Tag Archives: Investing

3 Keys to Mutual Fund Investing, Find the Best Funds

http://www.moneyshow.com/video/Media_Library.asp?cat=&spk=F7DF7E5BD4DB4197A624BE1333D7369A&scode=013356 Picking the best mutual fund requires more than looking at past …
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Gold, Silver, and Diamond Investing – What You Should Know

Gold, Silver, and Diamond Investing - What You Should Know

Title: Fundamentals of Precious Metals Investing — Plus, an Introduction to Diamond Investing Date: Thursday, August 25, 2011 In this web presentation, FTMDaily Editor-in-Chief Jerry…
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In this video, I am showing you where all the Gold Manuals/ Instructions are located in the Bricksburg Construction chapter. Bricksburg Construction – Gold Manual/ Instruction Locations http://yo…
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Billionaire David Einhorn: Investing is harder than poker

david einhorn poker

NEW YORK (CNNMoney)

Hedge fund mogul David Einhorn plays poker only a handful of times a year and always for charity — but he’s had some deep runs with the best in the game.

In the 2006 World Series of Poker, he placed 18th, good for $ 660,000. He took third place in another elite $ 1 million entry tournament, winning $ 4.4 million.

Einhorn, a billionaire, says poker is for fun, and investing is the tougher sport.

“The investing world is a little bit more multidimensional than poker,” Einhorn said this week on the Thinking Poker podcast.

There are similarities, though. Einhorn said he approaches both poker and investing as if he’s solving a puzzle.

In both, there are things you know: The cards in your hand, a company’s financial statements.

Related: Swedish poker pro wins world title – and $ 10 million

Then there are the things you can have a hypothesis about.

In poker: What is my opponent thinking? How does he play?

In business: What is the agenda of the management of the company? What is the psychology of the other people who own the stock?

“You can develop a strategy based on what you know and what you suspect,” he said.

And finally, there is a range of possible outcomes. What cards will come? What’s going to happen in the world? What’s going to happen in the markets?

Put those ideas together, and you can “solve the puzzle.”

There are some big differences however.

“With poker, you have a resolution of the hand within a couple of minutes,” he said. “Whereas, even if the thought process in investing is very much the same, you’re looking at an outcome that could be 2, 3, 4, 5 years from when you make the original decision. And the mindset related to that is very different.”

In any case, he’s humble about his poker abilities.

Describing one big tournament: “I think I got taken advantage of two or three times, but over three days, that’s not so bad. However, I probably got taken advantage of a few more times that I don’t even realize.”

Wall Street Poker: How 6 top investors fared on the felt

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10 rules for smart investing

Make money

NEW YORK

Bernard Baruch is one of the most successful stock operators in American history.

Starting from scratch in the late 1800s, he built a fortune by navigating the frequent booms and busts that pervaded the stock market more than a century ago.

While it’s true that Baruch was a speculator — not an investor — and has long since passed away, neither of these facts erode the value of his insights for investors today.

In the first volume of his autobiography, Baruch: My Own Story, the then 87-year-old financier dissects the madness of crowds, delves into what is now called behavioral finance, excoriates readers to make investment decisions for themselves as opposed to relying on the opinion of others, and talks about the difficulty of weeding through an onslaught of financial information in an effort to distinguish the signal from the noise.

Related: Warren Buffett Tells You How to Turn $ 40 Into $ 10 Million

Suffice it to say that Baruch was decades ahead of his time when it came to understanding the forces that only recently began to attract serious attention from financial scholars and market commentators.

Nowhere is this more apparent than in the 10 rules of investing that he shares toward the end of the book, which, in Baruch’s own words, “mainly reflect two lessons that experience has taught me — that getting the facts of a situation before acting is of crucial importance, and that getting these facts is a continuous job which requires eternal vigilance”:

  1. Don’t speculate unless you can make it a full-time job.
  2. Beware of barbers, beauticians, waiters — of anyone — bringing gifts of “inside” information or “tips.”
  3. Before you buy a security, find out everything you can about the company, its management and competitors, its earnings, and possibilities for growth.
  4. Don’t try to buy at the bottom and sell at the top. This can’t be done — except by liars.
  5. Learn how to take your losses quickly and cleanly. Don’t expect to be right all the time. If you have made a mistake, cut your losses as quickly as possible.
  6. Don’t buy too many different securities. Better to have only a few investments that can be watched.
  7. Make a periodic reappraisal of all your investments to see whether changing developments have altered their prospects.
  8. Study your tax position to know when you can sell to greatest advantage.
  9. Always keep a good part of your capital in a cash reserve. Never invest all your funds.
  10. Don’t try to be a jack of all investments. Stick to the field you know best.

To be fair, some of these are outdated and/or impractical insofar as the modern investor is concerned. The advice to avoid speculation unless it’s a full-time job, for instance, simply isn’t feasible in this day and age of self-funded retirement; whether the average American likes it or not, saving and investing simply isn’t optional.

Related: Social Security: 5 Facts You Must Know

But far from detracting from Baruch’s other points, this makes them even more valuable. Far too many investors buy stocks without knowing a great deal about the underlying companies. Far too many continue to believe that timing the market is still possible. And far too many miss opportunities for want of a cash reserve.

Indeed, despite the fact that Baruch shared this list almost 60 years ago, its value and relevance have handily stood the test of time.

John Maxfield has written for The Motley Fool since 2011. He has a bachelor’s degree in economics from Lewis and Clark College and a juris doctorate from Southern Methodist University.

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Drink up! Whiskey investing brings huge returns

whiskySavvy investors are buying into whiskey, a market that promises whopping returns.

HONG KONG (CNNMoney)

Tired of investing in stocks and bonds? Try buying a more liquid asset — whiskey!

Investors around the world are betting big on whiskey, which can skyrocket in value and toss back whopping returns.

Since the first whiskey index was formed six years ago, top single malts have risen in value by more than 660% — easily beating the performance of stock markets and other assets. In January, a single bottle of Macallan “M” scotch sold for a record $ 628,205 at auction.

“Whiskey as an investment is being driven by an escalating international demand, combined with an ever-decreasing supply of rare and aged single malt,” said the Whisky Corporation’s Stephen Notman.

Whiskey is a spirit made from a grain — corn, rice, barley — that’s mashed, distilled, and then aged in oak barrels. Some whiskey evaporates through the barrel while aging — called the “angel’s share.” There’s often not very much left when they’re aged for longer periods of time, which is why older whiskeys are more rare and valuable.

Related: The world’s most expensive scotch

For example, a bottle of 1937 Glenfiddich scotch, aged for 64 years, sold for £46,000 ($ 72,000) at a Christie’s auction in 2012. Only about 60 bottles were originally produced.

Experts are convinced that this limited stock of older, rare whiskeys means the market is in for steep, continued growth.

Are we in a bourbon bubble?

Like many other investments, investing in whiskey starts with building a strong portfolio, said Whisky Dog’s Nicholas Pollacchi, an investment adviser.

“It’s not an exact science,” he said. “You’re looking for rarity … [and] it’s about the exact bottle you’re buying.”

While well-known brands can also boost a portfolio, “it’s not necessarily [about] spending … a lot of money, but making sure you understand what’s valuable.”

And of course investors have to be careful not to drink away the investment — Pollacchi recommends buying two bottles if possible, one for your investment portfolio, and one to drink.

Related: Why this champagne costs $ 2,000 a bottle

Investors can also buy into the world’s only whiskey investment fund, launched earlier this year and managed out of Hong Kong.

The fund’s portfolio includes more than 3,000 bottles, primarily from Scotland and Japan. Fund managers have already raised $ 4 million and expect to raise another $ 6 million by the end of this year, and plan to pay annual dividends from profits of bottles sold.

“Our strategy involves focusing on icon brands, silent stills — which are distilleries that have shut down — limited edition selections, and top international whiskeys,” said Rickesh Kishnani, who manages the fund. “We will be buying and selling whiskeys continuously each year, so it is an active trading fund, not a long-term buy and hold fund.”

And while whiskey investing is open to anybody, it’s not exactly the cheapest asset to acquire. Kishnani’s fund requires a minimum $ 250,000 investment, while some private investment collections are worth millions.

Experts say that kind of price tag means that true whiskey lovers are best suited for this kind of investing.

“It’s like buying art; it’s a passion-driven investment, so it’s not for everybody,” said Pollacchi. “If you don’t care about it, I don’t think you should spend your money on it.”

Read next: Broadway hits yield huge returns for investors

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Investing – Create And Update An Excel Database Of Stock Quotes With XLIT

This tutorial will show you how to create easily an Excel database of stock quotes, and how to download stock quotes from the internet thanks to the so amazi…

Lecture 5 covers the use of Stock-Trak website. Describes the origins of futures and how the development of futures options reduced the seasonal price swings…