Wednesday 10 April 2013

A Look Back at Black Monday 1987

After the Crash - Wall Street Week Oct. 23, 1987

The Wall Street Week episode from Friday October 23, 1987 just after the market crash on black Monday October 19. Hosted by Louis Rukeyser, guests included John Templeton, Steven Einhorn and William Schreyer.

Part 2 - Excellent advice from John Templeton.





Reliving the Crash of 87

The Nightly Business Report episode from Black Monday, October 19, 1987. The Dow Jones Average dropped by more than 22% that day to close at 1,738 with volume double the previous record (set the preceding Friday). Just two months earlier the average had peaked at 2,722, a level it would not see again for two years and would revisit for the final time in early 1991.





Tuesday 9 April 2013

Understanding Warren Buffet (16.11.2009)

Not doing anything differently: Buffett (16.11.2009)



Uploaded on 16 Nov 2009
Warren Buffet, chairman and CEO, Berkshire Hathway, has faith in his long standing value investing philosophy

The Wisdom of Warren Buffett

The Wisdom of Sir John Templeton




Sir John Marks Templeton was an investor and mutual fund pioneer. Templeton was born in the town of Winchester, Tennessee. He attended Yale University and was selected for membership in the Elihu society. He financed a portion of his tuition by playing poker, a game at which he excelled. [2] Templeton graduated in 1934 near the top of his class. He attended Oxford University as a Rhodes Scholar and earned an M.A. in law.

Templeton married Judith Folk in 1937, and the couple had three children: John Jr., Anne, and Christopher. Judith died in February 1951 in a motorbike accident. He then married Irene Reynolds Butler in 1958; she died in 1993.

He was a lifelong member of the Presbyterian Church. He served as an elder of the First Presbyterian Church of Englewood (NJ). He was a trustee on the board of Princeton Theological Seminary, the largest Presbyterian seminary, for 42 years and served as its chair for 12 years.

Templeton became a billionaire by pioneering the use of globally diversified mutual funds. His Templeton Growth, Ltd. (investment fund), established in 1954, was among the first who invested in Japan in the middle of the 1960s. He is noted for buying 100 shares of each company for less than $1 ($16 in current dollar terms) a share in 1939 and making many times the money back in a 4 year period. In 2006 he was listed in a 7-way tie for 129th place on the Sunday Times Rich List. He rejected technical analysis for stock trading, preferring instead to use fundamental analysis. Money magazine in 1999 called him "arguably the greatest global stock picker of the century". He renounced his U.S. citizenship in 1968, thus avoiding U.S. income taxes. He had dual naturalized Bahamian and British citizenship and lived in the Bahamas.

John Templeton Investment Wisdom

Richest Man In Babylon Wisdom



The Richest Man in Babylon is a book by George Samuel Clason which dispenses financial advice through a collection of parables set in ancient Babylon. Through their experiences in business and managing household finance, the characters in the parables learn simple lessons in financial wisdom. Originally, a series of separate informational pamphlets distributed by banks and insurance companies, the pamphlets were bound together and published in book form in 1926.
- wikipedia

Philip Fisher 15 Points for Growth Stocks

Top 20 Quotes from Warren Buffett

Warren Buffett - 4 Steps to Picking a Stock





1. You have to deal in things that you are capable of understanding.

2. Then once you're over that filter, you need to have a business with some intrinsic characteristics that give it a durable competitive advantage.

3. Then you should vastly prefer management in place with a lot of integrity and talent.

4. Finally, no matter how wonderful it is, it's not worth an infinite price, so you have to have a price that makes sense and gives a margin of safety considering the natural vicissitudes of life.

It's a very simple set of ideas. The reason that these ideas have not spread faster is they're too simple.

Charlie Munger Quotes

Peter Lynch's 25 Golden Rules of Investment

Peter Lynch Fidelity Investments

Dale Carnegie - How to Stop Worrying and Start Living

How to Stop Worrying and Start Living - Dale Carnegie




Dale Carnegie (1888 -- 1955) was an American writer and lecturer and the developer of famous courses in self-improvement, salesmanship, corporate training, public speaking and interpersonal skills. Born in poverty on a farm in Missouri, he was the author of How to Win Friends and Influence People, first published in 1936, a massive bestseller that remains popular today.

He also wrote How to Stop Worrying and Start Living, a biography of Abraham Lincoln entitled Lincoln the Unknown, and several other books.

One of the core ideas in his books is that it is possible to change other people's behavior by changing one's reaction to them.

Biography

Born in 1888 in Maryville, Missouri, Carnegie was a poor farmer's boy, the second son of James William Carnagey (b. Indiana, February 1852 -- living 1910) and wife Amanda Elizabeth Harbison (b. Missouri, February 1858 -- living 1910). In his teens, though still having to get up at 4 a.m. every day to milk his parents' cows, he managed to obtain an education at the State Teacher's College in Warrensburg. His first job after college was selling correspondence courses to ranchers; then he moved on to selling bacon, soap and lard for Armour & Company. He was successful to the point of making his sales territory of South Omaha, Nebraska, the national leader for the firm.[1]

After saving $500, Dale Carnegie quit sales in 1911 in order to pursue a lifelong dream of becoming a Chautauqua lecturer. He ended up instead attending the American Academy of Dramatic Arts in New York, but found little success as an actor, though it is written that he played the role of Dr. Hartley in a road show of Polly of the Circus.[citation needed] When the production ended, he returned to New York, unemployed, nearly broke, and living at the YMCA on 125th Street. It was there that he got the idea to teach public speaking, and he persuaded the "Y" manager to allow him to instruct a class in return for 80% of the net proceeds. In his first session, he had run out of material; improvising, he suggested that students speak about "something that made them angry", and discovered that the technique made speakers unafraid to address a public audience.[2] From this 1912 debut, the Dale Carnegie Course evolved. Carnegie had tapped into the average American's desire to have more self-confidence, and by 1914, he was earning $500 - the equivalent of nearly $10,000 now - every week.

Perhaps one of Carnegie's most successful marketing moves was to change the spelling of his last name from "Carnagey" to Carnegie, at a time when Andrew Carnegie (unrelated) was a widely revered and recognized name. By 1916, Dale was able to rent Carnegie Hall itself for a lecture to a packed house.[3] Carnegie's first collection of his writings was Public Speaking: a Practical Course for Business Men (1926), later entitled Public Speaking and Influencing Men in Business (1932). His crowning achievement, however, was when Simon & Schuster published How to Win Friends and Influence People. The book was a bestseller from its debut in 1936[4], in its 17th printing within a few months.[3] By the time of Carnegie's death, the book had sold five million copies in 31 languages, and there had been 450,000 graduates of his Dale Carnegie Institute.[5] It has been stated in the book that he had critiqued over 150,000 speeches in his participation in the adult education movement of the time.[6] During World War I he served in the U.S. Army.[7]

His first marriage ended in divorce in 1931. On November 5, 1944, in Tulsa, Oklahoma, he married Dorothy Price Vanderpool, who also had been divorced. Vanderpool had two daughters; Rosemary, from her first marriage, and Donna Dale from their marriage together.

Carnegie died at his home in Forest Hills, New York.[8] He was buried in the Belton, Cass County, Missouri, cemetery. The official biography from Dale Carnegie & Associates, Inc. states that he died of Hodgkin's disease on November 1, 1955.[9]




Dale Carnegie - How to Win Friends & Influence People (audiobook)

Investors care more about performance than fees

Critics say most fund managers are failing to reveal the true cost of investing.

More than a third of investors consider performance the single most important factor when choosing a fund.

Telegraph Fund Supermarket
More than a third of investors consider performance the single most important factor when choosing a fund 


Consumers rank past performance as the most important consideration when choosing a prospective investment, followed by who the fund manager is and how the portfolio is distracted.
Although fees and charges are a hot topic among investment forums and financial advisers, the survey, conducted by the Association of Investment Companies (AIC) using survey data from Morningstar, revealed investors themselves care less about cost.
Jacqueline Lockie, at the AIC, said that investors should rethink their priorities when it comes to constructing their own portfolios.
She considered portfolio composition by far the most important of all the options.
"Research shows us that the way to control returns is to identify the asset allocation," she said. "It’s all about risk."
She considers charges the second most important factor: "All charges on a fund drag back its performance and reduce it. If a fund increased by 7pc in the last year, but the total charges were 1.5pc, the returns to the investor would be only 5.5pc. The bigger the charge, the harder the fund has to work to stand still."
Last week, the chief executive of the Investment Management Association called on fund managers to reveal real investing costs and set out charges on annual statements as pounds and pence.
The charges levied on investments and pensions have come under intense scrutiny in the past two years. The Telegraph has led a powerful campaign against high fees on retirement savings, in particular.
Critics say most fund managers are failing to reveal the true cost of investing. The vast majority of managers of unit trusts and Oeics, the most commonly held investments, advertise an annual management charge, which is normally around 1.5pc.
But this doesn't include the other costs of investing. Analysts also use a measure called the total expense ratio (TER) to compare funds but even this does not capture the full cost.

Tesco faces £1bn writedown to quit America



Tesco is facing a bill of about £1bn to quit its loss-making Fresh & Easy business in the US.

Tesco faces £1bn writedown to quit America
2007 - The first of Tesco's Fresh & Easy shops opens in the US. Since then the company has launched more than 200, employing more than 5,000 people. 
The size of the charge, which will be in the form of a writedown in the value of Tesco’s assets, highlights the torrid time that Britain’s biggest retailer has faced in the US since opening in 2007.
Philip Clarke, the chief executive, is set to confirm in the company’s full-year results next week that Tesco will exit the US after launching a strategic review last year.
However, this will come at the cost of a writedown on the value of Tesco’s investments in the country, including the wholly-owned stores, leases and a major distribution centre in Riverside, California.
Mr Clarke is understood to be working on the sale of the business – with Aldi one of the potential buyers – but a closure of Fresh & Easy and then a piece-by-piece sale of the assets remains the most likely outcome.
Tesco may not reveal the future of Fresh & Easy in the results, but in order to break with the past and underline its determination to leave the US, it is understood that the FTSE 100 company will book a substantial impairment.
Tesco is the third biggest retailer in the world. Under Sir Terry Leahy, it built successful businesses in countries ranging from Ireland to the Czech Republic, South Korea and Thailand.
But Fresh & Easy will go down as one of Sir Terry’s and Tesco’s biggest failures. Other retailers to have suffered in the US include J Sainsbury and Marks & Spencer.
Mr Clarke has been under pressure to review the loss-making Fresh & Easy since taking over from Sir Terry in March 2011.
Last October, Mr Clarke halted new store openings in the US and then announced two months later that Tesco would begin a strategic review because Fresh & Easy “will not deliver acceptable shareholder returns on an appropriate time frame in its current form”.
Mr Clarke said: “This has not been an easy decision but I know it’s the right one.”
Tesco declined to comment on Sunday night.