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Casual Articles - 3 Components Needed for Beating the Market
Joy to the world, Joy Global has come. As the title indicates, there is a lot to be optimistic about when regarding Joy Global (JOYG) as your next potential investment. With the worldwide advantage, strong fundamental and technical standings relative to weaker sentiment regarding competitors, I believe purchasing a few shares as your gift for your holidays will make you and potentially your loved ones all the more joyous.Looking at recent economic data, there is no question that the United States economy is slowing down. While the depreciated effect may be hindered by optimism in other areas signaling a soft landing, with increases in the unemployment rate, slowdowns in sectors such as the housing and automobile industries, coupled with the fact of a depreciating dollar, there is absolutely signs that the US is lagging in terms of growth juxtaposed to other nations. However, such relative stability does not necessarily need to present itself as a bad indicator to the equity market. It is true that in the next few months you will not see similar gains and record breaking historical highs for virtually every stock, but there are still some companies such as Joy Global which will take advantage of the current economic situations. Located in Wisconsin, according to Yahoo Finance* “Joy Global, Inc. engages in the manufacture, servicing, and distribution of mining equipment
Component # 2 - right method
Many investment methods are flawed, period. This is especially true for many short term oriented trading methods. Many mutual funds preach long term holding for their fund investors, but the fund managers themself engage in short-term trading like mad men. Performance of many momentum based growth funds or tech funds looked horrible for past 5 years. The reason for that is very simple: the investing method itself. Growth investing or short term trading sometimes can be very speculative and dangerous.
Wall street has famous theory that "the more risk, the more reward". Therefore, yeah, growth funds are risky, but if you want to
All too often in presentations those giving a presentation to the decision-makers will in fact talk too much. The decision-makers have summoned the presenters to discuss with them their proposal to help solve a problem of the decision-makers. The decision maker or decision-makers did not call upon the presenters to give them a three-hour lecture on every single aspect of the situation or scenario.The decision-makers are well aware of all aspects of the situation and have only asked for certain information. Overloading or confusing the issue will not help the presenter’s case and it often upsets the decision-makers because they feel their time is being wasted.I always found it amazing as the CEO of my company that people giving me presentations and advice would assume that I am an idiot. In fact, often the more I listen to the presenters I would become disgusted on how little they really knew and how their opinions were based on nonfactual information and limited knowledge of the subject. This use upset me that I was going to be paying so much money for someone that knew so little.Sometimes I got to the point that I would tell him exactly what I wanted. Tell them I don't want them to think just do exactly what I say and do not deviate at all. If you are giving a presentation to a decision maker and they say something similar to that, then it is becau
2004 is over, now we are in 2005. This is time to seriously look at performance of your personal investment, such as mutual fund, or individual stocks holdings, etc. Does your fund beat index last year? Does it beat index over past many years? How are you doing with your own stock investment comparing to SP&500 index?
If the answer is "great", well congratulations. You have your own way of beating market and making big money already.
If the answer is "not so great", or "failed to beat index". You have got a problem. You need to look deeper into the investment strategy you used or your fund used. You can not pretend that there is no problem when in fact there IS a problem. I know there are just so many people out there that can not face this. Let's face it, Almost everyone, include myself have ego that we JUST do not want to admit failure or mistake or any hint of it. Here comes the 1st Component below.
Component # 1 - ego, gut, perseverance
Value investing or investing in general is all about psychology, ego, attitude, and gut.
Investing is serious business. It is our money, our life savings at stake. Sometimes biting the bullet with pain to trash the ego is worth the pain if that makes you more money. Ego is one thing that we must avoid in stock market investing business in order to make big money ahead. You can not hide, you have to compare your own performance of past many years to SP&500 index. Of course, I am not saying that you should be comparing every month. It is OK to make some mistakes, here and there for certain months. However, it is NOT ok if the performance year over year has been bad. You have got to change if that is the case.
Although ego is something you should all avoid, perseverance is something you must treasure if you want to be that marathon winner. When you finished your due diligence and you have calculated your risk reward ratio and intrinsic value, go for it and stick with it. Do not be scared of negative comments or negative press, even if the source is from a famous author or from your close family. Value investing is lonely business. I know this for years. I have been criticized over past many years for numerous reasons, for not beeing able to sell at top, for not beeing able to buy at bottom, for picking a risky bankruptcy related stock, or for buying a low float small cap stock , blah blah. You know what? in the end, my investment performance is better than most of folks out there in the market, including those "pro" mutual fund managers.
I have got comments like this before: "Blast, I like your method, I know you are making big money. But, I can not do as you are doing. I can not hold. Especially bad news hit, I just have to sell, and my performance sucks".
Well, if he/she do not have gut to hold like I hold during bad time, she/he can not make big money with value investing. One can be all right in paper, right with value calculation, right with timing of purchase. However, if you can not fight against panic during minor negative news, you are out in the investing marathon.
Component # 2 - right method
Many investment methods are flawed, period. This is especially true for many short term oriented trading methods. Many mutual funds preach long term holding for their fund investors, but the fund managers themself engage in short-term trading like mad men. Performance of many momentum based growth funds or tech funds looked horrible for past 5 years. The reason for that is very simple: the investing method itself. Growth investing or short term trading sometimes can be very speculative and dangerous.
Wall street has famous theory that "the more risk, the more reward". Therefore, yeah, growth funds are risky, but if you want to h
Chances are this article’s title gives you a strong opinion about whether or not to continue reading. You are either in sales and want to understand your work better and therefore very interested, or you are being kind and giving me until the end of this paragraph to convince you to continue, because you aren’t in sales, you don’t want to be in sales, and you don’t see a connection between your work and sales.If you are in the second group, please give me just one more paragraph before you decide, ok?If you think of the stereotypical high pressure used car salesperson when you think about sales, rest assured that isn’t what I’m referring to. Think about this. Do you ever need to persuade others to see your position or take a particular action? Do you ever need people to follow your recommendations? Do you ever benefit in a tangible way when you are able to be more successful in persuading others? If your answer is yes to any of these questions (and I’m sure it is for everyone), then you are in sales – regardless of your job title or how you feel about “salespeople.”So regardless of your experience in or feelings about sales, there are likely things you can learn from the best in the sales field – because we are all in sales.The Model in your MindWith all due respect to the many truly outstanding used car salespeople, the
Component # 1 - ego, gut, perseverance
Value investing or investing in general is all about psychology, ego, attitude, and gut.
Investing is serious business. It is our money, our life savings at stake. Sometimes biting the bullet with pain to trash the ego is worth the pain if that makes you more money. Ego is one thing that we must avoid in stock market investing business in order to make big money ahead. You can not hide, you have to compare your own performance of past many years to SP&500 index. Of course, I am not saying that you should be comparing every month. It is OK to make some mistakes, here and there for certain months. However, it is NOT ok if the performance year over year has been bad. You have got to change if that is the case.
Although ego is something you should all avoid, perseverance is something you must treasure if you want to be that marathon winner. When you finished your due diligence and you have calculated your risk reward ratio and intrinsic value, go for it and stick with it. Do not be scared of negative comments or negative press, even if the source is from a famous author or from your close family. Value investing is lonely business. I know this for years. I have been criticized over past many years for numerous reasons, for not beeing able to sell at top, for not beeing able to buy at bottom, for picking a risky bankruptcy related stock, or for buying a low float small cap stock , blah blah. You know what? in the end, my investment performance is better than most of folks out there in the market, including those "pro" mutual fund managers.
I have got comments like this before: "Blast, I like your method, I know you are making big money. But, I can not do as you are doing. I can not hold. Especially bad news hit, I just have to sell, and my performance sucks".
Well, if he/she do not have gut to hold like I hold during bad time, she/he can not make big money with value investing. One can be all right in paper, right with value calculation, right with timing of purchase. However, if you can not fight against panic during minor negative news, you are out in the investing marathon.
Component # 2 - right method
Many investment methods are flawed, period. This is especially true for many short term oriented trading methods. Many mutual funds preach long term holding for their fund investors, but the fund managers themself engage in short-term trading like mad men. Performance of many momentum based growth funds or tech funds looked horrible for past 5 years. The reason for that is very simple: the investing method itself. Growth investing or short term trading sometimes can be very speculative and dangerous.
Wall street has famous theory that "the more risk, the more reward". Therefore, yeah, growth funds are risky, but if you want to
What Is A Blog?Millions of people are doing it, from CEOs and business owners to stay-home mums and students. I like the definition used by Blogger:"In simple terms, a blog is a web site, where you write stuff on an ongoing basis. New stuff shows up at the top, so your visitors can read what's new. Then they comment on it or link to it or email you. Or not."I think of my blog as my online journal, a place to record my thoughts and experiences and to share them with a few, or with many. It's a lot easier than building a website, and best of all, it's free (if you use free hosting platforms like Blogger or WordPress).Why Blog?Blogging has at least 3 great benefits.An easy way to establish your web presence with minimum cost Unlike a website, a blog is easy to set up, even if you are new to the Internet, and it doesn't have to cost you a cent. (Okay, maybe it might cost you $8.95 a year if you want it hosted on your own server with your own domain name, which definitely looks more impressive than having a URL that says http://yourblog.blogspot.com).Keep in touch with visitors and potential customers easily A blog offers a friendly, unintrusive way of updating lots of people without the hassle of writing separate emails. You can even add it to an existing website to post product or news updates.
Although ego is something you should all avoid, perseverance is something you must treasure if you want to be that marathon winner. When you finished your due diligence and you have calculated your risk reward ratio and intrinsic value, go for it and stick with it. Do not be scared of negative comments or negative press, even if the source is from a famous author or from your close family. Value investing is lonely business. I know this for years. I have been criticized over past many years for numerous reasons, for not beeing able to sell at top, for not beeing able to buy at bottom, for picking a risky bankruptcy related stock, or for buying a low float small cap stock , blah blah. You know what? in the end, my investment performance is better than most of folks out there in the market, including those "pro" mutual fund managers.
I have got comments like this before: "Blast, I like your method, I know you are making big money. But, I can not do as you are doing. I can not hold. Especially bad news hit, I just have to sell, and my performance sucks".
Well, if he/she do not have gut to hold like I hold during bad time, she/he can not make big money with value investing. One can be all right in paper, right with value calculation, right with timing of purchase. However, if you can not fight against panic during minor negative news, you are out in the investing marathon.
Component # 2 - right method
Many investment methods are flawed, period. This is especially true for many short term oriented trading methods. Many mutual funds preach long term holding for their fund investors, but the fund managers themself engage in short-term trading like mad men. Performance of many momentum based growth funds or tech funds looked horrible for past 5 years. The reason for that is very simple: the investing method itself. Growth investing or short term trading sometimes can be very speculative and dangerous.
Wall street has famous theory that "the more risk, the more reward". Therefore, yeah, growth funds are risky, but if you want to
There are so many internet success systems online, and unfortunately, I think that most of them are scams, schemes, or get rich quick programs that will never work. There are myriad systems and big programs you can pay big money to buy.But I think that internet marketing should be easy, and I think that if you have a work ethic, a willingness to work hard, and the savvy to tell the scams from real-live opportunity, I believe you can succeed online in a big way.So think about this – what is the common thread between scams and schemes that do not work. They are all based on not working at all – just sending people money in the hopes that others will send you money. You may think that is oversimplification at first, but give it some more thought. Think about - network marketing, mlm, gifting, traffic schemes – all of those things are based on ideal situations where everybody acts a certain way.But that is not the way the world works.In reality, to make money , you have to buy and sell something. Now, it can be a collection of 1’s and 0’s, like a digital ebook, but it has to have some inherent value. Its value cannot be based on something imaginary, like the hope that you can sell so many of it, and that the people who buy it from you can too.You must sell something physical or digital that has real, intrinsic value.So here’s the
I have got comments like this before: "Blast, I like your method, I know you are making big money. But, I can not do as you are doing. I can not hold. Especially bad news hit, I just have to sell, and my performance sucks".
Well, if he/she do not have gut to hold like I hold during bad time, she/he can not make big money with value investing. One can be all right in paper, right with value calculation, right with timing of purchase. However, if you can not fight against panic during minor negative news, you are out in the investing marathon.
Component # 2 - right method
Many investment methods are flawed, period. This is especially true for many short term oriented trading methods. Many mutual funds preach long term holding for their fund investors, but the fund managers themself engage in short-term trading like mad men. Performance of many momentum based growth funds or tech funds looked horrible for past 5 years. The reason for that is very simple: the investing method itself. Growth investing or short term trading sometimes can be very speculative and dangerous.
Wall street has famous theory that "the more risk, the more reward". Therefore, yeah, growth funds are risky, but if you want to
Every office is different and subscribes to different needs under even a single product category.However, it is not always possible for the managers to track and answer all the minute details of the needs of employees in a comparatively bigger office. We admit that it is not an easy task to operate.Say, an office needs some tapes. Is this much information enough to get the job done! There are, Clear Tape, Double Sided, Drafting Tape, Adhesives and Litho Tape, Masking Tape, Packing Tape, Printed Tape, Invisible Tape and many other verities.Now again we ask- ‘is this much information enough to get the job done!’ These tapes come in various sizes and colours to serve specific needs. Without being to market (i.e. without seeing the product and the new arrivals) how one can decide and define one’s specific needs!The problems get more intense while buying computer accessories, inkjet cartridge, toner cartridge and even photo paper, glossy photo paper or photo printer paper.An office comprising of even fifty or less employees faces huge problems regarding on-time office supplies. It is not always possible to find and recruit a person who is the best to understand the specific needs and choices of every individual and buy from market the ideal product at the best price.To add to this, many companies do not want to burden themselves by stuffi
Component # 2 - right method
Many investment methods are flawed, period. This is especially true for many short term oriented trading methods. Many mutual funds preach long term holding for their fund investors, but the fund managers themself engage in short-term trading like mad men. Performance of many momentum based growth funds or tech funds looked horrible for past 5 years. The reason for that is very simple: the investing method itself. Growth investing or short term trading sometimes can be very speculative and dangerous.
Wall street has famous theory that "the more risk, the more reward". Therefore, yeah, growth funds are risky, but if you want to have more reward, you have to chase risky stuff.
Wrong. The truth actually is "the more risk, the less reward".
I know I am going to be hammered by saying above non-conventional statement. I put out below example to back up my point.
Las Vegas is world famous place for gambling. As an average investor, you visit Las Vegas looking for opportunities to make big money with $50,000 investing capital. Let's assume the theory "the more risk, the more reward" is correct. Where are the riskiest opportunities out there in LV? Of course, Gambling. The potential reward can be astonishingly high. Black jacket, slot machine all have huge potential with 1000% or even more within minutes. You can make millions if you are lucky with your $50,000 principal at slot machine. Actually, it is FACT there are small group of gamblers who made millions in gambling in LV.
However, If you are sensible person, you know the answer. As high as the potential reward can be, the most likely result from gambling with $50,000 principal at LV is WIPEOUT. You lose all your hard-earned money.
If you are a rich investor with multi-million dollar capital looking for investment opportunities in Las Vegas. Certainly casino company stocks and bonds or private offering might be worth looking. However, the sad news is that no matter for stocks or bonds or private offerings, the investment reward is only around 10% to 20% yearly. Well, maybe it is not so sad at all. 10% or 20% of return is certainly a lot safer than gambling. Which reward is better, 10% - 20% return or wipeout?
Well, I know you may want to protest against my above example. Stock market can not be as bad as Casino, right?
It depends. Although casino gambling does not provide real investment opportunities as stock market provides, sometimes stock market can be even worse than casino due to insider manipulation, cheating books, etc. Over the past couple of years, I have heard so many negative news from stock market: Enron, Worldcom, mutual fund scandals, market timing, etc. But I have not heard of news of slot machine cheating by Las Vegas Casino company. Casino does not need to cheat to make money, the odds are against gamblers. Although stock market does offer real investment opportunities for businessman-like investors, stock market is also a place for gamblers to place their bet just like a Casino.
In stock market, the odds are against speculators.
Well, I know you may have more questions. Why Casino bonds or stock offerings or even private offering is only offering 10% to 20% returns?
Casino business is just another business. Numerous academic study has shown that in US history of past many decades, majority of companies can not maintain more than 20% of return on equity over the long run. Many companies are operating under loss, a negative return on equity. If you read books on Warren Buffet method of Philip Fisher method, you will know that they are experts in identifying those small group of high return on equity sto
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