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Recently I have picked up Peter Lynch's "Learn to Earn" book. he talks about a market multiple in the book and does a cross study of Nike and J&J and says that the market multiple was more than what J&J's PE was. Where can I find up to the minute or whatever market multiples? also, Where could I find inflation rates as well. I know that they are based upon the Consumer Price Index but I am not educated enough to figure it out based upon that. Thirdly, since I am in the education stage of stock investing, I would like to know if anybody can recommend a stock market simulator game that doesnt coincide with the real market but is simulated for the sake of learning at a faster pace than waiting for the markets. if I could find a game that does correspond to the markets that would be nice as well. of course I am looking for free games and no money involved. (Just thought I would make that clear) thanks for the info

Market multiple and inflation rates and other…?

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August 16, 2005 Unconventional Success: A Fundamental approach to Personal Investment

For the last 20 years, David Swensen has been the manager of Yale’s endowment. And the ol’ chappy has done the Eli proud. the Yalie fund has grown from a measly from $1.3 billion to a respectable UT-like $15 billion. Zounds and Huzzah for the money people!

Swensen then took pen to paper and was set to let all the wee widdle investors know how to invest just like Yale. but then, a funny thing happened on the way to Easy Street. the book’s thesis took a bit of a detour. I’ll let the Times take over (that’s The New York Times dear heart, not El Paso):instead, it shows why the little guy will never be able to invest the way Yale does.for all the “democratization” that has taken place in the world of personal investing the deck is still stacked against the individual. That was mr. Swensen’s fundamental discovery. And his willingness to change course and turn “Unconventional Success” into a polemic aimed primarily at mutual fund companies, but also at other Wall Street types who fleece the little guy, is to his everlasting credit. After all, he could have told us to buy stocks in companies whose products we buy at the supermarket, like a certain investment genius of a previous era. Any regrets about that advice, Peter Lynch?

Oh lord. Where to start? first, we take a shot at Peter Lynch! I’ve re-read this a few times, and it still comes out of nowhere. Why is Peter Lynch the bad guy? His style of investing hasn’t been shown up at all. in fact, it’s as relevant as ever.

Lynch’s main point over the years is to ignore professional investors. He even calls them an oxymoron. Lynch never said to buy stocks in companies whose products we buy at the supermarket. He says that “the amateur investor has numerous built-in advantages that, if exploited, should result in his or her outperforming the experts, and also the market in general.” He’s exactly right. but that’s only half of Lynch’s argument. He also takes down the pros.Lynch criticizes the group-think mentality of institutional investors who often have to clear their buys and sells past a committee. Lynch said that some of his best investments ideas have come from the power of common knowledge. That makes perfect sense, and I doubt mr. Lynch has any regrets.

Secondly, we learn that despite the democratization that’s taken place, “the deck is still stack against the little guy.” Democratization is even placed in scare quotes as if it’s been a scam from the get go. oh, please. Yes, Wall Street is being run by the evil plutocrats who are stomping on the throat of the little guy. Just the other day, I saw a phalanx of Morgan bankers marching down Broad Street, “Ooo – eeeee – hoo! Yooo – ho!” to be honest, they didn’t look that scary, but you get the idea.

Let’s be clear: the sole driver of Wall Street’s history for the last few decades has been the democratization of investing. This has been nothing short of a revolution. the changes have been stunning. Only 30 years ago there used to be fixed commission rates, no discount brokers, no decimal pricing, no IRAs, no 401k’s, no ETFs, no Reg FD, little of any disclose, no Sarbanes-Oxley. Ok, I could do without the last one, but at least they’re trying. in fact, one of the best books on the subject is “A Piece of the Action: How the Middle Class Joined the Money Class,” written by Joseph Nocera, the freakin’ author of this Times’ article (New York Times, not Northwest Indiana).

The article (Mr. Nocera) continues:when mr. Swensen first took over, Yale’s portfolio held stocks and bonds, period. Like most institutional portfolios of that time, “it was neither diversified nor particularly equity-oriented,” mr. Swensen recalled. Today, the endowment has barely 5 percent in bond holdings. “The other 95 percent,” he said, “are in places that we think will provide ‘equity like’ returns.” which is not to say it is all in equities. on the contrary, the Yale portfolio is extraordinarily diversified, which both lifts returns and protects against disaster.

No! No! A thousand times no! Diversification does not in and of itself increase your return. the whole idea of Modern Portfolio Theory is that you can use diversification to lower your risk (protect against disaster) without impacting your return. I’m not being pedantic here. This is the entire foundation of modern financial economics.

In just a few paragraphs, we’ve taken on a straw man and lost, and now we’ve bravely flattened the efficient frontier.

Let’s read on, shall we?At the end of the 2004 fiscal year, Yale had a mere 15 percent of its assets in domestic equities, and another 15 percent in foreign stocks. it had 15 percent in private equity, and 18 percent in “real assets,” which includes investments in timber and energy. but its biggest percentage, 26 percent, was in something called “absolute return.” That is a category invented by mr. Swensen in 1990. it means hedge funds.

This guy owns hedge funds and he’s complaining about how mutual funds fleece the little guy. Does he have any idea how much hedge funds charge? Also, is this guy a manager or does he just pick other managers?His new book has given mr. Swensen a greater appreciation of the enormous advantages he has as an institutional money manager, starting with the obvious fact that he has a staff that spends full-time researching investment possibilities. Thus, he takes it as a given that individuals shouldn’t pick stocks themselves. “I see every day how competitive the markets are, and how tough. so the idea that you can do this yourself, that’s out the window.”

He’s confusing cause and effect. the markets are competitive precisely because people are picking their own stocks. Yes, it’s hard to beat the market. Very hard. but if you’re well-diversified, it’s hard to lose to the market too. We never hear that part. for books like this, there are only victims. Wall Street is an unending drama of victims and exploitation, us against them. (Duck, I hear more guards coming!)

This is where the book drowns in its own conventionality. I’m sure the author believes he’s advocating self-denial and conservatism. Swensen indeed picks the right (and easiest) targets, but his entire view of the markets is wrong, wrong and wrong.

The financial markets are not a game of one side opposite another. That’s simply a metaphor that people use to understand how the market operates. It’s easy to understand. if you wanted to write a stock market book at any time for the last 70 years, just throw the words “big shot,” “fleeced,” “screwed,” and “little guy” in the title and off you go.

Just in the past few years, we’ve seen dozens of these types of books. the former head of the SEC even jumped in with “Take on the Street: what Wall Street and Corporate American Don’t want you to Know.” See. You’re the victim of “them.” Never of the SEC of course. Another one is “You got Screwed! Why Wall Street Tanked and How you can Prosper,” by someone calling himself James Cramer. I’m sure he means well.

This us-against-them view is just a metaphor and nothing else. Thanks to democratization, this metaphor is like some cartoon cat getting clanged on the head by the frying pan of reality. I guess that’s actually a simile, but you see where I’m going. I hate to break it to some people, but there’s no one “in charge” of the economy, or Wall Street. There’s no board room with a dozen fat bald white guys sitting around conspiring against you, and perhaps ruling the world during their breaks.

Financial markets are hugely decentralized structures with countless participants who aren’t coordinating with another, but they influence each other nonetheless. in fact, understanding this is one of the best arguments in favor of free enterprise. (James Surowiecki’s “The Wisdom of Crowds” is a good book on this subject.) Looking for Wall Street experts is like asking who’s the king of a traffic jam. it just doesn’t exist.what is it about mutual funds mr. Swensen finds offensive? Just about everything. He hates the way the loads and all the hidden fees mean that the investor is always behind the eight ball. (When I asked him about hedge fund fees, which are much higher, mr. Swensen replied: “I don’t mind paying a lot for actual performance. Besides, when we negotiate fees, it’s sophisticated investor versus fund manager. It’s a fair fight.”)

CrossingWallStreet.com: Unconventional Success: A Fundamental Approach to Personal Investment

Massive government farm subsidies, GMO seeds, Food production enough to feed 20 billion people at any one time. Evidence I got shows the contrary.

Because he is selling something.

(And actually that's usually the reason any time someone says something alarmist that does not really make any sense!)

Jim Rogers is into commodities so he analyzes the trends for instance in the farming or agriculture markets looking at crop yields and prices. I wouldn't bet against Jim Rogers since he's a Billionaire. Evidence can always be contrary. What you should be doing is looking for a way to invest to make money off your evidence or beliefs. good luck and make some money.

Why do people like Jim Rogers think there's a food crisis looming and invest in agriculture?

The gleam and bright lights of Wall Street lure in many new investors each year, only to send them home crying to their friends and family. why do so many people fail when it comes to the stock market? the reason is very simple: Hard work! most people are looking for a quick buck or a fast path to riches. this is not the case when it comes to investing in individual stocks. If you wish to invest in stocks, treat it like a business, NOT A HOBBY. For example: A retail outfit can’t make money if it doesn’t have goods to sell, the same goes for investors, without cash, you can’t invest. What do I mean? All investors need rules and you need to follow these rules or money WILL be LOST. If you lose your initial investment, you are out of business (just like the retail store). I don’t necessarily care what your rules are but they need to be proven and then followed to a “T”.

Think about this for a moment: how much time do you spend researching and following up on your investments? most people will spend more time researching their next car to buy, their next pair of sneakers, the best suit, the best dress, the best pasta sauce, etc. but these same people rarely spend more than 15 minutes a month researching their own stocks. I know of a person that spends hours clipping coupons (saving cents to a few dollars) but just minutes investing thousands in stocks.

This is why the majority of people FAIL at investing, because they don’t know what they are doing, they don’t care to know where their money is and they don’t know who to hire to invest their money. If you are not interested in learning how to invest properly using your OWN system of trial and error over many years, I suggest that you invest in mutual funds or similar diversified vehicles. Over the long run (minimum 20 years), mutual funds and dollar cost averaging will give you favorable results with minimal worries. I will elaborate into methods that can be used to invest successfully in individuals stocks in following articles.

Why the Majority Fail at Stock Investing

I just register WALL STREET SURVIVOR which is (Stock Trading) for fake money and my question is what kind of stocks would you recommend that will earn me a lot of $$$?

What kind of stocks would you recommend that will earn me a lot of $$$?

I mean he uses Berkshire Hathaway’s money to purchase the stocks, so who technically owns the stock, Buffett or Berkshire since a corporation is a seperate legal person?

Does Warren Buffett own all the stock of all those companies he buys?

http://www.moneyweek.com/file/49505/why-now-might-be-the-time-to-invest-in-taiwan.html

he and Geoge Soros used to run a fund.

Jim retired at 37 after making 100 x is money

in commodities .

Who is JIM ROGERS and where is he investing today ?

Lucas Remmerswaal is a man on a mission – a mission to change the way a whole generation approaches its finances.

But how does a Whangarei investment adviser and father-of-six plan on doing that? By writing children’s books inspired by the ideas and principles of American billionaire investor and philanthropist Warren Buffett – the world’s third wealthiest man.

Remmerswaal is in the process of producing an illustrated book for five-year-olds, another for 12 year-olds and a teaching aid for parents and teachers.

The books, both titled The 13 habits that made me $48 billion, inspired by Warren Buffett, have been illustrated by Australian artist Annette Lodge, who has published a number of her own children’s books.

Remmerswaal says he has invested $64,000 in the project so far.

“All our money outside the family home is invested in this project.”

But before approaching publishers, he wants to get Buffett involved, as he says that will be the key to his plan of launching the books on the Oprah Winfrey Show.

It’s a big dream – Buffett is bombarded by hundreds of unsolicited emails and calls every day, and has a loyal personal assistant whose job mostly involves fending off unwanted inquiries. But Remmerswaal hopes the books will help avoid another global financial crisis.

“Everyone did it wrong,” he says, referring to the greedy business practices that led to the recession. “Two billion dollars worth of retirees’ savings wiped off the face of the earth, just in new Zealand.

“I’m just a poor house husband that’s put his life savings on the line because I want to create a change from that Petricevic and Bryers thinking to Buffett thinking.”

He says financial gain is only a small part of his reason for starting the project, and if it is successful, he plans on donating much of the money to the Success for Students charitable trust that he set up with his neighbour.

The Buffett project has received high praise from education royalty – national standards specialist Professor John Hattie from the University of Auckland, who met Remmerswaal last week, and viewed the drafts of the books.

“I think he’s onto a winner and I think it’s a stunning project,” says Hattie. “The artwork alone is incredibly impressive, and that alone will engage young kids.”

Remmerswaal could be described as a Buffett obsessive. He has researched the Omaha, Nebraska-based businessman intensely since the late 1990s. He recently spent a week in Omaha trying to get a meeting with Buffett, to introduce him to the project, but to no avail.

Apparently, Buffett doesn’t answer his door to strangers.

There’s nothing particularly strange about Buffett fanaticism. There are thousands of “disciples” of the so-called “Oracle of Omaha” around the world. The annual shareholder’s meeting for his company, Berkshire Hathaway, fills an arena.

Despite being one of the richest companies on earth, the offices of Berkshire Hathaway occupy just a single floor of a modest office block in Omaha. Buffett, renowned for his frugality, employs only a handful of staff.

He reportedly gives 85 per cent of his net wealth to the bill and Melinda Gates Foundation and family charities, and lives in a humble home – not even the biggest in the street – in a suburb of Omaha.

Remmerswaal says he has read every chairman’s letter Buffett has released since 1977, as well as countless biographies on the billionaire.

There is much to be gained from the information contained in those letters and books, he says, but people are put off reading them because they think they are complicated. “All I’ve done is translated [the letters and books] for 5-year-olds, for 12-year-olds and for parents and teachers,” he says. “I’m just a foreign language translator, that’s what I’m doing here.”

Next month Remmerswaal heads back to Nebraska to join the hordes at the Berkshire-Hathaway annual shareholders meeting. He will again attempt to make contact with Buffett.

The clock ticks mercilessly for Remmerswaal – he wants the book to be launched on August 30 to coincide with Buffett’s 80th birthday. He has four-and-a-half months to get Buffett, and then Oprah, on board.

Hattie says there is much Kiwi kids can learn from the ideas in the Buffett books. “The message isn’t so much about Warren Buffett, it’s about key behaviours and key attitudes and Lucas is using [the books] as a medium,” he says.

By Christopher Adams

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Everything Warren Buffett: THE NEW ZEALAND HERALD: Generous …

I heard that the housing market being low in sales and with the forclousure market crashing, it is affecting investors so much that they are moving money out of equities (stocks) and investing more in safer investments. Thats why the stock market has been down so much in the past week.

How does this happen? I was reading about it, but I didn’t really understand. Are investors pulling out their stocks from big lenders? how exactly does it affect the stock market? I need help understanding it in normal terms that make sense.

Please advise, thank you!!

How does the housing market affect the stock market so much?

Jim Rogers :”I expect the Yen to go higher I am not selling Yen” both US Dollar and Yen are both involved in the carry trade and so I am holding my yen explains Jim Rogers , I have not bought any yen recently but I have been buying dollars and Euros ..amongst the commodities Jim Rogers recommends silver Natural gas agricultural commodities may be there are opportunities amongst the things (commodities ) that are cheap Jim Rogers explains good places to look for opportunities are cotton and sugar …amongst the Chinese stocks Jim Rogers recommends the airlines companies from which he expect to make a lot of money …Jim Rogers explains that there is a real estate bubble in the big Chinese cities but that the government is trying to cool things down…

Jim Rogers is buying Dollars and Euros and expects the Yen to go …