myinvestingnotes.blogspot.my (Bullbear Buffett Stock Investing Notes)

Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.

Showing posts with label Types of investments. Show all posts

Tuesday, 30 July 2013

How to Invest Your MONEY: 30 Key Personal Investment Opportunities

Annuity
Bond, Corporate (Interest Bearing)
Closed-End Fund
Collectibles
Common Stock
Convertible Security
Exchange-Traded Funds
Foreign Stocks and Bonds
Futures Contract on a Commodity
Futures Contract on an Interest Rate
Futures Contract on a Stock Index
Government Agency Security
Life Insurance (Cash Value)
Money Market Fund
Mortgage-Backed (Pass-Through) Security
Municipal Security
Mutual Funds (Open End)
Option Contract (Put or Call)
Option Contract on a Futures Contract (Future Option)
Option Contract on an Interest Rate (Debt Option)
Option Contract on a Stock Index
Option Contract or Futures Contract on a Currency
Precious Metals
Preferred Stock (Nonconvertible)
Real Estate Investment Trust (REIT and FREIT)
Real Estate, Physical
Savings Alternatives
Treasury Securities (Bills, Bonds and Notes)
Unit Investment Trust
Zero-Coupon Security

Saturday, 25 April 2009

Interesting questions in a survey

Took the survey in Investopedia today. Here are some of the interesting questions asked.

What investments currently interest you? (Check as many as apply)

Stocks

Mutual Funds

ETF

IRA/Retirement

FOREX

Options

Cash and Cash Equivalents

Futures/Commodities

Real Estate

Precious Metals

Bonds/Debt

CD/Notes/Bills

Money Market/Bank Account

None of the Above

What investments do you currently own?

Stocks

Mutual Funds

ETF

IRA/Retirement

FOREX

Options

Cash and Cash Equivalents

Futures/Commodities

Real Estate

Precious Metals

Bonds/Debt

CD/Notes/Bills

Money Market/Bank Account

None of the Above

There are many features on Investopedia. Which of the following features do you read or use? (Check as many as apply)

Latest Articles

Recent Stock Analysis

Tutorials

Exam Prep

Stock Simulator

Get Current Rates (Savings, Home Equity, Mortgate, etc.)

Other (Please Specify)

Which of the following types of method do you use to trade? (Check only one)

I trade online

I use a traditional broker

Both

On average, how often do you trade?

Several times per day

Daily

2-6 times a week

Once a week

2-3 times a month

Once a month

Less than once a month

I currently do not trade

I do not trade

On average, how many trades per month do you make?

None

1-5

6-10

11-50

51-99

100+

Don't Know

How often do you check your investments?

Everyday

2-6 times a week

Once a week

2-3 times a month

Once a month

Less often than once a month

Never check my investments

Which of the following best describes your portfolio size?

Less than $49,999

$50,000-$74,999

$75,000-$99,999

$100,000-$199,999

$200,000-$299,000

$300,000-$399,000

$400,000-499,000

$500,000-$999,999

$1,000,000+

Don't Know

Which of the following websites do you visit on a regular basis? (Check as many as apply)

Investopedia.com

WSJ.com

BW.com

NYtimes.com

FT.com

Forbes.com

Bloomberg.com

CNNmoney.com

Yahoofinance.com

Economist.com

USnews.com

Other

Which of the following best describes your age?

Under 18

18-24

25-34

35-44

45-54

55-64

65+

In the past 12 months, have you attended any school, classes, or workshops on
investing or finance related?

Yes

No

Not sure

Which of the following best describes your status?

Working full-time

Working part-time

Homemaker/Stay home parent

Student/working part or full-time

Student Only

Retired

Not Employed

Which of the following best describes the industry that you work in?

Investment Banking

Commercial Banking

Accounting

Real Estate

Mortgage Industry

Media

Retail

Telecommunications

Healthcare

Insurance

Manufacturing

Education

Other

Which of the following best describes your title?

C-Level (President, CEO, COO, CFO, CMO, CIO, etc.)

Owner/Partner

SVP/EVP

Director/GM

Manager

Consultant

Accountant

Financial Planner

Financial Adviser

Sales

Other

Which of the following best describes your total household income in 2008 before taxes?

Under $24,999

$25,000-$49,999

$50,000-$74,999

$75,000-$99,999

$100,000-$149,999

$150,000-$199,999

$200,000-$249,999

$250,000-$299,999

$300,000+

Don't Know

Monday, 1 December 2008

Investment : Types & Overview

Investment : Types & Overview

Though the term investment simply means using the present income for generating wealth in the future or net addition to the stock of capital, still it has its infinite meanings through its versatile application in the real practices.

The term investment has gained its strength in the recent years through changing economic climate over the world. The world business climate is changing very fast and it is the term investment, which is in the perfect direction to provide smell to more than 6 billions over the world.

From the latest United Nations Conference on Trade and Development( UNCTAD report, it is found that the developing nations over the world have actively participated in the field of investment. As to UNCTAD statistics, investment to the developing countries over the world has nearly doubled in two years.

Increasing liberalization among the countries over the world can justify the best result from investment. Present economic success brought by the countries such as India and China have gained a lot from the investment boom.

Present economic growth is largely dependent upon investment factor. This section covers meaning of investment, trend in investment and investment companies over the world.

Investment refers to an asset which is purchased with the expectation that it will generate income in the future or its’ value will appreciate in future so that it will be sold at a higher price. In other sense, we can say that Investment is the purchase of the goods which are not consumed at the present but is used to create wealth in the future. Investment cannot be done without Savings. Savings provides the funds necessary for investment. Investment is influenced by Rate of Interest. Falling interest rates result in increasing rate of Investment. Investment plays a vital role in economic growth of the country as Investment increases the production capacity of the economy.

The meaning of the term Investment is different in different genres. In Economics, Investment is the production per unit time of goods which are not consumed at present and are used for future production. According to economic theory Investment depends on income and rate of interest. An increase in income positively affects the Investment but an increasing rate of interest has a negative effect on it. The interest rate in this case is nothing but the opportunity cost of investing the funds rather than using them at the present. In Finance, Investment means purchasing of securities or any other assets in money market or capital market or purchase of any liquid assets like gold or residential real estate property or commercial real estate property.

Find below various Investment types , investment companies, and real estate investment:

Investment Companies & Types
Edward Jones Investment
Fidelity Investment
Franklin Templeton Investments
Vanguard Investment
Fremont Investment
Land Investment
Property Investment
Bank of America Investment
Financial Advisors
Financial Planning
Private Equity
Retirement Planning

Investment Overview
Finance Investment
Investment Brokerage
Investment Guide
Online Investment
Investment Securities
Return on Investment
Business Investment Opportunity
Investment Strategy
Types of Financial Advisors
Unit Trust
Venture Capital
Wealth Management

Real Estate Investment
Real Estate Investment
Real Estate Investment Property
Real Estate Investment Trust
Investment Firm
Fremont Investment and Loan
Investment Property Loan
Investment Banks

http://www.economywatch.com/investment/

Tuesday, 28 October 2008

Major types of Investments

Major types of Investments

Main types

1. Stocks or equities

2. Bonds or fixed income securities

3. Money market investments

Derivatives

1. Options

2. Futures

Unit trusts

1. Money market funds

2. Bond funds

3. Equity funds

---------

Bonds or fixed income securities

Bonds are loans issued by companies and governments to borrow money, and they have two main characteristics:

1. They have lifespan greater than 12 months at the time of issue.
2. They typically promise to make fixed interest payments according to a given schedule.

Bonds are hence also called fixed income securities.

Bonds have their own unique terms: Suppose you buy bonds with a face value of $10,000. These bonds mature in 2 years and pay 4% interest annually. The 4% interest equates to $400 a year. The face value of the bond, or the principal amount of $10,000 will be returned to you when the bond matures in 2 years.

-----------------------

Money market securities

Money market securities are similar to bonds except that they are short-term investments. They have two main characteristics:

1. They are loans issued by companies and government to borrow money.
2. They mature in less than a year from the time they are sold, which means that the loan must be repaid within a year.

Some of the most common money market securities include

Treasury Bills (issued by the government and considered the safest investments around),
fixed deposits,
bank savings accounts and
certificates of deposits.

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My 18 points guide to Successfully compounding your money in Stocks

Be a good stock picker.
Think as a business owner.
Always look at value rather than the price. Do the homework.
Buy and hold is alright for selected stocks.
Compounding is your friend, get this to work its magic.
Mr. Market is there to be taken advantage of. Do not be the sucker instead. BFS;STS.
Always buy a lot when the price is low.
Never buy when the stock is overpriced.
It is alright to buy when the selected stock is at a fair price.
Phasing in or dollar cost averaging is safe for such stocks during a downtrend, unless the price is still obviously too high.
Do not time the market for such or any stocks.
By keeping to the above strategy, the returns will be delivered through the growth of the company's business.
So, when do you sell the stock? Almost never, as long as the fundamentals remain sound and the future prospects intact.
The downside risk is protected through only buying when the price is low or fairly priced.
Tactical dynamic asset allocation or rebalancing based on valuation can be employed but this sounds easier than is practical, except in extreme market situations.
Sell urgently when the company business fundamental has deteriorated irreversibly.
You may also wish to sell should the growth of the company has obviously slowed and you can reinvest into another company with greater growth potential of similar quality. However, unlike point 16, you can do so leisurely.
In conclusion, a critical key to successful investing is in your stock picking ability.

http://myinvestingnotes.blogspot.com/2012/07/my-18-points-guide-to-successfully.html

11 Lessons From Peter Lynch

Peter Lynch taught me:

1. Behind every stock is a company. Find out what it’s doing.
2. Never invest in any idea you can’t illustrate with a crayon.
3. Over the short term, there may be no correlation between the success of a company’s operations and the success of its stock. Over the long term, there’s a 100% correlation.
4. Buying stocks without studying the companies is the same as playing poker – and never looking at your cards.
5. Time is on your side when you own shares of superior companies.
6. Owning stock is like having children. Don’t get involved with more than you can handle.
7. When the insiders are buying, it’s a good sign.
8. Unless you’re a short seller, it never pays to be pessimistic.
9. A stock market decline is as predictable as a January blizzard in Colorado. If you’re prepared, it can’t hurt you.
10. Everyone has the brainpower to make money in stocks. Not everyone has the stomach.
11. Nobody can predict interest rates, the future direction of the economy, or the stock market. Dismiss all such forecasts and concentrate on what’s actually happening to the companies in which you’ve invested.

Lynch’s advice had a profound effect on my stock market approach. He taught me that investment success isn’t the result of developing the right macro-economic view or deciding when to jump in or out of the market. Success is about researching companies to identify those that are likely to report positive surprises.

Capital Expenditure

A great company with a Durable Competitive Advantage will have a ratio of Capital Expenditures to Net Income of less than 25%. Less is better.

Capital Expenditures are expenses on:
- fixed assets such as equipment, property, or industrial buildings
- fixing problems with an asset
- preparing an asset to be used in business
- restoring property
- starting new businesses

A good company will have a ratio of Capital Expenditures to Net Income of less than 50%.

A great company with a Durable Competitive Advantage will have a ratio of less than 25%.

Less is better.

Benjamin Graham's 113 Wise Words

The true investor scarcely ever is forced to sell his shares, and at all times he is free to disregard the current price quotation. He need pay attention to it and act upon it only to the extent that it suits his book, and no more. Thus the investor who permits himself to be stampeded or unduly worried by unjustified market declines in his holdings is perversely transforming his basic advantage into a basic disadvantage. That man would be better off if his stocks had no market quotation at all, for he would then be spared the mental anguish caused him by other persons' mistakes of judgement."

Philip Fisher's Wise Words

"The refusal to sell at a loss, while completely natural and normal, is probably one of the most dangerous in which we can indulge ourselves in the entire investment process.

More money has probably been lost by investors holding a stock they really did not want until they could 'at least come out even' than from any other single reason. If to these actual losses are added the profits that might have been made through the proper reinvestment of these funds if such reinvestment had been made when the mistake was first realized, the cost of self-indulgence becomes truly tremendous."

(Common Stocks and Uncommon Profits)

The Ultimate Hold-versus-Sell Test

Here is the overriding primary test, followed by observations on why it is so critically important:

Knowing all that you now know and expect about the company and its stock (not what you originally believed or hoped at time of purchase), and assuming that you had available capital, and assuming that it would not cause a portfolio imbalance to do so, would you buy this stock today, at today's price?

No equivocation. Yes or no?

Answers such as maybe or probably are not acceptable since they are ways of dodging the issue. No investor probably buys a stock; they either place an order or do not.

Here is the implication of your answer to that critical test: if you did not answer with a clear affirmative, you should sell; only if you said a strong yes, are you justified to hold.

Some thoughts on Analysing Stocks (KISS)

Ideally a stock you plan to purchase should have all of the following charateristics:

• A rising trend of earnings dividends and book value per share.
• A balance sheet with less debt than other companies in its particular industry.
• A P/E ratio no higher than average.
• A dividend yield that suits your particular needs.
• A below-average dividend pay-out ratio.
• A history of earnings and dividends not pockmarked by erratic ups and downs.
• Companies whose ROE is 15 or better.
• A ratio of price to cash flow (P/CF) that is not too high when compared to other stocks in the same industry.

Margin of Safety Concept: Stocks should be bought like groceries, not like perfume

The high CAGR in the early years of the investing period, due to buying at a discount, tended to decline and approach that of the intrinsic EPS GR of the companies over a longer investment time-frame.

Chapter 20 - “Margin of Safety” as the Central Concept of Investment

A single quote by Graham on page 516 struck me:

Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions.

Basically, Graham is saying that most stock investors lose money because they invest in companies that seem good at a particular point in time, but are lacking the fundamentals of a long-lasting stable company.

This seems obvious on the surface, but it’s actually a great argument for thinking more carefully about your individual stock investments. If most of your losses come from buying companies that seem healthy but really aren’t, isn’t that a profound argument for carefully studying any company you might invest in?

myinvestingnotes.blogspot.my (Bullbear Buffett Stock Investing Notes)

Tuesday, 30 July 2013

How to Invest Your MONEY: 30 Key Personal Investment Opportunities

Saturday, 25 April 2009

Interesting questions in a survey

Monday, 1 December 2008

Investment : Types & Overview

Tuesday, 28 October 2008

Major types of Investments

All equity security investments present a risk of loss of capital

The Ultimate Hold-versus-Sell Test

Some thoughts on Analysing Stocks (KISS)

Benjamin Graham

Sell the losers, let the winners run.

Investment Style

Warren Buffett

Political and Economic News

Interesting Blogs