Buy Gold – Gold Coin Investing
November 2nd, 2009
When starting with gold coin investing, what kind of gold should you buy? That is a very common question asked by those starting out in the investing world as gold investors.
Archive
Archive for the ‘Investing 101’ Category
Is Buying Gold Or Silver Limited Edition Mint Coins a Better Investment Than Bullion?
November 2nd, 2009
A gift for the person who has everything! We have all heard this before but can it possibly be true? Giving is better that receiving, true, but in this case receiving is just as good as, if not better than giving.
How to Turn 100 Dollars Into Millions
November 2nd, 2009
For most people, the idea of turning a hundred dollars into a million bucks, much less into millions of dollars, is an alien thing. Unless, of course, turning 100 into a million is a simple operation of adding the appropriate number of zeros, which it is not. However, there are ingenious ways to actually make [...]
Rules to Becoming a Successful Investor
November 2nd, 2009
Rules to becoming a successful investor: i. Investment Goal: This could be summed up as your reason for investing. You have to ask yourself the question “Why do I want to invest?” Because without understanding why you are taking the decision to invest you may not know for how long to hold such an investment [...]
Time to buy a house? Experts who sold at the peak now wonder
August 24th, 2009
A few years ago, some economists and others arguing that there was a housing bubble — often against strong opposition — acted on their instincts and sold their houses. I caught up with a few of them in The Times today. Dean Baker, a Washington, D.C., economist and one of the prominent early predictors of [...]
Why Total Return Is More Important Than Increases in Market Capitalization
June 2nd, 2009
Don’t confuse changes in market capitalization with the return you earn on your investment. Instead, focus on total return – appreciation in the share price plus cash dividends and any spin-offs or other distributions received. The distinction may seem small to some new investors, but the implications are extremely important. There are four primary reasons [...]
The Five Components of an Investor’s Required Rate of Return
June 2nd, 2009
In financial theory, the rate of return at which an investment trades is the sum of five different components. They are: 1. The Real Risk-Free Interest Rate This is the rate to which all other investments are compared. It is the rate of return an investor can earn without any risk in a world with [...]
How to Invest in Stocks
June 2nd, 2009
I notice that a lot of my readers were searching for this basic question of how to buy stocks, so I thought it might be useful to you to synthesize some of the great content that’s been generated over the past several years, putting it in one easy-to-find and simple-to-use location for your convenience. This [...]
“Kiss” – Keep It Simple, Stupid!
June 2nd, 2009
Two of the greatest investors in history, Warren Buffett and Peter Lynch, are renowned for one trick that helped them develop investing records of 20% to 30% compounded over long stretches of time. Buffett summed it up in the acronym “Kiss”, which stands for “Keep it simple, stupid!” When you truly understand what it means, [...]
5 Keys to Surviving a Terrifying Market
June 2nd, 2009
1. Never Borrow Money to Invest One of the greatest economists in history once remarked, “Markets can remain irrational longer than you can remain solvent.” Take the recent case of the most royal of blue chips, General Electric and Berkshire Hathaway. Within the past year, GE has fallen from roughly $40 per share to as [...]