In the world of investing there are three people I have enormous respect for. I admire them because of their ingenuity, their record for making people money and the fact that they are each different from each other. The first is of my grand dad's generation: he is the the world most famous and most successful investor - he is often called the Oracle of Omaha, Warren Buffet. His style? Value Fundamental approach. The next is Peter Lynch - creator of the world most succesful families of mutual funds: he is the ultimate stock finder and he is of my dad's generation. My own generation have our Warren or Peter, his name is Jim Cramer! Yeah Jim represents the ultimate growth guy - savy, quick yet intensely dedicated to the fundamentals.
This week, I beat Cramer to his game. You heard about CVS on here first, and this week we are three points up on the recommendation, and you know what? Cramer was on it on Thursday. I don't claim to be better than Cramer, but I claim to be close enough to read his mind before he sends the faithful to make us some money! CVS is a 6 months hold for me not a trade, the greying population is a plus for this stock ride it up until 34 after which you will sell and wait for a mow back..I'll keep you posted.
The market was very interesting this week and the month. It started rather crummy- but a deluge of good earnings reports on Thursday and Friday lifted the market. I am up on CVS, MSFT, and even what? Google! Anyway, it is earnings week again next week- I can't predict what will happen , all I know the earnings will decide the dance steps of the market. An interesting article to help all beginners in the market can be found here - enjoy!
Sunday, January 29, 2006
Tuesday, January 24, 2006
Put Your Money Where Your Mouth Is: INV 101
Investing is very easy! Hush! Most people consider savings in other words a very difficult proposition. But I have learnt that it is not very hard afterall. In fact it is easy. Often, it is making that momentous decision of just sitting on the sideline to join in the game that is hard. Once you are in, and you are just the common competitive homo-sapien then you always just want to beat your benchmark (which for me is S & P 500- more of that later). Indeed, if you want to beat that benchmark then you have to understand the market, the tricks and then you get hooked. Investing to you then becomes a piece of cake- it becomes just another visit to the mall, a dope you buy from the side of the street. And you see stocks you just wanna buy! That is why my task today is getting you to leave the fence and get into the market.
There are many gospels out there to 'would be' younger investors telling them to be invested and why. But consider this: On an average day I wake up - I brush my teeth and take my bath and get ready for work or school (Procter and Gamble -PG). I then get into your my car and drive to work(ExxonMobil and American Int. Group :AIG). After the day is over I stop over at your local retail store to pick up some food (Walmart- WMT) and then go home to cook. If I need more money for the week I may stop at my Bank (Bank of America- BAC) and head home. After cooking, I settle down to enjoy my meal and doze away with my TV on (Time Warner -TWX). The point in telling you all of these, is that i own every single stock I just mentioned! You see, I am patronizing myself each and everyday of my life. I am here to stay whether you like it or not- while you might be looking at me thinking I am spending, I am only beefing up my bottomline cos I am a part owner of these companies. You see? Do you want to be a consumer or a owner? I mean I don't really mind being both.
Having said this, when and how much do you need to invest. What all writers agree about is that the time to start investing is now. Your next hundred dollars can break the jinx. Open a very simple investment account with either Sharebuilder or BuyandHold and you can invest for as little as $2 per stock - in fact with that hundred dollars alternatively just buy two companies and you are on your way to success. What companies do you buy ? You might ask- that question we shall tackle next time. So long - will see you shortly.
**Additions: Here is a very interesting article on saving, investing and priorities- check it out
There are many gospels out there to 'would be' younger investors telling them to be invested and why. But consider this: On an average day I wake up - I brush my teeth and take my bath and get ready for work or school (Procter and Gamble -PG). I then get into your my car and drive to work(ExxonMobil and American Int. Group :AIG). After the day is over I stop over at your local retail store to pick up some food (Walmart- WMT) and then go home to cook. If I need more money for the week I may stop at my Bank (Bank of America- BAC) and head home. After cooking, I settle down to enjoy my meal and doze away with my TV on (Time Warner -TWX). The point in telling you all of these, is that i own every single stock I just mentioned! You see, I am patronizing myself each and everyday of my life. I am here to stay whether you like it or not- while you might be looking at me thinking I am spending, I am only beefing up my bottomline cos I am a part owner of these companies. You see? Do you want to be a consumer or a owner? I mean I don't really mind being both.
Having said this, when and how much do you need to invest. What all writers agree about is that the time to start investing is now. Your next hundred dollars can break the jinx. Open a very simple investment account with either Sharebuilder or BuyandHold and you can invest for as little as $2 per stock - in fact with that hundred dollars alternatively just buy two companies and you are on your way to success. What companies do you buy ? You might ask- that question we shall tackle next time. So long - will see you shortly.
**Additions: Here is a very interesting article on saving, investing and priorities- check it out
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