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Posts Tagged ‘money’

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 …

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Warren Buffett gets opportunities the rest of us don’t. He’s the name-brand investor companies go to when they need cash or a smidge of reputation in a hurry.

I have previously chronicled the crazy-sweet terms Goldman Sachs and General Electric gave Buffett. how crazy-sweet? they begged Buffett — technically his company, Berkshire Hathaway — to lend them money at a guaranteed 10% plus equity upside.

But before you get too jealous, know that this wasn’t always the case.

How Buffett made his opportunities
Let me take you back to a time when Buffett wasn’t worth 11 figures. Back to a time when he had only five figures to work with.

In his 20s, Buffett’s eventual avalanche was just a snowball. All his name could get him was a dinner reservation … if he called ahead.

So he had to work to find deals to invest in — deals that would form the basis of his fortune. he sought out the master investors of his time, including his hero Benjamin Graham, and learned everything they would teach him.

But more than anything, he did the legwork that others weren’t willing to do. in this time before the Internet, he’d physically go to Moody’s and Standard & Poor’s to read old reports, to the SEC to read filings, and to company headquarters to talk with management.

His persistence was rewarded handsomely, particularly in tiny, underfollowed companies. in Buffett’s own words: “I would pore through volumes of businesses and I’d find one or two … that were just ridiculously cheap.”

How cheap? in one six-year period, he grew his wealth by more than 60% a year. By age 26, he had amassed so much wealth that he considered retirement.

How Buffett lost his opportunities
Of course, he didn’t retire. in the decades since, he’s continued putting up incredible returns, and he’s laid claim to the unofficial title of greatest investor ever.

But with all this wealth comes a problem.

That problem is exemplified by Buffett’s recent purchase of the Burlington Northern Santa Fe railroad — which he admits wasn’t a particular bargain.

The man who has absolutely throttled the market for more than five decades now says, “Reasonable return is good enough. … I mean, 50 years ago, I was looking for spectacular returns, but I can’t — I can’t get them.”

Why the surrender? one word: size.

Berkshire Hathaway is roughly the size of a Wal-Mart (NYSE: WMT), an Apple (Nasdaq: AAPL), or an IBM (NYSE: IBM). Buffett’s empire has grown so large that the small multibaggers he used to stalk no longer make a dent in his portfolio’s returns.

For Buffett, analyzing and buying a small-cap stock has roughly the same cost benefit as us walking a mile to pick up a quarter. instead, he’s stuck stalking elephants like Burlington Northern, which was roughly the size of a Lowe’s (NYSE: LOW), a Bristol-Myers Squibb (NYSE: BMY), or an eBay (Nasdaq: EBAY).

Could he still do it today?
When Buffett could stalk mosquitoes instead of elephants, his returns were consistently monstrous. That was a long, long time ago, though. could he still do it today?

He thinks so. he says, “It’s a huge structural advantage not to have a lot of money. I think I could make you 50% a year on $1 million. no, I know I could. I guarantee that.”

Wow. Now, before we get carried away, that’s the greatest investor in the world taking on the market with no restrictions.

The takeaway for us mere mortals is that there’s more opportunity for outsized returns in small-cap stocks than there is in larger-cap stocks.

Just like Buffett
It’s nice to know we have one advantage over Buffett. for an idea of how to take advantage of said advantage, I turned to our small-cap experts at Motley Fool Hidden Gems.

They recommended doing the same type of work Buffett did back in his heyday — studying the master investors, vetting company management, and digging into financial statements to find strong balance sheets and large margins of safety.

Using this process, they’ve unearthed Neutral Tandem (Nasdaq: TNDM), a fledgling telecommunications network play that is disrupting the switching services provided by the Baby Bells. Backed by a cash-rich balance sheet, the company looks to growth opportunities in the increase of voice and data needs as well as its own geographic expansion.

The Hidden Gems team has put its money where its mouth is on Neutral Tandem, buying shares of it in the real-money portfolio it manages for the world to see. If you’d like to see what else it’s buying now, you can take a 30-day trial absolutely free. just click here to get started.

This article was originally published Dec. 24, 2009. it has been updated.

Anand Chokkavelu owns shares of Berkshire Hathaway. Berkshire Hathaway, Lowe’s, and Wal-Mart are Motley Fool inside Value recommendations. Apple, Berkshire Hathaway, and eBay are Stock Advisor picks. Motley Fool Options has recommended a bull call spread position on eBay. the Fool owns shares of Berkshire Hathaway and Neutral Tandem. The Fool has a disclosure policy.

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