacatecas, Mexico. the precious metals exploration company says that nine veins have now been mapped within the property and that fieldwork continues to identify additional veins.

“The fast pace of exploration achieved on the property since we started operations in late April has expanded considerably our knowledge of the property and reaffirmed our intentions to drill its main objectives,” said Johannes Petersen, President of Gold American. “We are very excited with our findings to date. as soon as we receive the final report and maps of the recently completed geophysics campaign, we will be able to finalize the design of the drilling program and initiate the permitting process with a view at a commencing drilling before the end of the year.”

Based in Reno, Gold American is focused on the aggressive, ongoing acquisition and exploration of holdings with rich gold and silver production potential

More about SILA at: www.gold-american.com

Capstone Turbine Corporation (Nasdaq:CPST), the world’s leading clean technology manufacturer of microturbine energy systems, recently received an order for 18 C65 microturbines for one of the world’s largest independent oil and natural gas companies.

Capstone distributor Pumps & Service received its second order in the past eight weeks from a major oil and gas company exploring large shale reserves – or plays – in the United States. the market for Capstone turbines and microturbines in this industry is vast. the market is expected to grow substantially, especially since the U.S. Environmental Protection Agency’s (EPA) Clean Air Act has strict requirements for emissions levels at natural gas sites.

More about CPST at: www.capstoneturbine.com

3D Systems (Nasdaq:TDSC) announced today that it plans to exhibit the benefits of its growing Aerospace Manufacturing capabilities at the Association for Unmanned Vehicle Systems International, AUVSI 2010 Conference and Exposition. the company’s suite of design-to-manufacturing solutions and services will be on display at the Colorado Convention Center in Denver, CO, August 24 – 27th, booth 2728.

More about TDSC at: www.3DSystems.com

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CPST, TDSC, SILA, CRWEWallstreet.com Stock Report! August 23th 2010

Does anyone know how to invest in the Rogers International COmmodities Index (http://en.wikipedia.org/wiki/Rogers_International_Commodity_Index) by Jim Rogers?

Is there a ticker for this index? when I try "RICI" multiple things come up.
Also, can this index be traded from online brokers like Scottrade and Etrade?

Any direction is helpful.

que isso uma feis flamengo sempre flamengo rsrsrs kkk

Invest in FX Funds Group if you would like to make 2 – 15% per month

search for myfxfunds in google search engine for more information.

Try ETF's: RJI, RJZ, RJN, RJA………some have performed ok vs Mkt, check out JJC and LD also, 2 commodities which are touted to be in very short supply currently…

How to invest in the Jim Rogers International Commodities Index?

SKS IPO opens from July 28-30 for institutional buyers and on August 2 for others.

SKS Microfinance, India’s largest microfinance entity, has roped in another blue-chip investor as its IPO debut date draws near. the latest to invest in the firm is Quantum (M) ltd, the billionaire investor George Soros’ hedge fund. 

Quantum has picked up around 3 lakh shares in the company from existing shareholder Yatish Trading Company Pvt ltd. Quantum will hold a 0.4% stake post the issue while Mumbai-based securities firm Yatish will have a 2.2% holding.

The other investors in SKS include Sequoia Capital India, Infosys chief mentor N R Narayana Murthy and Vinod Khosla, among others. the shares were acquired by Quantum for a total sum of Rs 19.08 crore, translating into Rs 636 per share. the share price is equal to the price paid by hedge fund Tree Line Asia, which picked up 2.3%   stake in SKS through slew of secondary transactions earlier this year.

Various reports have pegged the price band of the issue between Rs 650 and Rs 700 per share. this may put the mopup at anywhere between Rs 1,090 crore and Rs 1,175 crore. the Red Herring Prospectus of Hyderabad-based SKS says the MFI is looking sell around 16.8 million shares. Various reports have also said that the issue may give a discount to retail investors.

SKS IPO opens on July 28 and closes on July 30, 2010 for qualified institutional buyers and on August 2 for others.

Murthy’s recently launched $129 million venture capital fund Catamaran invested Rs 28.12 crore in January this year. the investment has been made through Catamaran Management Services Pvt ltd and the firm will hold a 1.3% stake in SKS post-issue.  

George Soros' Quantum Picks Up Stake In IPO-Bound SKS For Rs 19Cr

I just finished listening to an audio book – The Snowball: Warren Buffett and the Business of Life. it is a biography of Warren Buffet who is one of my heroes. The audio book is 37 hour long and is very addictive. I could not stop listening to the audio book until it was finished.

Buffett is an extraordinary human being. one learns a lot from his biography. however, since I usually don’t listen to audio books, I don’t remember most of what I heard:-) after being in awe for 37 hours. following are a few random things I remember:

1. Buffett never acquired a company with a hostile takeover.

2. one should always have “margin of safety” when making investments. What that means is that one should not make investments where there is a risk of losing money if things don’t go according to the plan.

3. it is not a good idea to be on company boards where one doesn’t have any influence on the CEO.

4. Praise the individual and criticize the category. Buffett followed Dale Carnegie principles for human relations.

5. Charlie Munger played a critical role in changing how Buffett thought about investments.

6. Time is the friend of the wonderful business, the enemy of the mediocre.

7. Allies are essential.

8. Commitments are so sacred that by nature they should be rare.

9. Grandstanding rarely gets anything done.

10. one should think independently.

11. Work for people you admire and do business with people you like.

12. Protect your reputation at any cost.

13. The best way to solve a problem is to invert. for example, if you want to buy something think about why the other party is selling.

14. Society plays a big role in one’s success. If bill Gates were born in Bangladesh, he would not have been successful. Buffett calls being born in the right society which gives you opportunities to succeed as winning the ovary lottery.

15. 2008 was not the first time when the government help bail out private banks. The fed intervened to bail out LTCM in 1998.

16. be fearful when others are greedy, be greedy when others are fearful.

17. History does not tell you the future.

18. Doing a job just because it looks good on your resume is like saving sex for old age. Do a job that you like.

19. when you are buying a stock, you are buying a piece of the business.

20. The most important factor that made Buffett successful is Focus. And, bill Gates has the same opinion about the importance of Focus.

21. Stay within your circle of competence when making decisions.

22. Invest in business which have Sustainable Competitive Advantage or a “moat” around them.

This is in no way the complete list. Just a teaser to encourage you to read the book:-)

CDOQ-Chander’s Diary of Observations and Questions: Warren Buffett and the Business of Life

Traders who held off purchasing the common currency on June 18, when Gartman calledit “doomed,” missed an 7.2 percent return. Buying on may 6 when European Central Bank President Jean-Claude Trichet said the euro was a “good store of value,” earned 5.23 percent. Photographer: Hannelore Foerster/Bloomberg

Aug. 9 (Bloomberg) — Lauren Rosborough, a senior currency strategist at Westpac Banking Corp., talks about the outlook for the euro versus the dollar. she speaks with Linzie Janis on Bloomberg Television’s “Start up.” (Source: Bloomberg)

The euro’s rally from a four-year lowin June resulted in losses for followers of bears from Paul Volcker to Dennis Gartman.

Since Volcker, the 82-year-old former Federal ReserveChairman, said may 13 the euro may face “disintegration,” it’sup 5.99 percent against the dollar. Traders who held offpurchasing the common currency on June 18, when Gartman calledit “doomed,” missed a 7.3 percent return. Buying on may 6,when European Central Bank President Jean-Claude Trichet saidthe euro was a “good store of value,” earned 5.28 percent.

While the rebound from $1.1877 on June 7 was sparked by aEuropean Union-led 750 billion-euro ($996 billion) regional aidpackage and a strengthening German economy, the pessimists suchas Jim Rogers say the gains won’t last. they are betting thatthe currency area will split as austerity measures undertaken byGreece, Spain, Portugal and other nations curb growth and widenthe rift with stronger member states.

“The euro has had a spectacular bounce,” said Gartman,59, editor of the Gartman Letter in Suffolk, Virginia. “Wereall of the problems that were attendant and discussed and soobvious in February, March and April of this year, have theybeen alleviated? not even slightly. The major trend for the eurois still toward disintegration.”

Strategists and economists calling for the euro’s demisegrew abundant as the currency weakened 15 percent in the firsthalf of 2010, driven lower by a deepening debt crisis that ledGreece to the brink of default. Economist Gary Shilling, whopredicted the recessions in 1969 and 1991, according to hiswebsite, called for parity with the dollar on Feb. 18.

Now, attention has shifted to the U.S., where a governmentreport last week showed companies hired fewer workers in Julythan economists forecast, adding to evidence the recovery issputtering. Rogers, who predicted the start of the globalcommodities rally in 1999, said he bought the euro in June atabout $1.20 because sentiment turned too negative, even as hepredicted its demise in 10-15 years.

The euro slipped 0.3 percent to 1.3242 at 12:50 p.m. todayin London after rising to $1.3308 earlier.

“The recent events have weakened the euro from within bypropping up its bankrupt members,” said Rogers, 67, chairman ofRogers Holdings in Singapore and author of “A Bull in China.”“I don’t expect the euro to survive.”

The manager of the world’s largest hedge fund focused oncurrencies says he is still expects Greece to default, followedby Spain.

“As time goes on, we’re going to see the Greek numbers andSpanish numbers look worse than we expected,” John Taylor, whooversees $7.5 billion as chairman of FX Concepts LLC in NewYork, said last week in a Bloomberg Television interview.

Data from Europe has proved the bears wrong. Trichet saidAug. 5 the euro-area economy is strengthening faster thanforecast and that money markets are improving as the regionrecovers from the sovereign-debt crisis.

“The available data for the third quarter are better thanexpected,” Trichet said in Frankfurt after ECB policy makerskept their benchmark interest rate at a record low of 1 percent.“The market is functioning a little bit better.”

Growth in Europe’s services and manufacturing industriesaccelerated in July. a composite index based on a survey ofeuro-area purchasing managers in both industries rose to 56.7from 56 in June, Markit Economics said Aug. 4. Germany’s Ifoinstitute said July 23 its business climate index rose to 106.2,the highest level in three years, as exports jumped.

Relative yields on Europe’s junk bonds were poised to fallbelow their U.S. counterparts for the first time since June 2008amid diminishing concern about the debt crisis, Bank of AmericaMerrill Lynch indexes showed on Aug 5.

The extra yield investors demand to own Spanish 10-yearbonds instead of similar-maturity benchmark German debt shranklast week to 153 basis points, or 1.53 percentage points, afterclimbing to a euro-era high of 221 basis points on June 16.Spain, Portugal, Ireland and Greece successfully auctioned morethan 33 billion euros of bonds and bills since the beginning ofJuly, according to data compiled by Bloomberg.

“I was glad to see the euro come back to the $1.20, $1.25,$1.30 range,” Robert Mundell, 77, a Columbia Universityprofessor who won the Nobel Prize in 1999 for research thathelped lay the foundation for Europe’s single currency, said ina Bloomberg Television interview on July 11 in Siena, Italy.“This is a better range for it because going down to $1.18 isexaggerating the risks to the euro.”

U.S. data reinforced concern the recovery is petering out.Private payrolls that exclude government agencies rose by 71,000last month, less than the 90,000 predicted in a Bloomberg surveyof economists, Labor Department figures in Washington showed onAug. 6.

The Dollar Index, which IntercontinentalExchange Inc. usesto track the currency against those of six U.S. trading partnersincluding the U.K., Canada and Japan, slid for the ninthconsecutive week, the longest stretch since 2004.

Greece should qualify for a 9 billion-euro instalment ofemergency loans after showing “great progress” in implementingthe cuts it accepted to qualify for the aid, Poul Thomsen, headof the IMF’s mission to Greece, said in Athens on Aug. 5. Thenation aims to cut its deficit to 8.1 percent of gross domesticproduct this year, from 13.6 percent in 2009, and meet the EU’s3 percent limit by 2014. Portugal said it plans to reach the EUtarget by 2012, reducing it from 9.4 percent last year.

‘Political Capital’

“The market realized that the politicians in euro-landhave invested a lot of political capital towards this europroject,” said Thanos Papasavvas, who helps manage more than $5billion in currencies at Investec Asset Management ltd. inLondon. “They’re going to address the underlying economicissues to ensure its sustainability.”

Papasavvas, who was a euro bear from January until earlyJune, reversed his bet and now owns a greater percentage of thecurrency than is contained in benchmark indexes, he said.

Analysts predict the euro will decline this year even asthey revise their estimates higher. The currency will end 2010at $1.22, according to the median of 40 forecasts compiled byBloomberg. it was $1.18 on July 2, the data show.

“Parity is still going to happen,” said Shilling, 73,president of economic research firm a. Gary Shilling & co. inSpringfield, new Jersey. “I don’t think the fundamentaldifferences within the euro-zone have changed. I have a seriousquestion as to whether the euro-zone can continue, at least inits current form.”

Coordinated Planning

Shilling, who was correct in all 13 of his investmentguidelines for 2008, said Greece, probably Portugal and possiblySpain will be forced to restructure their sovereign debt.

Since the fiscal crisis began, euro-region officials havebeen working on proposals to better coordinate budget planning,strengthen penalties for rules violators and put in place apermanent backstop for countries in trouble.

Some euro members are showing signs of weakness as thefiscal cuts sap growth. Spain’s unemployment rate unexpectedlyincreased to 20.09 percent in the second quarter, the most since1997, a report showed July 30. Greece’s economy probably shrank3.4 percent in the three months to June, extending the nation’srecession to six quarters, according to a Bloomberg survey ofeconomists before the report Aug. 12.

The euro is still down 7.38 percent for the year asmeasured by Bloomberg Correlation-Weighted Indexes, whichmeasure foreign-exchange rates against a basket of currenciesfrom the Group of 10 nations proportioned by how they tradeagainst each other.

Pimco ‘Cautious’

While the euro became a rival to the dollar after itsinception in 1999, the debt contagion that began in Greece ledVolcker to say may 13 in London that he’s concerned the Europeanarea may break up. Volcker wasn’t available to comment.

“The hoped-for outcome on the part of the ECB, or Germanor French policy makers is countries make their adjustments andthe currency union becomes much stronger,” said Andrew Balls,London-based head of European portfolio management at PacificInvestment Management co., which runs the world’s biggest mutualfund.

“The other end of the distribution, you could haverestructuring by one or more countries and you could even havecountries leave the euro-zone. The fact that you have such awide range of possible outcomes makes us cautious.”

To contact the reporters on this story:Bo Nielsen in Copenhagen at bnielsen4@bloomberg.net;Catarina Saraiva in new York at asaraiva5@bloomberg.net.

Euro Returns 5% for Bulls Who Acted as Trichet Defied Breakup

how can i get to link for that. i want to update information for that, is there any site(free site will be great)

i dont tink there is sorry

Its a bit more complicated than that.
You would have to have access to wholesalers and/or growers, since the price of green beans varies from country to country and region to region that its grown in, different growers/co-op, and even different lots from the same growers/co-op.

How can i know green coffee beans prices in stock market?

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Smart individuals occasionally make dumb mistakes when it comes to investing. part from the cause for this, I guess, is that most people do not have the time to learn what they have to know to make good decisions. An additional purpose is the fact that oftentimes when you make a dumb mistake, somebody else—an investment salesperson, for example—makes money. Fortunately, it is possible to save yourself lots of cash and a bunch of headaches by not producing negative purchase decisions.

Don’t Forget to Diversify

The typical inventory market return is 10 percent or so, but to earn 10 % you have to own a broad range of stocks and shares. In other words, you must diversify.

Everybody who thinks about this for a lot more than a couple of minutes realizes that it can be true, but it’s amazing how many individuals really don’t diversify. for instance, some people maintain massive chunks of their employer’s stock but little else. or they own a handful of stocks inside the very same industry.

to produce cash on the stock options market, you’ll need around 15 to 20 shares in a variety of industries. (I didn’t just make up these figures; the 15 to 20 amount comes from a statistical calculation that several upper-division and graduate finance textbooks explain.) With fewer than 10 to 20 stocks and shares, your portfolio’s returns will really likely be some thing higher or much less than the stock options industry typical. Needless to say, you don’t care if your portfolio’s return is greater than the stock industry common, but you do care if your portfolio’s return is less than the inventory marketplace average.

by the way, to be fair I should tell you that some extremely bright individuals disagree with me on this enterprise of holding 15 to 20 stocks. for example, Peter Lynch, the outrageously profitable former manager of the Fidelity Magellan mutual fund, suggests that person investors hold 4 to 6 stocks and shares that they realize well.

His feeling, which he shares in his books, is always that by following this strategy, an person investor can beat the stock options marketplace common. Mr. Lynch understands more about picking stocks than I ever will, but I nonetheless respectfully disagree with him for two causes. First, I believe that Peter Lynch is 1 of those modest geniuses who underestimate their intellectual prowess. I wonder if he underestimates the effective analytical skills he brings to his stock options picking. Second, I think that most individual investors lack the accounting knowledge to accurately make use with the quarterly and annual monetary statements that publicly held firms offer inside the techniques that Mr. Lynch suggests.

have Patience

The stock industry and other securities markets bounce close to on a everyday, weekly, and even yearly basis, but the general trend more than extended periods of time has usually been up. Because Planet War II, the worst one-year return has been –26.5 percent. The worst ten-year return in recent history was 1.2 percent. those numbers are pretty scary, but things appear a lot better if you look longer term. The worst 25-year return was 7.9 % annually.

It’s essential for investors to have patience. there will probably be numerous poor a long time. many times, one bad 12 months is followed by an additional negative year. but above time, the great many years outnumber the poor. They compensate for the negative many years as well. Patient investors who stay inside the industry in each the great and negative a long time almost usually do better than people who try to follow each fad or purchase last year’s hot stock options.

You may already know about dollar-average investing. instead of buying a set quantity of shares at typical intervals, you purchase a regular dollar amount, such as $100. If the share cost is $10, you purchase ten shares. when the share cost is $20, you buy five shares. In the event the share price is $5, you purchase twenty shares.

Dollar-average investing offers two advantages. The biggest is always that you regularly invest—in each good markets and negative markets. Should you purchase $100 of stock at the beginning of every month, for example, you do not stop buying stock if your industry is way down and each economic journalist in the planet is working to fan the fires of fear.

The other advantage of dollar-average investing is always that you acquire a lot more shares if your cost is low and fewer shares once the price is higher. Like a result, you really don’t get carried away on the tide of optimism and end up getting most with the inventory when the industry or even the stock options is up. inside the exact same way, you also do not get scared away and stop buying a stock options when the market or the inventory is down.

One of the easiest ways to implement a dollar-average investing program is by participating in some thing like an employer-sponsored 401(k) program or deferred compensation plan. With these plans, you successfully invest every time cash is withheld from your paycheck.

to produce dollar-average investing work with person stocks, you have to dollar-average each stock options. In other words, if you’re getting stock options in IBM, you have to purchase a set dollar amount of IBM stock every month, each quarter, or whatever.

Don’t Ignore Purchase Expenses

Investment expenses can add up quickly. Small differences in expense ratios, costly expense newsletter subscriptions, on the internet monetary services (such as Quicken Quotes!), and earnings taxes can very easily subtract hundreds of thousands of dollars from your net worth more than a lifetime of investing.

to show you what I mean, here are a couple of fast examples. Let’s say that you’re saving $7,000 per year of 401(k) funds in several mutual funds that track the Regular & Poor’s 500 index. A single fund charges a 0.25 percent annual expense ratio, and the other fund charges a 1 percent annual expense ratio. In 35 a long time, you’ll have about $900,000 in the fund with the 0.25 % expense ratio and about $750,000 within the fund with the 1 percent ratio.

Here’s another instance: Let’s say that you don’t spend $500 a yr on a special investment newsletter, but you instead stick the funds inside a tax-deductible expense such as an IRA. Let’s say you also stick your tax savings within the tax-deductible investment. After 35 a long time, you’ll accumulate roughly $200,000.

Purchase costs can add up to really big numbers when you realize that you simply could have invested the funds and earned interest and dividends for many years.

Don’t get Greedy

I wish there was some risk-free way to earn 15 or 20 percent annually. I really, really do. but, alas, there isn’t. The inventory market’s average return is somewhere between 9 and 10 %, depending on how several decades you go back. The significantly a lot more risky little business stocks and shares have done slightly much better. on common, they return annual profits of 12 to 13 %. Fortunately, you can get rich earning 9 percent returns. You just need to take your time. but no risk-free investments consistently return annual profits significantly above the stock market’s long-run averages.

I mention this for a simple reason: Individuals make all sorts of foolish purchase decisions when they get greedy and pursue returns that are out of line with the typical annual returns with the stock options industry. If someone tells you that he has a sure-thing purchase or expense strategy that pays, say, 15 percent, do not believe it. And, for Pete’s sake, don’t buy investments or purchase advice from that person.

If someone really did have a sure-thing method of producing annual returns of, say, 18 %, that person would soon be the richest person in the globe. With solid year-in, year-out returns like that, the person could run a $20 billion expense fund and earn $500 million a year. The moral is: there is no such thing like a sure thing in investing.

Don’t get Fancy

for many years now, I’ve made the much better part of my living by analyzing complex investments. Nevertheless, I believe that it makes most sense for investors to stick with simple investments: mutual funds, specific shares, government and corporate bonds, and so on.

being a practical matter, it’s really difficult for folks who haven’t been trained in financial analysis to analyze complex investments for example real estate partnership units, derivatives, and cash-value life insurance. You must understand the best way to construct accurate cash-flow forecasts. You must know how you can calculate things like internal rates of return and net present values with the data from cash-flow forecasts. Financial analysis is nowhere near as complex as rocket science. Still, it’s not something it is possible to do without a degree in accounting or finance, a computer, and a spreadsheet program (like Microsoft Excel or Lotus 1-2-3)

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How You Can Prevent Dumb Investment Mistakes