Know the best Stock Market Investment Strategy of all times

The best stock market investment strategy is to give your self time to learn the process of investment. To learn the details of the stock market investment strategy one needs to be patient. Successful investors are like scholars and it takes time to become a scholar. this article aims at providing stock market investment strategy tips to its readers by listing below top three (3) steps of investment.

Stock Market Investment Strategy one (1) – start Investing form today

Best investment tip that can be given to a budding investor is that the stock investment is learnt best while implementing. Encountering mistakes and learning form ones bad decisions is the best stock market investment strategy. Staring the journey of investment with a plan is ideal. Setting up goals, organizing resources for investing and setting up time bound targets are basics of stock market investment strategy. the most common form of investment plan is linked to retirement form job. Suppose a man is 35 years of age and he wants to retire in next 20 years, then he must know how much ($) he shall have before retirement.

Stock Market Investment Strategy two (2) – know the business before buying its stock and keep your self informed about other investment options available.

Taking a course on financial investment is not such a bad idea. But of course not many will agree with me and rather my advice will go to deaf ears. So better I will share something which is more practical and usable. Before one starts investing in stocks it is important to know about what alternative investment options are available in the market. in order to set up a fool-proof stock market investment strategy it is most important to know what other options. until an investors know about other options he can never appreciate the magnitude and dignity of stock market investment. I can tell you there are majority of people who are in this business of stock market investment without even knowing the basics of investment. These are the people who have made this stock market investment strategy look more like a gambling than a profession. I will still repeat, investment are a profession of scholars and this is the reason why so many mediocre claim to know stock market investment. in reality, to invest like a champion investor, stock market investment strategy shall be developed only after one knows the key concept of business. and the best way to learn business is to read the financial statements of companies. Tell me how many so called investors have ever read a balance sheet and income statements of a company before buying its stocks. if one asks them about the importance of cash flow in evaluating the value of stocks they will give a blank mysterious look. But this is the difference between a champion investors and part time stock traders. Investors read financial reports for investing and traders reads morning dailies for some quick tips. Knowing a business before buying its stocks is the best stock market investment strategy.

Stock Market Investment Strategy Three (3) – Be a disciplined investor.

A disciplined, focused and a long term investor has been observed to outperform the market better than even the qualified investors. a disciplined investor can also be the one who has continuously invested in the diversified mutual fund. his value addition to investment in only limited to starting a systematic invent plan (SIP) and rest in done by the fund manager. a disciplined investor is also the one who keeps an eye on each and every market dips more than 15% and is prompt enough to pump his money in.

Conclusion

The best stock market investment strategy is to keep the process of investment as simple as possible. Invest with a strategy that complements your personality. if you are one who does not believing in taking lot of risks in life, then you are one to invest in blue chip companies. if you are more dynamic and has some spare money, then you can invest in mid cap stocks and funds. these stocks are very volatile, but if invested for long term then it may give above average returns.

http://forex-trading-store.com/investments/know-the-best-stock-market-investment-strategy-of-all-times.html

Financial Education: Play and learn about finance

Star Education Fair
Sunday October 10, 2010

Play and learn about finance

BY ALYCIA LIM
educate@thestar.com.my

TO INSTIL the habit of savings and prudent financial management among the nation’s youth, Perbadanan Insurans Deposit Malaysia (PIDM or the Malaysia Deposit Insurance Corporation) recently launched an online competition.

Called “MoneySmart Online Game”, it is part of the corporation’s educational programme for secondary and tertiary education students.

Running for the first time this year with the support of the Education Ministry, the programme aims to reach out to students through road shows and talks in secondary schools, colleges and universities.

PIDM chief operating officer Md Khairuddin Arshad said that the competition was an initiative from PIDM to enhance public awareness on the role of PIDM through interactive activities.

He added that since the soft launch in July, roadshows have been held at over 100 secondary schools and about 25 higher education institutions. They are targeting a total of 200 schools by the end of November.

“The schools have been identified according to the ratio of urban and non-urban schools, and we make sure that this covers every state in the country.”

Education Ministry deputy director-general (general policy and educational development) Dr Khair Mohamad Yusof applauded PIDM’s efforts, saying that the ministry had always welcomed initiatives from organisations to support the education development of the young generation in this country.

He added that the teaching and learning process today required the involvement of society, and should not only be the role of an educator. Through a creative and interactive way, the project helps to enhance the knowledge and skills of all aspects of financial management to local students.

The entire programme, including the production of board games and comic books to be distributed to the schools, amounted to approximately RM1mil.

Md Khairuddin said: “I believe this investment will give good returns, and it is a part of our contribution to the country’s financial literacy growth.”

The online game competition, which depicts real-life stages beginning from the decision to pursue an education to the retirement stage will end on Nov 30.

The results will be announced early next year.

http://thestar.com.my/education/story.asp?file=/2010/10/10/education/7145680&sec=education

How to firm up your investing knowlege

By Chris Walker,
Money Magazine, April 2010

Most of us could do with some help and education to increase our chances of succeeding at share investing. No matter how much we know, or think we know, about shares, there’s always more we can learn.

Arguably the most logical place to go to learn more about Australian share investing is the Australian Securities Exchange (ASX) itself.

Certainly the ASX has a keen self-interest in getting more people enthused and involved in share investment.

It generates its revenue from trading, but it would be churlish not to give it full credit for the wide range of educational share courses and programs it offers, most of them free.

To start, visit the ASX website.

Here you will find a wide array of educational resources including free online investment courses in shares, warrants and instalments, options, ASX-listed CFDs (contracts for difference) and futures.

To give you an idea of what’s offered, the ASX’s online warrants and instalments education is divided into eight interactive courses, titled:

# The mechanics of the warrants market
# Introduction to instalments
# How to buy and sell instalments
# Instalment pricing
# Instalment strategies
# Instalment strategies for self-managed super funds
# Self-funding instalments
# Rolling instalments

Each course is delivered via a downloadable PDF document, with the time required to complete all eight of them estimated at 115 minutes.

ASX share courses available for free download include:

# Why and how to invest
# How to buy and sell shares
# Trading simulation
# Sharemarket investment strategies
# Fundamental analysis
# Technical analysis

Each of the share courses is estimated to take 10 to 15 minutes to complete.

Other educational materials available on the site include free downloadable booklets, audio-visual presentations on topics such as dividends, understanding annual reports and listed managed investments. There are also podcasts, ASX sharemarket games and a simulator for trading ASX-listed CFDs.

About the only things that aren’t free on the ASX educational website are the ASX Way share books available at around $30 to $40, and the lunchtime Investor Hour seminars held regularly in state capitals that cost the princely fee of $5.

Online brokers also offer help with getting started in trading through information, seminars and ways of practising trading before you have to commit your cash. For example, online CFD and forex broker GFT has a free practice CFD trading account.

If you want more in-depth sharemarket education, you are going to have to devote more time and no doubt have to pay.

A number of organisations offer share education courses, locatable on the internet, and these need to be looked at closely before you hand over your course fees. This is to ensure that you’re getting good value and impartial information, and are not being roped into using a trading system promoted by the course provider.

Melbourne-based investment company Wealth Within offers two ASIC-accredited shares education courses for serious share investors. Its diploma of share trading and investment can be done full time, or part time. Delivered online, encompassing web seminars, completing a workbook and exams, this course costs $5950.

A shorter version, likely to take three to six months to complete, costs $3950. Both courses count towards continuing professional development as specified by the federal government. Perth-based Pro Trader offers share investor courses including one-day training workshops for $695 or evening workshops for $55 a person. Dates and details are on its website.

http://money.ninemsn.com.au/article.aspx?id=1043338

Stock Investing Tips For Beginners – Making Sound Investment Decisions

Much of my investment strategies are derived from fundamental investing and value investing. I adopt strategies similar to Warren Buffett not simply because he is a well known investor but because they make the most sense to me.

That is the key to successful stock investing. Do not listen to anyone just because you think he is more experienced in stock investing then you are. Rather, seek to think and analyze and read more on your own before deciding which strategy best suits you. Once you have developed your own investment philosophy, stick to it and trust only yourself.

My Investment Philosophy

1. Do not lose money.

As many people already know, Warren Buffett famously put forth his two rules in stock investing in a humorous way in which Rule number 1 is "Never Lose money" while rule number 2 is " Do not forget rule number 1".

Capital preservation is important because a stock that has lost half its value will need to double in value before you get back to where you started. That is why you must be extremely cautious in your choice of stocks and that brings us to rule number 2.

2. Having a Margin of Safety

The margin of safety, simply put is a buffer that you put in place between what you perceive to be the value of the stock and its price. If you value a stock to be worth 1 dollar and you only buy it if its price is 50cents, then your margin of safety is 50 percent.

Deciding how much margin of safety you should give to a stock varies for companies in different industries and is another topic in itself.

In summary, a margin of safety is necessary to protect your capital in case you were wrong in your initial assessment of a stock pick. That way, even if you were wrong, you would have purchased the stock at a much lower price then if you had not catered for a margin of safety.

3. Invest for the Long Term

There is no way to time the market, but many people seem to think other wise. They buy when the stock dips slightly and hopes that in the near future they can sell it for a profit. These people usually adopt a "hit and run" strategy where they are contented with making a few 100 dollars every time they make a trade. They also have a cut loss strategy where they will exit the market if the price drops beyond a certain amount within days of purchasing the stock.

The truth about the stocks market is that real money is made in a few days. If you are frequently entering and exiting the market, chances are that during the few days of a real rally in price, you won't be in the market, thus missing out on earnings.

Investing for the long term also saves you on commissions paid to the broker, capital gain taxes and puts the power of compounding into play. The difference between trading in the market and buying for the long term is significant and should not be ignored.

4. Knowing when to sell and when not to sell

Even though I advocate investing for the long term, that doesn't mean holding on to my investments forever. When I value a stock, I already have in mind how much the stock is worth and therefore already have an exit price in mind. The purpose of value investing is to purchase this stock at a significant discount from its value.

However, there could be times when the market is euphoric and the price of the stock surges way beyond what I have valued it at. At this point of time, I will reassess the company to see if I have left out any key news or factors which could be responsible for the increase in price. If my asessment of the company remains the same, I will sell the stock because there is no reason why I should not take advantage of the insanity of the market.

It is important not to be greedy at this point of time and keep increasing the exit price you have set. Have an exit price and stick to it.

The reverse is true also. Most people panic and sell when the price drops and that doesn't make sense. When the price of a stock drops, check the fundamentals again. If nothing has changed, then your assessment of its value should be the same and this means that the stock is at an even greater discount then what you have previously bought at. In this case, you should take the opportunity to buy in more of this stock.

5. Keeping Cash with you when there are no good stocks to buy

There are many reasons for keeping cash with you when there are no good stocks to buy. Many people find it difficult to do that. The moment they have some cash in hand they want to buy some stocks because if they don't, they feel that they are not in the market and thus not "investing".

Also, keeping cash with you allows you to capitalize on sudden dips in the stock prices due to some market fluctuations which are not resulted from a change in the companies fundamentals. In these cases, you should average down and purchase more of that stock. The worst thing that can happen to you is not having cash to average down on a purchase which has now presented a greater discount then before, due to your need to always keep all your money in the market to "feel that you are investing".

Summary

Investing is not just about the buying of stocks. The homework and preparation behind identifying which stock to buy is the true key factor for successful stock picking. Many people spend alot of their time checking the prices of the stocks they have purchased several times a day. That time is better spent researching the company and its business. Ultimately, checking the price of a stock several times a day will have no influence on the price and the companies fundamentals. But I am sure many people are guilty of this, as I so clearly see in my workplace, where everybody has a small window opened up to check the stock prices every now and then.

To read more stock investing tips and strategies written in a clear and concise way for layman and beginners to get started, visit http://www.stockinvestingcentral.com.

Author: Jax Woon
Article Source: EzineArticles.com
Provided by: Make PCB Assembly

Related Reading:

Stock Market for Beginners

How To Make Money In Todays Stock Market (The Beginners Guide To Making Money In The Stock Market)

Bulls Battle Bear
http://stocksadvices.com/stock-investing-tips-for-beginners-making-sound-investment-decisions/

Keep investing in your own knowledge bank

Warren Buffett has said that he doesn't know any highly intelligent people who aren't voracious readers. It's unlikely you'll develop a great long-term track record without also investing in your own knowledge bank. These recommendations set you up to make a healthy deposit.

Wednesday February 10, 2010

How to improve your investment skills

Personal Investing - By Ooi Kok Hwa

WE have been asked by many readers on ways to improve their investment skills. In fact, for all of us who invest, it is one of the essential skills that we need to acquire in our lifetime. Like it or not, we need to have it if we need to generate returns for our investment.

All investors want good returns from their investments. However, most of the times, instead of generating returns, retail investors are suffering from losses from their investments. We feel that one of the key differences between an intelligent investor versus a normal investor is that the intelligent investor will be aware that he may make mistakes in some of his investment decisions while a normal investor tend to overlook the fact that he will make wrong decisions no matter how good he thinks he is.

Despite extensive research on certain listed companies, due to some unforeseen changes in certain fundamental factors, even good value companies may suffer losses. Under such circumstances, an intelligent investor will admit that he had made a mistake in his investment decision and will cut losses fast.

However, the problem with most investors is that they refuse to face their mistakes; some are not willing to cut their losses even though they are aware of their mistakes.

Hence, rule number one in investing is that we must be fully aware that regardless of whether you are an investment guru or an average investor, everyone will make mistake in his investment decisions. That’s why some experts say: “When somebody mentions that they have more experience than you, they mean that they have incurred more losses than you in stock market.” The key is to learn from our mistakes.

In order to avoid incurring losses in stock market, we need to develop our own investing system that suit our needs, skills, knowledge and risk tolerance level.(Comment:  Time horizon, risk tolerance and investment objectives)  The investing system can be adopted from the fundamental analysis, technical analysis or combination of both. If we ask some remisiers, they will most likely tell you that they need two to three years to develop their own investing system that can help them to generate returns from stock market.

One of the fastest ways to acquire investing knowledge is through reading books relating to investment. There are many good investment books in the market. However, since every investor has different preferences, the best way is to visit bookstores and look for investment books that he or she can understand and can offer the skills needed. For beginners, always start with some basic investment books that explain well on key investment concepts.

Here are some good investment book titles for consideration: The Intelligent Investors (by Benjamin Graham), The Essays of Warren Buffett: Lessons for Corporate America (Warren Buffett and Lawrence A. Cunningham) and Rule #1 (Phil Town). For advanced investors, you may consider Security Analysis (by Benjamin Graham and David Dodd), which is still one of the best investment books in the world.

Apart from reading books, investors need to read more business news in newspapers and magazines to keep themselves updated on the latest happenings. In addition, many newspapers, magazines and websites also publish good articles for the purpose of educating general public on investment. For example, investors can get good investment knowledge from website like www.min.com.my, by Securities Industry Development Corp.

Reading analysts’ research reports will enhance our understanding on some issues and factors in valuation as well as comments on some corporate strategies and developments. This knowledge is crucial in helping us making better investment decisions. Besides, for those serious fundamental investors, they may consider buying books like Stock Performance Guide (by Dynaquest Sdn Bhd) and Shares (Pioneers & Leaders (Publishers) Pte Ltd), which will provide all the essential investment information like companies’ background and some key critical investment information.

Another way to acquire investing knowledge is through attending investment training classes. There are many types of investment training classes, for example, classes on fundamental investment, technical analysis, currency trading or option trading. Given that a lot of these classes are quite expensive, we need to check whether investment training suits our needs. We believe some of those classes may be able to help investors generating returns, however, they require higher level of discipline and commitment.

Before we start investing with “real” money, one of the ways to gain experience and at the same time test out our skills is by building up a “virtual” portfolio and investing using “virtual” money. We can always try out our investment skills through playing a simulated investment game and monitor the investment returns before putting the real money into the stock market. Besides, we should also start young. If we acquire these investment skills at younger age, the losses that we may incur will be much lower than trying them when we are getting nearer to our retirement age.

● Ooi Kok Hwa is an investment adviser and managing partner of MRR Consulting.

http://biz.thestar.com.my/news/story.asp?file=/2010/2/10/business/5646486&sec=business 

Comment:  Find a mentor.  Coat-tail on him or her for a period of time during your early years of investing.  

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

Warren Buffett used the analogy of attending the university to explain the core difference between price and value.  The school fees is the price you paid for the education.  Value is what you get out of the education.

Those wishing to learn investing needs to read widely.  Invest in the many good investment books available, preferably those classics written by actual investors.

Regarding attending talks, I have some reservations.  It is unlikely that you will learn enough to develop a safe investing philosophy and strategy in a few hours, other than an introductory.

Here are some good videos on investing:

****Value Investing Conference (Videos)

****Warren Buffett MBA Talk on Investing and Stock Market Wisdom (Videos)

Saving and Investing - Videos

Introduction to Valuation - Videos

Saving and Investing are very important topics - Introduction Videos

 

How do asset classes fit in with your profile?

From answering the 10 simple questions (reference below), your total score tells you more about yourself.  Three basic profiles emerged and helped set the necessary guidelines for your investment portfolio.

The three basic profiles and their respective investment objectives are:

• You cannot afford to make mistakes: Conservative investment objectives
• You are carefully weighing up your options: Prudent investment objectives
• You want to grow bigger and better: Aggressive investment objectives

Click here to find out what asset classes these respective investors should include in their portfolios.
http://spreadsheets.google.com/pub?key=t5u-KMcEYg81UlomoCgxU9A&output=html

Read also:

What money means to you? Answer 10 simple questions.

http://myinvestingnotes.blogspot.com/2010/01/what-money-means-to-you-answer-10.html

Understand what money means to you: Answer 10 simple questions : Sheet1

http://spreadsheets.google.com/pub?key=tr9oMvjAsDJvkcPgXdd763A&output=html

How Do I Successfully Research Stocks For Myself?

This young investor wishes to invest in the stock market and he asked for some advice.  The myriad of responses to his request are interesting readings.


http://bartski.tv/how-do-i-successfully-research-stocks-for-myself/?utm_source=rss&utm_medium=rss&utm_campaign=how-do-i-successfully-research-stocks-for-myself

How Do I Successfully Research Stocks For Myself?
by Bart Ski on January 23, 2010 · 11 comments

in Business Q & A

I wish to start testing the stock market waters because I know being a young investor can be beneficial.
At this point, I’m only slightly familiar with ‘volume’, the three types of stocks (penny, growth, blue chip), and the two general methods of making money (dividends and stock prices rising).
But everything else — especially detailed researching is extremely foreign to me. I’m tempted to just take internet advice, but I know that is not the most secure way to decide where to place my money.
Yet besides reading opinion articles, I don’t know which pieces of information about the company to search for, and furthermore, I have no idea about how to put these pieces of information together to form a comprehensive opinion about a stock.
Any tips about researching stocks — especially how company history etc– plays into the mix are welcome.

Thank you all in advance!


{ 11 comments… read them below or add one }

1 Mavestyn M January 23, 2010 at 8:29 am
I hate to bring you the bad news but, it is very hard to SUCCESSFULLY research stocks by yourself. Unless you have a degree in finance; like I do. The best thing you can do is to invest your money in a DIVERSIFIED PORTFOLIO. Don’t try to buy one stock because you’ve heard some news of it and it seemed interesting, or if the stock was recently upgraded by big name investment banking firms like Goldman Sachs, Morgan Stanley, or Bear Sterns.
The fact of the matter is that it is VERY RISKY to do that. You can lose a lot of money that way. It’s too risky and not worth it. Imagine how you would feel if you invested $5000 in a stock and then it drops down to $2500 in a week.
Best thing to do is to build a portfolio of stocks (using several industries) which are diversified and carry a very low risk. There should be at least 14 stocks in your portfolio. Ideally, there should be 30, but not many people can have enough money to buy 30 different stocks.
However, if you really want to learn how to research stocks, then I suggest studying applied equity valuation methods such as the EP or the DCF models.

2 Kriss71 January 23, 2010 at 9:45 am
Learn technical analysis. Then you’ll be able to identify the general trends in prices, you need to be able to understand the charts before you start investing. News is just a marketing tool. The price does not lie.
Check out this ugly guy’s blog to get an idea of what i’m talking about. http://blog.fallondpicks.com/

3 L H January 23, 2010 at 12:41 pm
Read, Read, Read. and listen to others. Yahoo finance actually has alot of great articles. Most articles will have to links to companies, from there you can check out their financials which start out greek, but make sense after awhile. You can set up practice portfolios on yahoo and tract stock performance to see if you have what it takes, and it is better than learing the hard way.
In every industry there are winners, so find something you like, and focus on that area. You will probably know more about that industry, and have a better Idea of where the next moves will be.

4 Fallond January 23, 2010 at 2:41 pm
“Ugly” Eh???

Thanks for the reference link – I also have a site which features stocks with listed stop, target prices and annotated charts.
http://fallondpicks.com/Members/Breakout.htm
Best wishes,
DJF

5 muncie birder January 23, 2010 at 9:13 pm
There are a lot of books that will tell you about investing. You might start at your library or go out to Amazon and check out what they have. If you open an account with Fidelity, they have a lot of research material on companies. A great deal more than TD Ameritrade for example.
There is the option of investing in mutual funds. That way you do not need to do so much research. You just have to determine which mutual funds are good and the universe is much smaller. You can buy mutual funds directly from the fund company or many through a stock broker such as Fidelity or TD Ameritrade. Some you can even buy like stocks.
But first things first. Get a couple of books and begin reading on investing in stocks. There is even a “Investing for Dummies” book and it is highly thought of.

6 A K January 24, 2010 at 1:27 am
new york times

7 The Guru® January 24, 2010 at 6:06 am
First gather some general idea as to what is happening in the markets, the macro economic situation and all other related business info, for all that you must read a good business paper.
Next would be learn more abt what kind of companies and sectors you want to invest in. You can do that by reading the Co’s financial annual reports, its filings with the SEC, etc , then understand the trend of the share, its price, volume and related info.
More imp keep your eyes and ears open, remember in the stock markets, Information is wealth.

8 composer January 24, 2010 at 12:47 pm
Since you are young you don’t need a get rich quick thing, so look for the Blue Chip stocks- big companies that have been around a long time and will be around when you’re old. Dividends are a good thing. There are stock funds that invest in a wide range of companies which minimize your chance of losing money. Then you don’t have to watch your stocks everyday- just sit back knowing that, barring a depression, history is on your side.

9 msbluebe January 24, 2010 at 6:31 pm
There are stock investment clubs which are very good in your local community who study stocks. Also the NAIC has a great magazine and non profit organization that teaches people how to invest. Good luck.

10 wiley22 January 25, 2010 at 12:36 am
go to Yahoo! Finance-lots of great stuff there…

11 kath6814 January 25, 2010 at 6:45 am
I personally use Sharebuilder. Quite a lot of information on that site.
Good luck!

Before you risk your cash - put yourself through some practice drills first

There is nothing to keep you from investing in mutual funds and buying your own stocks as well. 

Much of the advice here is useful:

• the advantages of starting early,
• of having a plan,
• of sticking to the plan, and,
• of not worrying about crashes and corrections.

How do I figure out which stocks to pick or which fund to invest? Where do I get the money to buy them?

Since it's dangerous to put money into stocks before you figure out how to pick them, you should put yourself through some practice drills before your risk your cash. 

You'd be surprised how many people lose money by investing in stocks before they know the first thing about them!  It happens all the time. 

A person goes through life with no experience in investing, then suddenly receives a lump-sum retirement benefit and throws it all into the stock market, blind, when he or she can't tell a dividend from a divot.  There ought to be some formal training for this, the way they have drivers' ed in school.  We don't put people on the hghway without giving them a few lessons in the parkng lot and teaching them the rules of  the road.

If nobody else is going to train you, at least you can put yourself through training, trying out various strategies on paper, to begin to get a feel for the way different kinds of stock behave. 

Again, a young person has an advantage. 

• You have the luxury of experimenting with imaginary investments, at least for a while, because you have many decades ahead of you. 
• By the time you have the money to invest, you'.ll be fully prepared to do it for real.

Comment: 
The safest and best way for young investors is to have a mentor with a proven track record.

Your main reason for buying stocks in the first place.

To own shares in good companies.


People are always looking around for the secret formula for winning on Wall Street, when all along, it's staring them in the face: Buy shares in solid companies with earning power and don't let go of them without a good reason. The stock price going down is not a good reason.

Consistently losing money in stocks - don't blame the stocks, it is not the fault of the stocks. You need a plan.

When people consistently lose money in stocks, it's not the fault of the stocks.

Stocks in general go up in value over time.

In 99 out of 100 cases where investors are chronic losers, it's because they don't have a plan.

They buy at a high price, then they get impatient or they panic, and they sell at a lower price during one of those inevitable periods when stocks are taking a dive.

Their motto is "Buy high and sell low," but you don't have to follow it.

Instead, you need a plan.

The Importance of Saving, Investing and Acquiring Financial Education Early

A Beginner's Guide to the Basics fo Investing and Business. Why save and invest early?

The junior high schools and high schools of America have forgotten to teach one of the most important course of all.  Investing.

What's often left out is

• how saving money from an early age is the key to future prosperity,
• how investing that money in stocks is the best move a person can make, next to owning a house, and
• how the earlier you start saving and investing in stocks, the better you'll do in the long run.

We are taught little about the millions of businesses, large and small, that are the key to our prosperity and our strength as a nation.  Without investors to provide the money to start new companies that hire new workers, or to help older companies grow bigger, become more efficient, and pay higher wages, the world as we  know it would collapse and there'd be no jobs for anybody, and the United States would be out of luck.

In our own schools, we don't teach the basics of how this economic system works, and what's good about it, and how you can take advantage of it by becoming an investor.

Investing is fun.  It's interesting. 

• Learning about it can be an enriching experience, in more ways than one. 
• It can put you on the road to prosperity for the rest of your life, yet most people don't begin to get the hang of investing until they reach middle age, when their eyes start to go bad and their waistlines expand. 
• Then they discover the advantages of owning stocks, and they wish they'd known about them earlier.

There is nothing about investing that a woman can't do as well as a man.  Also, when you hear somebody say, "He is a natural-born investor,' don't believe it.  The natural-born investor is a myth.

The principles of finance are simple and easily grasped.  Principle number one is that savings equal investment. 

• Money that you keep in a piggy bank or a cookie jar doesn't count as an investment, but any time you put money in the bank, or buy a savings bond, or buy stock in a company, you're investing. 
• Somebody else will take that money and use it to build new stores, new houses, or new factories, which creates jobs. 
• More jobs means more paychecks for more workers. 
• If those workers can manage to set aside some fo their earnings to save and invest, the whole process begins all over again.

It's the same story for every family, every company, every country. 

• Whether it's Belgium or Botswana, China or Chile, Mozambique or Mexico, General Motors or General Electric, your family or mine, those who save and invest for the future will be more prosperous in the future than those who run out and spend all the money they get their hands on. 
• Why is the United States such a rich country?  At one point, we had one of the highest saving rates in the world.

A lot of people must have told you by now that it is important to get a good education, so you can find a promising career that pays you a decent wage.  But they may not have told you that in the long run, it's not just how much money you make that will determine your future prosperity.  It is how much of that money you put to work by saving it and investing it.

The best time to get started investing is when you're young. 

• The more time you have to let your investments grow, the bigger the fortune you'll end up with.  But this introduction to finance is not only for the young people.  It's for beginning investors of all ages who find stocks confusing and who haven't yet had the chance to learn the basics.

People are living much longer than they used to, which means they'll be paying bills for a lot longer than they used to.

•  If a couple makes it to 65, there's a good chance they'll make it to 85, and
• if they make it to 85, there's a decent chance one of them will reach 95. 

In order to cover their living expenses, they'll need extra money, and the surest way to get it is by investing.

It is not too late to start investing at age 65.  Today's 65 year olds might be looking at 25 more years during which their money can continue to grow, to give them the wherewithal to pay the 25 years' worth of extra bills.

When you're 15 or 20, it's hard to imagine the day will come when you'll turn 65, but if you get in the habit of saving and investing, by then your money will have been working in your favour for 50 years.  50 years of putting money away will produce astonishing results, even if you only put away a small amount at a time. 

The more you invest the better off you'll be, and the nation will be better off as well, because your money will help create new businesses and more jobs.


Ref:

Preface
Learn ot Earn
by Peter Lynch and John Rothchild
A Beginner's Guide to the Basics of Investing and Business

Basics of investing should be taught in school.

Many investors, including some with substantial portfolios, have only the sketchiest idea of how the stock market works.  The reason, is that the basics of investing - the fundamentals of our economic systema dn what they have to do with the stock market - aren't taught in school.  At a time when individuals have to make important decisions about saving for college and retirement funds, this failure to provide a basic education in investing can have tragic consequences.

For those who know what to look for, investment opportunities are everywhere.  The average high school student is familiar with Nike, Reebok, McDonald's, the Gap, and the Body Shop.  Nearly every teenager in America drinks Coke or Pepsi, but only a very few own shares in either company or even understand how to buy them.  Every student studies American history, but few realize that the US was settled by European colonists financed by public companies in England and Holland - and the basic principles behind public companies haven't changed in more than three hundred years.


Ref: 
Learn to Earn
by Lynch and Rothchild

In this book, the authors explain in a style accessible to anyone who is high school age or older how to read a stock table in the daily newspaper, how to understand a company's annual report, and why everyone should pay attention ot the stock market.  They explain not only how to invest but also how to think like an investor.

Financial Education - Learning the important topics in valuation

Workshop on Equity Valuation & Financial Modeling

Host: Viftech Solutions (Pvt.) Ltd.
Start Time: Wednesday, 20 January 2010 at 09:00
End Time: Thursday, 21 January 2010 at 17:00
Location: PC Hotel, Karachi
Description
This workshop is designed for people who want to learn equity valuation and financial modeling. Participants will be taught to analyze true economic worth of a business, using various valuation techniques. This workshop is ideal for professionals related to corporate finance, investment analysis, risk management, investment banking, corporate banking, brokerage or asset management industries

Pre-requisites
Good understanding of financial statements
Learning Objectives
• Have a clear comprehension of what drives the value of a company
• Make more profitable investment decisions to enhance value
• Understand most widely-practiced and robust valuation techniques
• Know how to critically analyze an investment proposal
• Be better equipped to negotiate terms of an investment transaction
• Be able to choose a valuation method appropriate for your company
Course Outline
Day 1
• Background of company valuation
• Uses of company valuation
• Concept of TVM in financial analysis
• Prepare financial models on Microsoft Excel
• Forecast future earnings/balance sheet/cashflow
• Why accrual accounting can be misleading
• Benefits of cashflow based analysis
• Calculate free cash flow forecasts
• Calculate the enterprise and equity value of a business
• Calculate terminal value of a business
• Explain why WACC is used to discount company free cash flows
• Calculate WACC, cost of debt and cost of equity
• Calculate equity risk premium
• Calculate terminal growth rates
Day 2
• Discuss and apply various cash flow valuation techniques, including dividend discount model, free cash flow to firm and free cash flow to equity
• Discuss Relative Valuations Techniques including P/E, P/S, P/B and EV/EBITDA based valuations
• Discuss other valuation methods including CAPM and Arbitrage Pricing Theory
• Determine the optimal capital structure of a company and its dividend policy
• Work through an example on a listed company
The workshop will include a practical example of equity valuation and financial modeling on a listed company.

Trainer Profile: Mr. Ali Reimoo – National Trainer
Ali Reimoo is an Equity Research Analyst at Habib Bank (Global Treasury). Prior to his current position, Ali has worked as an Equity Analst at Foundation Securities Limited (a Fauji Foundation Company and an affiliate of Macquarie Bank in Pakistan) and BMA Capital. He has been involved in investment analysis industry for over three years, during which he has written and published several analytical reports. His major job responsibilities include; analyzing companies from the perspective of their business risk, growth prospects, investment value and financial wellbeing.

Due to his sound analytical skills, Ali has made a decent reputation for himself. He is also a regular on major TV channels like CNBC Pakistan, Business Plus, GeoTv etc, where he is regularly called as a guest to share his views on the country’s investment climate.

Apart from being an investment analyst, Ali is also a trainer and consultant. His unique skills of understanding client needs and helping them overcome their knowledge gap makes him stand apart from other trainers.

He has successfully helped various professionals develop/improve their financial and analytical skills. Some of the beneficiaries whom he has helped include professionals from reputed organizations like, State Bank of Pakistan, Faysal Bank, HSBC Bank Pakistan, National Bank of Pakistan and Johnson and Johnson Company.
His academic qualifications include; MSc in Finance & Investment from University of Edinburgh, Scotland and BBA/MBA from College of Business Management Karachi. currently he is a CFA level 2 candidate.
Workshop Schedule:
Venue: PC Hotel, Karachi.
Date: 20-21 January, 2010 | 9am to 5pm
Workshop Includes:
Training materials, certificates, tea and snacks, lunch and networking opportunities.
Workshop Investment:
Rs. 11,000/- per participant | Before Due Date
Rs. 12,000/- per participant | After Due Date
10% discount on more than 2 participants from the same organization received before due date.
Participant will bring own Laptop will get Rs. 800/- Off. (Should inform and register before due date)
Other Details
• All the cheques are required be made in favor of ‘Viftech Solutions (Pvt.) Ltd.’
• All nominations shall be confirmed on first–come-first-served basis.
• Limited Seats Available
• Due date for registration is 14 January, 2010
Click this link to Download Registration Form:
http://www.viftech.com.pk/images/Registration%20Form.doc
Further Information & Registrations
Viftech Solutions (Pvt.) Ltd.
Mr. Jahangir Sachwani
Assistant Manager Marketing & Corporate Trainings
Phone: (+92) 332 2109221 | (021) 35055379-80 - 35053480
Email: Jahangir.sachwani@viftech.com.pk

http://pakhr.blogspot.com/2010/01/workshop-on-equity-valuation-financial.html

Give the Gift of Smart Investing

Received an email commercial in my post today.

Stocks have history running in their favor, averaging 11-12% a year, and they outperform just about every type of investment. The trade-off is that stocks come with greater risk. Average market returns are no comfort if you buy at the market peak and sell during the graveyard. Still investing in stocks is no longer as mysterious or as elite an activity as it used to be. Armed with the desire to learn, you can make stocks a powerful source of returns in your portfolio.

Financial success requires an understanding of the investment process and the various factors affecting stocks, bonds, & other financial securities. The Forbes Stock Market Course compiles the information you need to increase your wealth over time.

Since you are already a member of the Forbes family, we'd like to offer you a special deal. If you order the Forbes Stock Market Course today, you will get $50 off the regular price!
 
http://www.forbesinc.com/stockmarketcourse/FSMC-TOC.pdf
 


Comment:

The course content includes all the standard topics essential for those interested in investing. These topics are also dealt with by most investing books.

It is unlikely that one can get enough information by attending a half day session to learn investing. At most you can only have a glimpse of this wide field. Interestingly, a recent course by a blogger widely advertised before the talk was deafly silent post-course! Just wondering.


Merry Xmas folks.

Wealth Begins with Better Knowledge

http://www.stock-market-investors.com/stock-investing-basics/

Learning the Ropes of Investing

Learning the Ropes of Investing
Six Benefits of Joining an Investment Club
© Odiete Eneakpodia

Oct 18, 2009
The path to financial freedom goes beyond just earning money from a regular job and saving it. Successful wealth accumulation begins when we learn how to multiply our money.

A lot of people are today familiar with the need to invest their money however they don’t have the requisite knowledge to make profitable investment decisions especially since the world of investment is fraught with risks and uncertainties.

One way to build knowledge and gain confidence about investing is through investment clubs.

1. What is an investment club?

2.  Benefits of investment clubs

(Access to investment ideas that could boost your personal investment activities
Club meetings provide you access to smart ideas on attractive investment opportunities such as what stock is currently a must buy in the market, new private placement opportunities etc. Sharing in the research of others and the extra bonus of a group setting for discussing investment ideas and issues often enriches the quality of our investment decision making.

Many clubs also develop unique learning activities that could include listening to and watching investment training videos from top investment experts, playing investment games like cash flow 101 developed by Robert kiyosaki, attending investment workshops, etc.)

3.  You could become your own stock analyst

(One thing a rookie investor can learn form joining and participating in the activities of your investment club is the skill to pick stocks he wants to invest in rather than relying on his intuition or his stock broker.

It gives him the skill to analyze stocks and other investments on his own before putting his money. This knowledge acquired will prove useful in his own personal investment activities.)

4.  Leverage the power of numbers to minimize risk

5.  Build wealth gradually and achieve financial independence

(Joining an Investment club enables a newbie investor master the discipline of setting aside a part of your income periodically to invest an ideal strategy to gradually build wealth and achieve financial independence.)

6.  Social networking



Read more: http://investment.suite101.com/article.cfm/learning_the_ropes_of_investing#ixzz0UKk1xBKa

Be an intelligent investor through financial education

In day to day conversations, one can easily gauge that the MAJORITY of "investors" in the market are not intelligent.  An intelligent investor is as defined by Benjamin Graham in his book, The Intelligent Investor.

How can these investors acquire the financial education to guide them through the stock market investment minefields?  How can they acquire the investing philosophy and strategy to help them over many years (or decades) of their investing lifespan?  Above all to ensure that they do not lose their money in the stock market while seeking for a reasonable return.

Inevitably, this will involve acquiring a set of RELEVANT knowledge through their reading, their interactions with the other investors, their interactions with investment professionals and the market.  From personal experience, there is a huge core knowledge that has to be acquired.  This is probably too overwhelming for many potential investors. 

Therefore, though it is good to attend an hour's presentation on investment here and there, or even pay a small sum for a half day session on investment talk, this is not going to transform one into a intelligent investor.   At best, these are introductory sessions to highlight areas of investments where you may wish to explore further. How much knowledge can be acquired in a half day presentation that you cannot acquire from a good book?  At worst, you are "convinced" that you know investing when in fact the small amount of new knowledge you acquire is in fact very detrimental to your long term investing.

There is no substitute to hard work.  You would need to acquire the necessary core financial and investment knowledge.  You do not need very high power investment or financial knowledge.  However, you do need to acquire some simple knowledge in the relevant important fields to guide your investing.  Above all, you will also need to understand behavioural finance to guide your emotions.

By the way, with blogs springing up everywhere, you too have another avenue to observe investing by various individuals.  Learn their good and bad habits.  You will probably find some benefit reading this blog too. 

Good luck in your investing.

http://myinvestingnotes.blogspot.com/2008/12/investment-philosophy-strategy-and.html

http://myinvestingnotes.blogspot.com/2009/09/investing-for-beginners.html

http://myinvestingnotes.blogspot.com/2009/08/learn-to-invest-in-10-steps.html

http://myinvestingnotes.blogspot.com/2009/08/8-signs-of-doomed-stock.html