I love how everyone is getting scared the Greece's economy has gone belly up. It has dropped the overall value of stock, but remember it is only temporary. You can actually make quite a bit if you were to find a stock with a moderate amount of volitility and ride it out of the scandal. The market will recover no problem. All things being said and done: you should probably target the small cap stocks for the biggest returns; the growth/blue chips for the steadiest returns.
Buffett said it best, "Be greedy when others are fearful and fearful when others are greedy". There is a ton of money that can be made during the next few days; might as well start shoveling.
Showing posts with label stocks. Show all posts
Showing posts with label stocks. Show all posts
Sunday, May 9, 2010
Saturday, April 24, 2010
Tax Season is Over
Tax season is over and those of you that got their IRS refunds at the last minute probably have holes burning in their pockets from the stimulus plans out there. There definately is a lot of good refunds coming back, but should you reward yourself by spening the money quickly?
I would not condone this behavior. You paid taxes on that money and now it is being given back to you. It was your money to begin with, not the governments. Also if there were any complications in the return they have to be resolved after words so they can be accounted for audits, admendments, and anything else that falls into the tax catagory.
When the smoke truely clears, you have three options to use your tax money: a) you can wait for the smoke to clear and save your hard earned cash, b) you could spend it on something that you want, or c) you could re-invest it. I would go with a combination of either a) or c) or just do c). b) should be covered under the 1 luxury per month plan.
So everybody knows how to save a tax return, but how do you invest a tax return? Well, there are a number of options. There are stocks, bonds, index funds, real estate, and speculative ventures. The most prudent of the 5 when starting out is stocks and bonds. Here is why: stocks can be bought in either small amounts or large amounts and the amount used can be controlled by how much you put into a company. Bonds on the other hand is like an IOU either from a company the U.S. government. You can buy bonds at fixed amounts and just hold on to them and cash them in when they mature. Note that bonds are mainly a long term investments so I would not bother trying to cash them until they totally mature or until you can sell a bond for more than what you paid for it. There are advantages to the bond in the sense that you can sell them at loss and write off the loss on next years taxes.
I would not condone this behavior. You paid taxes on that money and now it is being given back to you. It was your money to begin with, not the governments. Also if there were any complications in the return they have to be resolved after words so they can be accounted for audits, admendments, and anything else that falls into the tax catagory.
When the smoke truely clears, you have three options to use your tax money: a) you can wait for the smoke to clear and save your hard earned cash, b) you could spend it on something that you want, or c) you could re-invest it. I would go with a combination of either a) or c) or just do c). b) should be covered under the 1 luxury per month plan.
So everybody knows how to save a tax return, but how do you invest a tax return? Well, there are a number of options. There are stocks, bonds, index funds, real estate, and speculative ventures. The most prudent of the 5 when starting out is stocks and bonds. Here is why: stocks can be bought in either small amounts or large amounts and the amount used can be controlled by how much you put into a company. Bonds on the other hand is like an IOU either from a company the U.S. government. You can buy bonds at fixed amounts and just hold on to them and cash them in when they mature. Note that bonds are mainly a long term investments so I would not bother trying to cash them until they totally mature or until you can sell a bond for more than what you paid for it. There are advantages to the bond in the sense that you can sell them at loss and write off the loss on next years taxes.
Thursday, December 31, 2009
Quick Response: Kiplinger 2010 Stock Reprt Special
I would like to say this tidbit of stock info is only $4 to get the opinion and analysis of several different pros in the stock game. It actually gave me some new concepts when it came to consider the perfect company to invest in and it crosses over into frugality nicely. There were some consistencies with the stocks I have read up on in the review, many of which discusses the principle in which you should be stock.
One of the things it advocates is search for a company that has little to no debt! The say this is calculated is assets minus liabilities for the duration of ten years. This is textbook Oracle of Omaha bidding. Buffett uses this same principal to weed out the companies with overall negative earnings. For a ten year duration is good to measure the company's debt. The best way according to Kiplingers is to "try to access the this record through publicly traded stock". The ones with privately traded stock will be harder to track their debt.
There has to be consistency in how the earnings are reported. If those numbers zig-zag and fluctuate and there is inconsistencies in the debt reports, there is too much volatility in its earnings ratio.
To buy stocks your overall personal portfolio has to be the same to be able to buy the stock. To buy more stock, you need consistant earnings. To do so it is recommended that you live a frugal life style and invest over 10% per month until you have built a small nest egg. Once you get that nest egg, then you can start investing in a more aggressive manner so as long as you do the research. Without doing research on a company's profile, you are no longer investing; you are gambling. Keep that in mind when choosing stocks for your portfolio and Happy New Year.
One of the things it advocates is search for a company that has little to no debt! The say this is calculated is assets minus liabilities for the duration of ten years. This is textbook Oracle of Omaha bidding. Buffett uses this same principal to weed out the companies with overall negative earnings. For a ten year duration is good to measure the company's debt. The best way according to Kiplingers is to "try to access the this record through publicly traded stock". The ones with privately traded stock will be harder to track their debt.
There has to be consistency in how the earnings are reported. If those numbers zig-zag and fluctuate and there is inconsistencies in the debt reports, there is too much volatility in its earnings ratio.
To buy stocks your overall personal portfolio has to be the same to be able to buy the stock. To buy more stock, you need consistant earnings. To do so it is recommended that you live a frugal life style and invest over 10% per month until you have built a small nest egg. Once you get that nest egg, then you can start investing in a more aggressive manner so as long as you do the research. Without doing research on a company's profile, you are no longer investing; you are gambling. Keep that in mind when choosing stocks for your portfolio and Happy New Year.
Thursday, December 17, 2009
Beating the Market 2009
Overall I did pretty good. I have came out of the market 1,000 give or take than I put into it. I cashed out the WMT a little late, but just lost a little. For those of you that got the AMZN when I suggested it, (November 2008 to be precise) congrats to you guys. I do not think I mentioned it here, but this was perhaps a personal discussion with my Sushi Social crew. At that time I did not have enough to do so, but it is perhaps better to say I should of than shouldn't of. For those of you who did not have the means last year or perhaps are running to the store to buy tissue and a sit-com from not taking my advice there is always next year. Oh by the way, gold was nice to me too ;).
No, I knew e-readers were going to take off when I saw them. Especially with the increased usage of net books. I still am typing on the same Acer Aspire One I got a year ago and it still works the same! It is an amazing little device. When I saw people getting the I-pod touch for reading, it just made sense that there will be a demand for that as a stand alone device. And on the 7th day, the big box companies begatted e-readers! They decided to name their children "Kindle" and "Sony e-reader". It was a matchmade in e-marketing heaven.
People are probably wondering which stocks am I going to get next year. Of course WMT will be in the arsenal as it goes near the 40s. I understand two things: how fast technology moves and retail trends. This is what I pay close attention to. I really try not to follow the news too much unless the stock is at a highpoint and something will cause a market panic and drive it down. I want to get off the train ride because it is going downhill and I just want it to go uphill because my "house" is just past the next "valley". When I buy my ticket I want it to go "downhill" to the point at which risk is low and then "transfer" at "Selling bvld."
Three things I look for is structure of the company, aggressiveness, and image. All this information can be found for free. Buffett said it himself "the best information he has obtained about the market happens to be free". Study the companies before even think of investing a single dime into their servicies. If you do not like anything about the company then you will be wary of the company and too paranoid to even know when to buy and sell. And follow the golden rule: buy low; sell high. While I am not into shorting stocks are doing anything towards asking, I will say that in the future I will probably stick with what works. Investing in stocks work for me, but I will probably go into other ventures in the future. Currently at this moment I am trying to go to Japan to teach English, but that is not to say I will just turn a blind eye to an investment oppertunity.
Now I know that the best marketing wins; so I am not going to say that it was all based on product, but marketing think tanks. Apple was not the first one to come out with a MP3 player, but they are definitely the ones that made owning one the "in thing". Now look at the I-Pod: it is a device that has literally thousands if not million of applications for it, especially in languages. I might have to get one for the various pod casts that supports learning a foreign language since I love them so dearly. I am also impressed with the freshness that is the Flip Mino. I like some of the YouTube videos that are being made with it. Pure awesomeness in my opinion. While the amount I got was perhaps low compared to some investors the important thing is to stay in the black, not in the red.
May 2010 be profitable for all my viewers and thanks for supporting me this year. Your views and comments has kept me motivated enough to keep posting. I will continue to provide more blogs in the future.
No, I knew e-readers were going to take off when I saw them. Especially with the increased usage of net books. I still am typing on the same Acer Aspire One I got a year ago and it still works the same! It is an amazing little device. When I saw people getting the I-pod touch for reading, it just made sense that there will be a demand for that as a stand alone device. And on the 7th day, the big box companies begatted e-readers! They decided to name their children "Kindle" and "Sony e-reader". It was a matchmade in e-marketing heaven.
People are probably wondering which stocks am I going to get next year. Of course WMT will be in the arsenal as it goes near the 40s. I understand two things: how fast technology moves and retail trends. This is what I pay close attention to. I really try not to follow the news too much unless the stock is at a highpoint and something will cause a market panic and drive it down. I want to get off the train ride because it is going downhill and I just want it to go uphill because my "house" is just past the next "valley". When I buy my ticket I want it to go "downhill" to the point at which risk is low and then "transfer" at "Selling bvld."
Three things I look for is structure of the company, aggressiveness, and image. All this information can be found for free. Buffett said it himself "the best information he has obtained about the market happens to be free". Study the companies before even think of investing a single dime into their servicies. If you do not like anything about the company then you will be wary of the company and too paranoid to even know when to buy and sell. And follow the golden rule: buy low; sell high. While I am not into shorting stocks are doing anything towards asking, I will say that in the future I will probably stick with what works. Investing in stocks work for me, but I will probably go into other ventures in the future. Currently at this moment I am trying to go to Japan to teach English, but that is not to say I will just turn a blind eye to an investment oppertunity.
Now I know that the best marketing wins; so I am not going to say that it was all based on product, but marketing think tanks. Apple was not the first one to come out with a MP3 player, but they are definitely the ones that made owning one the "in thing". Now look at the I-Pod: it is a device that has literally thousands if not million of applications for it, especially in languages. I might have to get one for the various pod casts that supports learning a foreign language since I love them so dearly. I am also impressed with the freshness that is the Flip Mino. I like some of the YouTube videos that are being made with it. Pure awesomeness in my opinion. While the amount I got was perhaps low compared to some investors the important thing is to stay in the black, not in the red.
May 2010 be profitable for all my viewers and thanks for supporting me this year. Your views and comments has kept me motivated enough to keep posting. I will continue to provide more blogs in the future.
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