Everything has bad sides, along with good sides. The economy recession is no exception. While people lose their jobs and many companies went bankrupt, have you been considering about start your business? Here we give the top 11 good reasons to start a business right now.
1. Everything is cheaper. Let's face it: There is great value right now in this and in world markets. This is the right time for fantastic deals in virtually every category, from land and equipment to commercial office space, personnel and labor.
As asset prices have been knocked down, there is no better time to get into the real estate or financial markets, or even heavy equipment and construction. Some people have waited years to find value in these markets -- and now that time has come.
2. You can hire more and better-qualified people. In an era when even Microsoft (MSFT Quote - Cramer on MSFT - Stock Picks) is laying off, you can find great resources at affordable rates. Thinking about getting your high-tech start-up off the ground? There are plenty of engineers waiting to be hired. Thinking about forming a professional services firm? There are many accountants and attorneys looking for their next opportunity.
3. People are looking to change suppliers. From a cost perspective, everything is on the table for most companies. Even if your prices are higher, if you can come in with greater value, you have a good chance at winning new business. You also have the advantage of being the new kid on the block when it comes to pitching your products and services.
Many companies are desperate to find new partnerships with new companies that have a different, better or more innovative way of delivering those products and services.
4. Ownership equals tax incentives. Business ownership offers a variety of tax benefits that aren't available to employees. While taxes should never be the sole reason to go into business for yourself, it should be one reason to add to you "benefits of business ownership" list.
5. Family and friends don't want to (or can't) invest more money into the stock or real estate markets. That means they may be willing to finance a portion of your new venture, or the expansion of an enterprise that has proven itself over time. The main benefit is that they know you and have a relationship with you -- and if you have a solid business plan that delivers real numbers, your chances of raising the capital you need increase exponentially.
6. Suppliers are giving better credit. Because the credit markets have virtually shut down, the B2B credit flows are keeping money circulating out of sheer necessity. That means a bullish outlook for companies looking for good terms on stock and/or inventories. The main advantage is that all parties have more incentive than ever for finding true win-win situations that allow for cash and stock flow. When everyone is looking to survive, great deals can be had.
7. You can get good PR by showing you are going against the trend. The media loves aberrations, and if you are optimistic by expanding or getting into business now, you would be in that category. That means you can generate some great PR by demonstrating your "alternative" view of the market.
8. You can buy everything you need at auction. In addition to everything being less expensive, you can find great deals at auctions, especially in terms of any large equipment and office furnishings. Auctions are also a great place to find hardly used or "gently" used restaurant and bar supplies at great prices. These days, you may even be able to get deals on fleets of vehicles and trucks for a delivery service or hauling or construction company.
9. You can find great "low money" or "no money" down deals. This is simply being aware of good opportunities others have buggered up, and finding deals where you could get an entire business simply by taking over a lease (along with all the equipment). Many business owners want out at any cost, meaning you can negotiate great win-win deals that allow the current owners an escape while giving you an opportunity to turn around what could be, if run right, a very viable business.
10. You've lost your job, and you have to do something. Sometimes, the best business decision is the one you are forced into, and the incentive (as well as need) for income is often enough to push those previously "on the fence" to strike out on their own. There's nothing wrong with being in this position; it simply means there is greater urgency to do something that will start to generate income as quickly as possible.
11.If you start a business in a foreign country like China, you can get more Preferential policies and financial supports from local government. Remember to do some research before you take action.
There you have it: the top 11 reasons to start your business in a recession. After all, the odds are on your side that the expansion will be many times more robust than the present slowdown.
There's no better time to start than the present, especially if people around you are more comfortable with their own list of reasons why they shouldn't start pursuing their own business dreams right now. It only means you'll be facing a lot less competition.
Showing posts with label invest. Show all posts
Showing posts with label invest. Show all posts
2009-03-12
Stocks Basics(5): the ways to Buying Stocks
You've now learned what a stock is and a little bit about the principles behind the stock market, but how do you actually go about buying stocks? Thankfully, you don't have to go down into the trading pit yelling and screaming your order. There are two main ways to purchase stock:
1. Using a Brokerage
The most common method to buy stocks is to use a brokerage. Brokerages come in two different flavors. Full-service brokerages offer you (supposedly) expert advice and can manage your account; they also charge a lot. Discount brokerages offer little in the way of personal attention but are much cheaper.
At one time, only the wealthy could afford a broker since only the expensive, full-service brokers were available. With the internet came the explosion of online discount brokers. Thanks to them nearly anybody can now afford to invest in the market.
2. DRIPs & DIPs
Dividend reinvestment plans (DRIPs) and direct investment plans (DIPs) are plans by which individual companies, for a minimal cost, allow shareholders to purchase stock directly from the company. Drips are a great way to invest small amounts of money at regular intervals.
1. Using a Brokerage
The most common method to buy stocks is to use a brokerage. Brokerages come in two different flavors. Full-service brokerages offer you (supposedly) expert advice and can manage your account; they also charge a lot. Discount brokerages offer little in the way of personal attention but are much cheaper.
At one time, only the wealthy could afford a broker since only the expensive, full-service brokers were available. With the internet came the explosion of online discount brokers. Thanks to them nearly anybody can now afford to invest in the market.
2. DRIPs & DIPs
Dividend reinvestment plans (DRIPs) and direct investment plans (DIPs) are plans by which individual companies, for a minimal cost, allow shareholders to purchase stock directly from the company. Drips are a great way to invest small amounts of money at regular intervals.
2009-03-11
stock basics(4) What Causes Stock Prices To Change?
One of the most fundamental aspects of stock market trading is - "Stock prices change continuously". In fact, this is the driving force behind the stock markets. Without a change in stock prices there would be no trading at all!
Stock prices change every day as a result of market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.
Understanding supply and demand is easy. What is difficult to comprehend is what makes people like a particular stock and dislike another stock. This comes down to figuring out what news is positive for a company and what news is negative. There are many answers to this problem and just about any investor you ask has their own ideas and strategies.
That being said, the principal theory is that the price movement of a stock indicates what investors feel a company is worth. Don't equate a company's value with the stock price. The value of a company is its market capitalization, which is the stock price multiplied by the number of shares outstanding. For example, a company that trades at $100 per share and has 1 million shares outstanding has a lesser value than a company that trades at $50 that has 5 million shares outstanding ($100 x 1 million = $100 million while $50 x 5 million = $250 million). To further complicate things, the price of a stock doesn't only reflect a company's current value, it also reflects the growth that investors expect in the future.
The most important factor that affects the value of a company is its earnings. Earnings are the profit a company makes, and in the long run no company can survive without them. It makes sense when you think about it. If a company never makes money, it isn't going to stay in business. Public companies are required to report their earnings four times a year (once each quarter). Wall Street watches with rabid attention at these times, which are referred to as earnings seasons. The reason behind this is that analysts base their future value of a company on their earnings projection. If a company's results surprise (are better than expected), the price jumps up. If a company's results disappoint (are worse than expected), then the price will fall.
Of course, it's not just earnings that can change the sentiment towards a stock (which, in turn, changes its price). It would be a rather simple world if this were the case! During the dotcom bubble, for example, dozens of internet companies rose to have market capitalizations in the billions of dollars without ever making even the smallest profit. As we all know, these valuations did not hold, and most internet companies saw their values shrink to a fraction of their highs. Still, the fact that prices did move that much demonstrates that there are factors other than current earnings that influence stocks. Investors have developed literally hundreds of these variables, ratios and indicators. Some you may have already heard of, such as the price/earnings ratio, while others are extremely complicated and obscure with names like Chaikin oscillator or moving average convergence divergence.
So, why do stock prices change? The best answer is that nobody really knows for sure. Some believe that it isn't possible to predict how stock prices will change, while others think that by drawing charts and looking at past price movements, you can determine when to buy and sell. The only thing we do know is that stocks are volatile and can change in price extremely rapidly.
The important things to grasp about this subject are the following:
1. At the most fundamental level, supply and demand in the market determines stock price.
2. Price times the number of shares outstanding (market capitalization) is the value of a company. Comparing just the share price of two companies is meaningless.
3. Theoretically, earnings are what affect investors' valuation of a company, but there are other indicators that investors use to predict stock price. Remember, it is investors' sentiments, attitudes and expectations that ultimately affect stock prices.
4. There are many theories that try to explain the way stock prices move the way they do. Unfortunately, there is no one theory that can explain everything.
Stock prices change every day as a result of market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.
Understanding supply and demand is easy. What is difficult to comprehend is what makes people like a particular stock and dislike another stock. This comes down to figuring out what news is positive for a company and what news is negative. There are many answers to this problem and just about any investor you ask has their own ideas and strategies.
That being said, the principal theory is that the price movement of a stock indicates what investors feel a company is worth. Don't equate a company's value with the stock price. The value of a company is its market capitalization, which is the stock price multiplied by the number of shares outstanding. For example, a company that trades at $100 per share and has 1 million shares outstanding has a lesser value than a company that trades at $50 that has 5 million shares outstanding ($100 x 1 million = $100 million while $50 x 5 million = $250 million). To further complicate things, the price of a stock doesn't only reflect a company's current value, it also reflects the growth that investors expect in the future.
The most important factor that affects the value of a company is its earnings. Earnings are the profit a company makes, and in the long run no company can survive without them. It makes sense when you think about it. If a company never makes money, it isn't going to stay in business. Public companies are required to report their earnings four times a year (once each quarter). Wall Street watches with rabid attention at these times, which are referred to as earnings seasons. The reason behind this is that analysts base their future value of a company on their earnings projection. If a company's results surprise (are better than expected), the price jumps up. If a company's results disappoint (are worse than expected), then the price will fall.
Of course, it's not just earnings that can change the sentiment towards a stock (which, in turn, changes its price). It would be a rather simple world if this were the case! During the dotcom bubble, for example, dozens of internet companies rose to have market capitalizations in the billions of dollars without ever making even the smallest profit. As we all know, these valuations did not hold, and most internet companies saw their values shrink to a fraction of their highs. Still, the fact that prices did move that much demonstrates that there are factors other than current earnings that influence stocks. Investors have developed literally hundreds of these variables, ratios and indicators. Some you may have already heard of, such as the price/earnings ratio, while others are extremely complicated and obscure with names like Chaikin oscillator or moving average convergence divergence.
So, why do stock prices change? The best answer is that nobody really knows for sure. Some believe that it isn't possible to predict how stock prices will change, while others think that by drawing charts and looking at past price movements, you can determine when to buy and sell. The only thing we do know is that stocks are volatile and can change in price extremely rapidly.
The important things to grasp about this subject are the following:
1. At the most fundamental level, supply and demand in the market determines stock price.
2. Price times the number of shares outstanding (market capitalization) is the value of a company. Comparing just the share price of two companies is meaningless.
3. Theoretically, earnings are what affect investors' valuation of a company, but there are other indicators that investors use to predict stock price. Remember, it is investors' sentiments, attitudes and expectations that ultimately affect stock prices.
4. There are many theories that try to explain the way stock prices move the way they do. Unfortunately, there is no one theory that can explain everything.
2009-03-01
What are the top investing mistakes to avoid?
Investing is not an easy job. Even advanced investors sometimes make mistakes. But if we set clear goals and do enough homework carefully, we'll avoid the common mistakes and have a better chance of success.
The following is the top investing mistakes:
1. Not setting clear goals.
What are you saving for and how much do you need? Are you saving for retirement? A house? A car? Will you need to use your money in five, ten or 25 years? You need to know these things before you invest. Then you can choose investments that best fit your situation. For instance, if you will need your money soon, you may want to choose safer investments. Why? You won’t have time to make up any losses.
2. Putting all your money in one type of investment.
A mix of investments often works better. If one loses, another may gain. Remember, some businesses have cycles. Some may do well in the summer, some in winter. Some will react to world events, some may not. If you put all your money in a single investment (no matter how good it seems) and something goes wrong, you could lose all your money.
Some people avoid this mistake by investing in mutual funds or exchange-traded funds (ETFs). With these products, your money goes into a mix of investments. And over time, it’s your investment mix that most affects your results. That’s why many advisers tell investors to avoid putting more than 5-10% of their money in any one investment.
3. Investing in things you don't understand.
If you don't understand how an investment provides a return to you, or how a business is organized, or how it makes money, you need to either learn more about it or consider avoiding it. Also make sure you understand what can make the price of an investment rise and fall. This will help you decide whether an investment is a good choice for you.
4. Taking chances you can't live with.
Don't invest in something that makes you lose sleep at night from worry. Most people are better with investments that they don't need to watch every day. If you're going to take chances, make sure you only invest money you can afford to lose.
5. Forgetting about your investing costs.
There are always costs when you invest. In some cases, you pay fees. For instance, you pay sales fees when you buy and sell stocks. Mutual funds charge yearly fees to cover the cost of managing your money. These fees can vary from fund to fund. So before you buy, make sure you understand and compare those costs. It will help you make better investment choices.
Also, don't forget there can be a cost to playing it too safe when you invest. If you keep all your savings in a bank account, for instance, you won't lose money. But you also give up the chance to grow your money faster. That can cost you money in a different way.
6. Following hot tips or rumours.
What looks like great information may just be noise. Make sure you know and trust the source. If you're looking for advice, get it from an expert. That's doing your homework.
7. Other common investing mistakes include
· getting too comfortable with a good investment
· hanging on too long to a bad investment
· trying to rush results
· trying to time the market
· chasing success.
The following is the top investing mistakes:
1. Not setting clear goals.
What are you saving for and how much do you need? Are you saving for retirement? A house? A car? Will you need to use your money in five, ten or 25 years? You need to know these things before you invest. Then you can choose investments that best fit your situation. For instance, if you will need your money soon, you may want to choose safer investments. Why? You won’t have time to make up any losses.
2. Putting all your money in one type of investment.
A mix of investments often works better. If one loses, another may gain. Remember, some businesses have cycles. Some may do well in the summer, some in winter. Some will react to world events, some may not. If you put all your money in a single investment (no matter how good it seems) and something goes wrong, you could lose all your money.
Some people avoid this mistake by investing in mutual funds or exchange-traded funds (ETFs). With these products, your money goes into a mix of investments. And over time, it’s your investment mix that most affects your results. That’s why many advisers tell investors to avoid putting more than 5-10% of their money in any one investment.
3. Investing in things you don't understand.
If you don't understand how an investment provides a return to you, or how a business is organized, or how it makes money, you need to either learn more about it or consider avoiding it. Also make sure you understand what can make the price of an investment rise and fall. This will help you decide whether an investment is a good choice for you.
4. Taking chances you can't live with.
Don't invest in something that makes you lose sleep at night from worry. Most people are better with investments that they don't need to watch every day. If you're going to take chances, make sure you only invest money you can afford to lose.
5. Forgetting about your investing costs.
There are always costs when you invest. In some cases, you pay fees. For instance, you pay sales fees when you buy and sell stocks. Mutual funds charge yearly fees to cover the cost of managing your money. These fees can vary from fund to fund. So before you buy, make sure you understand and compare those costs. It will help you make better investment choices.
Also, don't forget there can be a cost to playing it too safe when you invest. If you keep all your savings in a bank account, for instance, you won't lose money. But you also give up the chance to grow your money faster. That can cost you money in a different way.
6. Following hot tips or rumours.
What looks like great information may just be noise. Make sure you know and trust the source. If you're looking for advice, get it from an expert. That's doing your homework.
7. Other common investing mistakes include
· getting too comfortable with a good investment
· hanging on too long to a bad investment
· trying to rush results
· trying to time the market
· chasing success.
2009-02-25
Set Realistic Investment Expectations
Someone once said, "If you don't know where you're going, how are you going to get there?" The first step as a potential investor should be to decide what you want to accomplish with your money, and when you want to accomplish it.
To establish investment objectives, one should understand investment basics. There are difference between investing and speculating. Once you realize that investing is not gambling and approach investing with discipline, your money can work for you.
Benjamin Graham, author of The Intelligent Investor, said: “The investor’s chief problem – and even his worst enemy – is likely to be himself.” A basic premise of investing is avoiding the tendency to make emotional decisions.
Step 1: Determine What's Most Important To You
The first step to investing is to determine which of the following results are most important to you:
•Safety
•Income
•Growth
The ideal investment would provide them all: it would be completely safe, it would provide you with a sufficient level of income to keep pace with inflation AND your principal would grow.
That “perfect investment” does not exist. Instead, the investment world looks like the triangle in the top right corner.
As you move toward one corner of the triangle you move away from the other two. If you want an investment that is safe, you have to be willing to accept less income and growth.
If you want an investment that produces consistent income, you have to understand that it will not grow as much. If you want an investment that grows, you have to be willing to accept less safety.
To avoid chasing returns, investors must realize they can't have it all. Different types of investments provide different results.
Step 2: Determine Your Time Horizon
•Short term: money you will potentially need within 1-2 years.
•Mid term: Money you will potentially need within 3-9 years.
•Long term: money you will not need for 10+ years.
For short term money, you should choose safe investments.
For mid term money, consider a balanced fund.
For long term money, choose growth investments, like index mutual funds.
Keep in mind, even if you will need income from your investments within a few years, your time horizon is your life expectancy, so a portion of your investments would still be allocated toward growth.
To invest with discipline, you must understand what investments provide which results, and combine them in the right proportions.
Like cooking, if you know what you are doing, when you put the ingredients together in the right proportion, you get an outcome that you are happy with. Once you have the recipe right, all you have to do is follow it.
To establish investment objectives, one should understand investment basics. There are difference between investing and speculating. Once you realize that investing is not gambling and approach investing with discipline, your money can work for you.
Benjamin Graham, author of The Intelligent Investor, said: “The investor’s chief problem – and even his worst enemy – is likely to be himself.” A basic premise of investing is avoiding the tendency to make emotional decisions.
Step 1: Determine What's Most Important To You
The first step to investing is to determine which of the following results are most important to you:
•Safety
•Income
•Growth
The ideal investment would provide them all: it would be completely safe, it would provide you with a sufficient level of income to keep pace with inflation AND your principal would grow.
That “perfect investment” does not exist. Instead, the investment world looks like the triangle in the top right corner.
As you move toward one corner of the triangle you move away from the other two. If you want an investment that is safe, you have to be willing to accept less income and growth.
If you want an investment that produces consistent income, you have to understand that it will not grow as much. If you want an investment that grows, you have to be willing to accept less safety.
To avoid chasing returns, investors must realize they can't have it all. Different types of investments provide different results.
Step 2: Determine Your Time Horizon
•Short term: money you will potentially need within 1-2 years.
•Mid term: Money you will potentially need within 3-9 years.
•Long term: money you will not need for 10+ years.
For short term money, you should choose safe investments.
For mid term money, consider a balanced fund.
For long term money, choose growth investments, like index mutual funds.
Keep in mind, even if you will need income from your investments within a few years, your time horizon is your life expectancy, so a portion of your investments would still be allocated toward growth.
To invest with discipline, you must understand what investments provide which results, and combine them in the right proportions.
Like cooking, if you know what you are doing, when you put the ingredients together in the right proportion, you get an outcome that you are happy with. Once you have the recipe right, all you have to do is follow it.
2009-02-23
Investing in sustainable companies to get competitive returns within a weak economic environment
Some investors mistakenly think that sustainable investing and competitive returns are mutually exclusive. But it’s not absolutely true.
For example, the Domini 400 Social Index, which measures the performance of sustainable companies, has outperformed the Standard & Poor's 500 stock index since its inception.
These companies have done well because they tend to approach their business with a long-term view, treat their customers, employees and shareholders with respect, and consider the environment as a vital stakeholder.
However, as with any successful investing approach, sustainable investing requires strict investment discipline to ensure success. For optimal investment results, we suggest looking for value and sustainability.
The definition of what constitutes a sustainable investment might vary, depending on the investor. Before investing, people review a blend of positive and negative factors, as well as qualitative and quantitative criteria.
To find value, we look for out-of-favor and under-followed companies whose shares are discounted heavily due to temporary factors. In today's market, forced selling has created many opportunities to buy sustainable companies at a significant discount.
Here comes the point, we exclude companies that make certain harmful products such as cigarettes, we measure each company's environmental performance and we avoid companies that operate in countries such as Myanmar and Sudan that have significant human rights violations.
We also look for companies offering products and services that promote better health, improve the economic well-being of impoverished populations and reduce their environmental impact.
We suggest investing in sustainable companies with strong balance sheets that can increase earnings within a weak economic environment.
Here are four examples:
• John B. Sanfilippo & Son Inc. (JBSS) of Elgin, Ill., owner of the Fisher Nuts brand and the largest U.S. private-label nut producer, is one of our favorite investments. From a sustainability perspective, the company represents a good holding due to the products it makes. Nuts are a high-quality source of vegetarian protein and researchers have found that people who eat nuts have lower risks of heart disease.
From a financial perspective, the company just moved its operations into a more efficient manufacturing facility and we think that gross margins could double, compared with fiscal year 2006 levels. The company is also trading at a price well below tangible book value and markedly below our estimate of liquidation value.
• Avon Products Inc. (AVP) of New York offers tremendous investment value to investors. While its business is declining domestically, Avon maintains an attractive growth profile internationally, particularly in emerging markets. Except for the most dire economic environments, women will continue to use cosmetic products. The stock has fallen considerably, though Avon has done well during past recessions. On the sustainability side, Avon maintains proactive workplace practices for women and minorities.
• Annaly Capital Management Inc. (NLY) of New York is a real estate investment trust that invests in agency mortgage-backed securities. In this recession, foreclosures are an important social issue because of the detrimental impact that foreclosures and falling home prices have on local communities.
An investment in agency mortgages through Annaly contributes to lower mortgage interest rates for homeowners, which will reduce foreclosure rates. From a value perspective, Annaly's earnings increase significantly when its cost of borrowing declines. Given the Federal Reserve Board's nearly zero interest rate policy, Annaly's borrowing costs are at rock-bottom level.
• Dell Inc. (DELL) of Round Rock, Texas, maintains the goal of becoming "the greenest technology company on the planet." Its recycling policy is innovative: Dell pays all shipping costs for any computers that are sent to it to be recycled. From a valuation viewpoint, Dell maintains a pristine balance sheet with $3.32 a share in cash, and its free cash flow yield exceeds 10%.
Its cash conversion cycle is negative, which means that customers pay Dell before the organization purchases the components it uses to manufacture computers.
For example, the Domini 400 Social Index, which measures the performance of sustainable companies, has outperformed the Standard & Poor's 500 stock index since its inception.
These companies have done well because they tend to approach their business with a long-term view, treat their customers, employees and shareholders with respect, and consider the environment as a vital stakeholder.
However, as with any successful investing approach, sustainable investing requires strict investment discipline to ensure success. For optimal investment results, we suggest looking for value and sustainability.
The definition of what constitutes a sustainable investment might vary, depending on the investor. Before investing, people review a blend of positive and negative factors, as well as qualitative and quantitative criteria.
To find value, we look for out-of-favor and under-followed companies whose shares are discounted heavily due to temporary factors. In today's market, forced selling has created many opportunities to buy sustainable companies at a significant discount.
Here comes the point, we exclude companies that make certain harmful products such as cigarettes, we measure each company's environmental performance and we avoid companies that operate in countries such as Myanmar and Sudan that have significant human rights violations.
We also look for companies offering products and services that promote better health, improve the economic well-being of impoverished populations and reduce their environmental impact.
We suggest investing in sustainable companies with strong balance sheets that can increase earnings within a weak economic environment.
Here are four examples:
• John B. Sanfilippo & Son Inc. (JBSS) of Elgin, Ill., owner of the Fisher Nuts brand and the largest U.S. private-label nut producer, is one of our favorite investments. From a sustainability perspective, the company represents a good holding due to the products it makes. Nuts are a high-quality source of vegetarian protein and researchers have found that people who eat nuts have lower risks of heart disease.
From a financial perspective, the company just moved its operations into a more efficient manufacturing facility and we think that gross margins could double, compared with fiscal year 2006 levels. The company is also trading at a price well below tangible book value and markedly below our estimate of liquidation value.
• Avon Products Inc. (AVP) of New York offers tremendous investment value to investors. While its business is declining domestically, Avon maintains an attractive growth profile internationally, particularly in emerging markets. Except for the most dire economic environments, women will continue to use cosmetic products. The stock has fallen considerably, though Avon has done well during past recessions. On the sustainability side, Avon maintains proactive workplace practices for women and minorities.
• Annaly Capital Management Inc. (NLY) of New York is a real estate investment trust that invests in agency mortgage-backed securities. In this recession, foreclosures are an important social issue because of the detrimental impact that foreclosures and falling home prices have on local communities.
An investment in agency mortgages through Annaly contributes to lower mortgage interest rates for homeowners, which will reduce foreclosure rates. From a value perspective, Annaly's earnings increase significantly when its cost of borrowing declines. Given the Federal Reserve Board's nearly zero interest rate policy, Annaly's borrowing costs are at rock-bottom level.
• Dell Inc. (DELL) of Round Rock, Texas, maintains the goal of becoming "the greenest technology company on the planet." Its recycling policy is innovative: Dell pays all shipping costs for any computers that are sent to it to be recycled. From a valuation viewpoint, Dell maintains a pristine balance sheet with $3.32 a share in cash, and its free cash flow yield exceeds 10%.
Its cash conversion cycle is negative, which means that customers pay Dell before the organization purchases the components it uses to manufacture computers.
2009-02-18
How to invest in a down market
These days business newspapers filled with market crash news in a daily basis. But the business world is full with tips even in a down market. Can you invest at this time? The ultimate answer is “Yes”. Read below to get an exact idea to the right place to park your money.
Have you known what happened to Mr. Warren Buffett, the greatest investor, at this time? Yes, everybody losing in the market but he added another $500 Cr’s to his wealth. How?
Any one of us can do the same. This is NOT the time to invest in stock market but in the same time, this is the correct time to invest in stock market. These all depends on how your mind works and how much you are tied with your money. If you are dealing with money like a hen which is sitting on the eggs, you are not the right person to read this. Everyone has fear about money lose. But the truth is, intelligent action through well study and long term focus, stock market will never give you loses.
Remember, stock markets are at the bottom line and valuations are very attractive with all the companies. There are 2 major options in front of you to invest your money at this time of down market.
1. First option is very simple and it is secure. Park your money to bank FD’s for desired time and sits freely. Enjoy the interest what you are getting. Your money is safe. But what will do if the bank crash? That is your question to answer yourself.
2. Second available option is, you still have options to invest in stock market. It is not a joke. You can still invest in stock market if you think like Warren Buffett. You are well aware that stock prices touched the bottom line and valuations are very attractive. Yes it is. Financial turmoil or the stock market crash doesn’t mean that all companies are in lose. Why don’t you select large cap companies that have well established business as well as increasing earnings at these times too?
Yes. Invest at this time on the blue chip stocks of carefully selected companies. Don’t go behind any mid or small cap companies at least at this time. Blue chips are your best friends at this time. They have well establish business and it is impossible to close down such business to give you lose. So select such companies and invest on that. This was the method what Buffet was practically doing.
Valuations are very attractive and price of the blue chip stocks are in bottom line because of the financial turmoil. You can see there will not be any affect to there business and that is the best point you have to keep in mind to invest on that stocks.
Don’t panic after investing to well established companies or blue chip companies. Let it be there. Every down has an up. It will take time but, certainly the market it will go up. The only point to remember is, this is not the time to trade or invest your money for short time. If you decided to invest in stock at this time, invest with blue chip stocks and for long term.
Besides, there are some tips on investing in a down stock market. When things look their worst, and you really want to sell and get out, that is probably the time to buy! But always keep in mind that know your limitations.
It is a bad idea at this time, if you planning to invest bulk amount to mutual funds. Better, wait and see for some time before mutual fund investing. You can select good mutual funds to invest money in a SIP basis. If economic growth is intact, then there is nothing to bother.
Be a prudent investor. Keep your new investments only to the stocks of blue chip companies. Invest in good mutual funds ONLY in sip basis or park your money to the bank Fixed deposits. Never panic, be patient, the market will most likely come back over the long run.
Have you known what happened to Mr. Warren Buffett, the greatest investor, at this time? Yes, everybody losing in the market but he added another $500 Cr’s to his wealth. How?
Any one of us can do the same. This is NOT the time to invest in stock market but in the same time, this is the correct time to invest in stock market. These all depends on how your mind works and how much you are tied with your money. If you are dealing with money like a hen which is sitting on the eggs, you are not the right person to read this. Everyone has fear about money lose. But the truth is, intelligent action through well study and long term focus, stock market will never give you loses.
Remember, stock markets are at the bottom line and valuations are very attractive with all the companies. There are 2 major options in front of you to invest your money at this time of down market.
1. First option is very simple and it is secure. Park your money to bank FD’s for desired time and sits freely. Enjoy the interest what you are getting. Your money is safe. But what will do if the bank crash? That is your question to answer yourself.
2. Second available option is, you still have options to invest in stock market. It is not a joke. You can still invest in stock market if you think like Warren Buffett. You are well aware that stock prices touched the bottom line and valuations are very attractive. Yes it is. Financial turmoil or the stock market crash doesn’t mean that all companies are in lose. Why don’t you select large cap companies that have well established business as well as increasing earnings at these times too?
Yes. Invest at this time on the blue chip stocks of carefully selected companies. Don’t go behind any mid or small cap companies at least at this time. Blue chips are your best friends at this time. They have well establish business and it is impossible to close down such business to give you lose. So select such companies and invest on that. This was the method what Buffet was practically doing.
Valuations are very attractive and price of the blue chip stocks are in bottom line because of the financial turmoil. You can see there will not be any affect to there business and that is the best point you have to keep in mind to invest on that stocks.
Don’t panic after investing to well established companies or blue chip companies. Let it be there. Every down has an up. It will take time but, certainly the market it will go up. The only point to remember is, this is not the time to trade or invest your money for short time. If you decided to invest in stock at this time, invest with blue chip stocks and for long term.
Besides, there are some tips on investing in a down stock market. When things look their worst, and you really want to sell and get out, that is probably the time to buy! But always keep in mind that know your limitations.
It is a bad idea at this time, if you planning to invest bulk amount to mutual funds. Better, wait and see for some time before mutual fund investing. You can select good mutual funds to invest money in a SIP basis. If economic growth is intact, then there is nothing to bother.
Be a prudent investor. Keep your new investments only to the stocks of blue chip companies. Invest in good mutual funds ONLY in sip basis or park your money to the bank Fixed deposits. Never panic, be patient, the market will most likely come back over the long run.
2009-02-16
How to be an informed investor
While investing, information is just like money. More precise information and knowledge you have, more successful you could be. How to be an informed investor, getting exact information you just need? There are some factors and homework an investor must do himself. This article pointing out some must required actions. Read the entire article below:
Read, read, read
Consider to read maximum. Reading great books, articles and newsletters will give you enough knowledge to select the right path at tight time. Not only that but, it will also give you enough knowledge on various aspects on investment instrument selections and valuations. A successful investor should spend enough time to find and read most useful books and articles to gain all required knowledge.
Acquire knowledge on available products to invest
Investment world is not small with one or two products. It is very vast and the success of an investor laying on the selection and combination of these products at the right time. To have a successful financial plan, an investor should aware about the advantages and disadvantages of all the investment products around him. He should be able to identify the right one and compare the same with all other similar products available in the market to identify the winner or the loser. A successful investor not only should have good knowledge about the products he deals with presently but, he should be able to understand and explain the features of various products available around him.
Watch business channels
Television especially business channels are necessary part to investors day to day life. This is a very good source to get updated information on latest trends and changes. I am not saying to believe and act as per what they are saying but, through business channels, an investor will get enough opportunity to identify best investment products to do own research to understand the investment suitability. Make this as a regular practice.
Usage of internet
Internet is the excellent source to get instant access to well written articles, valuable information, real time data and other similar information. Utilize the maximum and get enough knowledge about all the areas of investment practices.
Grouping and social networking sites
Social networking sites are a best source to share and take ideas. It is very helpful to identify whether your plan has any loopholes or chance of failure. You can also receive very good reviews on your ideas as well as winning ideas from experts who are also in the part of the group where you are in.
Don't believe everything blindly
A careful approach to the research reports and the words from self acting investment gurus required your own research and study to believe or avoid. Always have practical approach. Don’t believe anything without your own research. Research reports might have hidden traps to investors if blindly follow them. Through study and digging to the truth will help you to identify the fact and act as per that.
Chat with experts
Chat rooms are an excellent source to get real time information from experience people. Care should be taken about the person in the other end and don’t blindly believe him without your own study on what they are suggesting or recommending.
Participate to events
Participating events related to the subject is a good idea to get helpful information and knowledge. In my opinion, an investor should take the advantage from all the events happening around him. It can be an investor meets or an awareness section or a company general meeting. Whatever it is, participating to such events help an investor to meet people with similar thoughts as well as chance to contact experts. It is also helpful to clear any doubts and get prompt answer to your questions. It can also be used for building good friendships with other investors.
Passion on investing
This is the most important factor. Be passionate. Without passion, you can’t achieve anything. Learn from the real life of legend investors. They have enough passion to the profession and that lead them to great success. So be passionate or leave such profession immediately.
However, an informed investor doesn’t mean a successful investor. In addition, you have to learn to analyze and research the information you get, and make the right decision.
Read, read, read
Consider to read maximum. Reading great books, articles and newsletters will give you enough knowledge to select the right path at tight time. Not only that but, it will also give you enough knowledge on various aspects on investment instrument selections and valuations. A successful investor should spend enough time to find and read most useful books and articles to gain all required knowledge.
Acquire knowledge on available products to invest
Investment world is not small with one or two products. It is very vast and the success of an investor laying on the selection and combination of these products at the right time. To have a successful financial plan, an investor should aware about the advantages and disadvantages of all the investment products around him. He should be able to identify the right one and compare the same with all other similar products available in the market to identify the winner or the loser. A successful investor not only should have good knowledge about the products he deals with presently but, he should be able to understand and explain the features of various products available around him.
Watch business channels
Television especially business channels are necessary part to investors day to day life. This is a very good source to get updated information on latest trends and changes. I am not saying to believe and act as per what they are saying but, through business channels, an investor will get enough opportunity to identify best investment products to do own research to understand the investment suitability. Make this as a regular practice.
Usage of internet
Internet is the excellent source to get instant access to well written articles, valuable information, real time data and other similar information. Utilize the maximum and get enough knowledge about all the areas of investment practices.
Grouping and social networking sites
Social networking sites are a best source to share and take ideas. It is very helpful to identify whether your plan has any loopholes or chance of failure. You can also receive very good reviews on your ideas as well as winning ideas from experts who are also in the part of the group where you are in.
Don't believe everything blindly
A careful approach to the research reports and the words from self acting investment gurus required your own research and study to believe or avoid. Always have practical approach. Don’t believe anything without your own research. Research reports might have hidden traps to investors if blindly follow them. Through study and digging to the truth will help you to identify the fact and act as per that.
Chat with experts
Chat rooms are an excellent source to get real time information from experience people. Care should be taken about the person in the other end and don’t blindly believe him without your own study on what they are suggesting or recommending.
Participate to events
Participating events related to the subject is a good idea to get helpful information and knowledge. In my opinion, an investor should take the advantage from all the events happening around him. It can be an investor meets or an awareness section or a company general meeting. Whatever it is, participating to such events help an investor to meet people with similar thoughts as well as chance to contact experts. It is also helpful to clear any doubts and get prompt answer to your questions. It can also be used for building good friendships with other investors.
Passion on investing
This is the most important factor. Be passionate. Without passion, you can’t achieve anything. Learn from the real life of legend investors. They have enough passion to the profession and that lead them to great success. So be passionate or leave such profession immediately.
However, an informed investor doesn’t mean a successful investor. In addition, you have to learn to analyze and research the information you get, and make the right decision.
2009-02-14
Five basic steps in investing
Investment is important in life. Before investing, there’s a lot to figure out and we have to prepare well. If you have a plan to follow, you’ll know better what to do with your money and you’ll worry less. Generally, there are five steps to plan your investments
1. Set your goals
Figure out:
What are my top financial goals?
When do I hope to reach those goals?
How much money do I want to save?
2. Find out what kind of investor you are
Figure out:
How do I want to approach investing?
How important is it to me to keep my money safe?
How comfortable am I with the idea that I may sometimes lose money if I want to grow my savings faster?
How important it is to me to make a good return on my investments?
3. Pick a mix of investment types
Figure out:
What types of investments do I understand and want to buy? Some types of investments may grow faster than others. A good mix of different investments (your asset mix) will help you get enough growth, while keeping losses in balance.
Am I comfortable choosing my own asset mix? If not, get some expert advice.
4. Choose specific investments
Once you know your asset mix, you can choose specific investments of each type.
Do a lot of research before you decide. Look at how an investment has done in the past and how well it may do in the future.
Again, many people get expert advice.
5. Keep track of your investments
Keep good records of your investments so you will know how well each one does.
If you have an adviser, check that he or she is following your investment instructions.
1. Set your goals
Figure out:
What are my top financial goals?
When do I hope to reach those goals?
How much money do I want to save?
2. Find out what kind of investor you are
Figure out:
How do I want to approach investing?
How important is it to me to keep my money safe?
How comfortable am I with the idea that I may sometimes lose money if I want to grow my savings faster?
How important it is to me to make a good return on my investments?
3. Pick a mix of investment types
Figure out:
What types of investments do I understand and want to buy? Some types of investments may grow faster than others. A good mix of different investments (your asset mix) will help you get enough growth, while keeping losses in balance.
Am I comfortable choosing my own asset mix? If not, get some expert advice.
4. Choose specific investments
Once you know your asset mix, you can choose specific investments of each type.
Do a lot of research before you decide. Look at how an investment has done in the past and how well it may do in the future.
Again, many people get expert advice.
5. Keep track of your investments
Keep good records of your investments so you will know how well each one does.
If you have an adviser, check that he or she is following your investment instructions.
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