Value investing is all about picking up bargains on the sharemarket.If you're an investor, with the market at such low levels, now is the time to look at adding to your longer term portfolio.If you're a short term trader, the underpriced stocks can often be the ones to rebound strongly.Where did value investing come from?The world's most famous and successful investor, Warren Buffett is a follower of value investing. In the last 30 years his...more
How do you turn $30,000 into a million dollars? The secret is time and the power of compounding. Here I'll run through this powerful concept which has helped Warren Buffett become one of the richest people in the world.Buffet has long been one of my heroes as the most successful investor in history. But now I feel let down as I read the latest book on Buffet, "The Snowball ・Warren Buffett and the Business of Life".There are some great...more
What is a bear market?Generally a bear market is one where the market has decreased by more than 20%.In Australian the last high point in the market was reached on 1 November 2007 and since then it's dropped 36%. So the Australian market has been in a bear market for the last 11 months.How does a bear market end?The end phase of a bear market is called capitulation. Capitulation is when investors give up on stocks. Generally the view is that stocks are a bad investment and there is mass selling over a short period of time.The problem this time around is that the media is full of talk of capitulation which in itself indicates that total capitulation hasn't come yet. When real capitulation arrives, few will recognise it and ring a bell.Volatility is another indicator of the end. The Volatility Index or VIX index on the Chicago Board of Options reached an all-time high last week indicating extreme volatility. Extreme levels of volatility are usually associated with turning points in the market and not usually associated with trend continuation.Most brokerage houses are taking a cautious 'wait and see' attitude.What can you look out for?Capitulation or the end phase of a bear market...more
If you are looking for a steady income stream from your investments then shares can be an attractive proposition. Not only do shares provide a return in the form of capital gains or losses but most shares also pay a dividend.Traditionally, high yielding shares have been buffered from a downturn in the market. This is because dividends usually get...more
Day trading involves buying and selling shares on the same day. It is extremely difficult to do but if successful, the rewards can be substantial. The flipside is that it is also extremely risky which means that you could see your capital wiped out very quickly. It's easy to focus just on the potential profits to be made but most smart traders will...more
There are many bargains on the market and one way that bargains can be identified is to use the net tangible assets (NTA) value.Here I'll explain how you can use this measure to help you identify cheap assets listed on the sharemarket.Net tangible assetsNet tangible assets measure what the company's assets are worth. It takes all the assets of the company minus liabilities and then removes the things that are difficult to value such as goodwill, patents and trademarks.It is often referred to as book value or bankruptcy value.Prices to book valueThere are some companies at the moment which are trading below the book value. That means that the share price is worth less than net assets.The prices to book (P/B) value measures the share price to the net tangible assets per share. Usually this number is greater than one, reflecting that the share price is worth more than what the net assets of the company are worth. Recently, because of the dramatic downturn in the sharemarket you have markets discounting the value of assets. That means that they could be a potential bargain.Benjamin GrahamThis price to book ratio was a favourite of the father of value investing, Benjamin Graham.Benjamin...more
Positive belief has a direct impact on everything we do in Telephone Sales. It will increase our motivation to achieve higher sales results and our drive to perform well on each telephone sales call. It will improve our skills and abilities with each...more
We now know that building Customer Loyalty is key to success in any organization.The philosophy was first articulated by Fredreich Reicheld who studied the relationship between three factors - customer satisfaction, customer loyalty and profits....more
This special report was created at the urging of many of my clients and students. Apparently there is a myth that as a Realtor you must do everything yourself. Too often there are articles written touting the super strength of a Realtor who is being...more
In these changing political times, for those seeking secure locations for offshore protection of assets, Panama remains a top choice.In a letter to the OECD after the London G-20 meeting at which Panama arbitrarily, (along with Switzerland and a...more
The SBA or Small Business Administration loan is a significant source of financing for small businesses. Typically, SBA loans are used to finance plant construction or expansion, to purchase equipment, and to provide working capital. Under the SBA...more
As the credit crunch has drastically effected the domestic removal industry, more and more local removal companies have branched out into the European removals market to keep their vehicles moving. Whilst they may be experts in moving you locally; do...more