How to Invest and Make Money Like Warren Buffett

How does Warren Buffett keep beating the S&P 500 and defy the laws of gravity to keep his sprawling empire and compounding machine―Berkshire Hathaway afloat? What are the secret ingredients of his investment style, that make him one of the richest men on Earth? In this Buzzle article, we try to unravel the Buffett mystique. Advertisement The Unbeatable Compounding MachineFor more than 49 years, Warren Buffett's Berkshire Hathaway has grown at a rate of almost 25% every year. To put things into perspective, if a 60 cm rose bush were to grow at this rate, within 37 years, it would grow to be as tall as the Empire State Building!To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. What's needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework. ―Warren Buffett

The most successful student of value investing guru―Benjamin Graham, pin-up boy of investment managers, the Oracle of Omaha, the unyielding CEO of Berkshire Hathaway, and the grand old sire of American capitalists, Warren Buffett is one of the few billionaires who made a substantial chunk of his early fortune, through pure investing.

The Key Investing Principles of Buffettology
While he started out as a diligent follower of Graham's value investing approach, aimed at snagging companies trading at prices lower than their true value, over time, Warren Buffett has absorbed and assimilated a range of ideas from other master investors, like Philip Fisher, and developed his own. While a legion of analysts have tried to dissect Buffett's approach to discover the holy grail of investing, very few have been able to replicate his success.

The master investor, who bought his first stock at the age of 11, doesn't just buy securities now, but prefers buying controlling stakes in companies, assimilating them into the huge sprawling empire that is Berkshire Hathaway.

Berkshire Hathaway performance compared

Ergo, it's not possible to emulate him, as he casts such a huge shadow on the markets today, that his investments sometimes turn out to be self-fulfilling prophecies due to the high volume of funds he pours in. Even he made his share of mistakes, had missed opportunities, and lost a lot of money in the markets. It is just that he has avoided blunders and learned from his mistakes through clear introspection.

The growth of his company, which has been beating the S&P 500, almost continuously for decades, is testimony to the sound investing principles and mental framework that has helped him choose winners more frequently than others.

Warren Buffett

To sum up Buffett's approach in the simplest of words, he goes after undervalued stocks, with strong financial fundamentals and growth prospects, holding them for the long term. He completely ignores the brouhaha and speculative trends of the market and entirely bases decisions on the study of a company's balance sheet, market impact, and future potential. The prime imports from his approach have been outlined in the following lines.

Invest in what you understand
How do you beat Bobby Fischer? You play him at any game but chess. I try to stay in games where I have an edge, and I never will in technology investing. ―Warren Buffett

Go after your strengths, and invest in what you understand. Big suicidal mistakes in investing occur when decisions are made without a complete understanding of how a business or a particular industrial sector works. Buffett has always restricted himself to investing in businesses that he understands. A prime example is one of his biggest early bets and successes―Coca Cola, a company whose business model and future potential was rightly gauged by him.

In the 1990s, he avoided the Dotcom bubble, by eschewing Internet-based businesses, whose future prospects, he did not fully comprehend. Because he bases his decisions on understanding an industry, instead of relying on hearsay, he has been insulated from the speculation-driven insanity that periodically grips the markets. While this approach has also led to him missing out on a few good opportunities, it has largely saved him from large-scale losses.

Ergo, invest in your circle of competence, it being the set of business sectors whose products and services, as well as market value, are comprehensible to you, through personal experience. Only in this circle, can you have the conviction to make future predictions. While this may not always lead to winning bets, it will protect you from the pitfalls of speculative (the-quest-of-the-next-big-miracle) investing.
Go for companies with highly favorable long-term growth prospects

In the short term, the market is a popularity contest. In the long term, the market is a weighing machine. ―Warren Buffett

Investors like Buffett amass great fortunes as they stay invested for the long term in high-growth companies and have the dexterity to spot them early. All companies start small and the few who can identify their long-term value and prospects at that stage, to invest in them, ultimately reap big returns. When considering a stock, think of it for what it is―an opportunity to buy a quantum of ownership in a business. Evaluate its future potential and financial fundamentals, as well as market demand for its products and services. Invest only in companies that have good long-term growth prospects.
Buy undervalued growth companies

The best thing that happens to us is when a great company gets into temporary trouble . . . We want to buy them when they're on the operating table. ―Warren Buffett

Once in a while, opportunities open up, when innovative companies with high growth prospects get into trouble due to temporary setbacks. Consequently, their stock value suffers, and Buffett has always capitalized on such opportunities where the company is trading at a 20% to 25% discount price of its true book value. He has been known to be greedy and opportunistic during such times, when the market has been fearful about a stock and has earned rich dividends from the recovery of the stock price, in the long term.
Choose companies with stable, consistent, and predictable earnings

Our approach is very much profiting from lack of change rather than from change. With Wrigley chewing gum, it's the lack of change that appeals to me. I don't think it is going to be hurt by the Internet. That's the kind of business I like. ―Warren Buffett

The value of a stock is dependent on the projection of its future earnings and if they are highly predictable, it makes for a smart bet. A company whose products and services have enjoyed perennial demand and established large-scale market exposure, is bound to do well. Such businesses are the sure-things of the stock market, which may not necessarily post spectacular results in any quarter, but will keep the profit meter ticking steadily.

An example from Buffett's portfolio is Gillette, a market leader in personal care products, primarily including men's razors. Since the 1980s, it has been a household brand with a proven market share. It is known for constant innovation and predictable market earnings. In 1989, Berkshire Hathaway invested US$600 million in Gillette, an investment which grew to US$850 million within two years, besides earning a handy US$52.5 million dividend yield. When Procter & Gamble bought Gillette, Berkshire Hathaway being the largest shareholder, earned a handsome profit of US$645 million.

Another such example is See's Candies, a manufacturer of candy and chocolates, whose products have been in high demand, throughout United States. Berkshire Hathaway's US$57 million investment in the company has earned more than US$1.35 billion, in the ensuing years.
Go for companies with candid, trustable, and capable management

Over the years, as his style of investment has evolved, Buffett, along with his closest business partner, Charlie Munger (Berkshire Hathaway's Vice-chairman) have also focused on looking at the quality and leadership capabilities of the management, provided all other financial parameters check out. A capable, trusted, and candid management is bound to make better decisions to widen the growth prospects of a business.
Opt for companies with a strong economic moat

Market leaders are set apart by the strong competitive advantage (economic moat) that they hold, over their competitors. It may be their level of product innovation, acquired monopoly in product or service demand, a sector pioneer's head start, or any other advantage that keeps them sufficiently ahead of all competition. Buffett has always believed in investing such companies that have a strong protective moat.
Look for high return on equity

A parameter that is closely monitored by the master investor is the return on equity (ROE), quantified as Net Income/Shareholder's Equity. It quantifies the net income earned by the company, for a small percentage of shareholder's equity. It measures the benefit generated for the invested shareholder money. A consistently high ROE for more than 5 years, marks a company to be a safe bet for investing.
Pick businesses with high and stable profit margins

Another parameter that's part of the Buffett scanner is the profit margin (Net Income/Net Sales x 100). To qualify for investment, the profit margin needs to be consistently high and growing for the past 5 years.
Focus on a few good bets

Wide diversification is only required when investors do not understand what they are doing. ―Warren Buffett

At the other extreme of non-diversification is over-diversification. Buffett believes in focusing on a few good bets for the long term and doesn't believe in spreading himself too thin or over-diversifying. By focusing on a chosen few stocks that have passed his extremely detailed scanning test, he increases his holding in them over a period of time to bolster his bet. This also lets him invest in a high volume of shares of a company, in a single go, acquiring a significant, and at times, controlling stake in companies. The idea is to go all in and back a few chosen bets, after detailed analysis. Of course, this strategy requires a lot of conviction in your choices, and at times, the willingness to be a contrarian, when conventional market wisdom thinks otherwise.
Focus on parameters identifying undervalued investments

There are many other parameters that are a part of the scanner employed by the master investor. These include: Low Price-to-Book Ratio: This ratio (= Stock Price/Total Assets - Intangible Assets - Liabilities) allows you to screen stocks that are trading below their book value, a.k.a. undervalued stocks, which are bound to appreciate to their true value, in the future. Low Price-Earnings Ratio: This important ratio (= Market value per share/Earnings per share) can only be used to compare companies within the same sector, to separate those with high earnings, trading at relatively low prices. This parameter should never form the only screening criteria, as not all low P/E ratios indicate undervalued high-performance companies. Low Price-to-Sales Ratio: This parameter (= Stock price/sales per share) can be indicative of an undervalued stock. It determines the value of each dollar earned in sales per share, for a company. Again, this indicator shouldn't be used in isolation, but only as part of a broad analysis of the company's financial fundamentals. High Dividend Yield: The yield (= Annual dividends per share/Price per share) can separate out companies that pay out high dividends for every investor dollar put in. In totality, these price multiples can together identify undervalued stocks, a rare breed that a value investor like Buffett prefers buying, as they have a high probability of appreciation compared to other stocks.
Be patient, hold on, it gets better

Our favorite holding period is forever. ―Warren Buffett

Lastly, the core principle of Buffetology―once you find a good thing after careful analysis, hold on to it, as with time, it only gets better. True investors are in it for the long run. Speculative day trading not only incurs high transaction costs and taxes, but also doesn't add up to substantial profit, compared to a well-thought out long-term bet. Think like the owners of a business when buying a stock, and your approach to the whole process is bound to change.
Timeless Wisdom from the Oracle of Omaha

Lastly, some timeless quotes to live by, from the Oracle of Omaha, that should be pinned on every investor's work desk.

Risk comes from not knowing what you're doing.

Never depend on a single income. Make investments to create a second source.

If you buy things you do not need, soon you will have to sell things you need.

You only have to do a very few things right in your life so long as you don't do too many things wrong.

Do not save what is left after spending, spend what is left after saving.

Author: Omkar Phatak

INVEST IN A RIGHT

The saving does not always increased saving does not always correspond to increase of the way investment.

Author: ruve joy anoche

How To Invest Like A Pro

Ideally, investors try to buy a stock when the price has reached a support level (a level at which the price is as low as it will go) and sell the stock when it hits a resistance level (a level at which the price is as high as it will go). This is easier said than done. Most investors end up missing out on a continual rise by waiting for a stock to plummet first, or sell way to early by underestimating how high the price will go. In this article, we will focus on the two most popular strategies that you can use to invest without having to worry about market timing.

Dollar cost averaging (DCA) is an investing technique intended to reduce exposure to risk associated with making a single large purchase. According to this technique, shares of stock are purchased in a specific amount on a specified periodic basis (often monthly), regardless of current performance. The theory is that this will lead to greater returns overall, since smaller numbers of shares will be bought when the cost is high, while larger number of shares will be bought while the cost is low.

An example of DCA would be as follows: If I want to buy 1,200 shares of IBM stock using DCA, then I might decide to purchase 400 shares of IBM per month over the course of the next three months. Hypothetically, during month one, the price of IBM may be $105 per share, and then it might drop to $95 per share during month two, and then rise to $100 during month three. If I bought all 1,200 shares during month one, I would have cost me $105 per share. But, by spreading the purchase over a three month period, I managed to buy IBM at an average price of $100 per share.

The primary drawback of using DCA is that you may not be maximizing your overall return. If there is an indication that a certain stock is currently undervalued and might shoot up in price, you would actually make less money using DCA than if you had bought all the shares in the beginning before the price skyrocketed. So, it is not always a winning strategy to spread your purchases over a period of time.

Value averaging, also known as dollar value averaging (DVA), is a technique of adding to an investment portfolio to provide greater return than similar methods such as dollar cost averaging and random investment. With the method, investors contribute to their portfolios in such a way that the portfolio balance increases by a set amount, regardless of market fluctuations. As a result, in periods of market declines, the investor contributes more money, while in periods of market climbs, the investor contributes less.

Here is an example of DVA: I want to invest in Yahoo using DVA. For the sake of argument, we will say that Yahoo is currently $10 per share. I determine that the value of the amount I am going to invest over the course of 1 year will rise, on average, $1,000 each quarter as I make additional investments.

If I use DVA, I invest $1,000 to start. If, at the end of the first quarter, the share price has risen to $15 per share, that means that the value of my investment is now $1,500, which means I will only have to invest $500 at the start of the second quarter in order to bring the total amount of my investment for the first and second quarter to $2,000. So, I am investing less as the stock price increases.

Author: Jim Pretin

Why Invest Yourself

An SMSF, or 'self managed super fund' is a situation in which a group of less than five people have pooled their resources together in order to make investments that can generate a good amount of profit. The way this works then is simple – the group of people will each agree to pay in a certain amount over a certain duration of time, and will then decide together how they want to invest their joint capital in order to try and increase their bounty. The idea for many is that self managed super funds provide a kind of pension, and many intend to draw the money out of their self managed super funds once they reach retirement. However at the same time an SMSF can be used for many other things, just like any bank savings can.

 The question is, why use self managed super funds, or why invest money yourself in a self directed way, when banks already exist to do all that for you with no effort on your part? There are several answers to this question. First of all, by using self managed super funds you are able to reduce your tax. The reason for this is that you get tax reductions on self managed super funds that don't apply to other savings accounts. In order to benefit form this reduction though, your SMSF needs to meet various criteria. This means you need to have five or less members, that none of the members must work for the other trustees, and that all members be trustees of the fund.

 Even without those tax reductions however, an SMSF is already a good move and a great way to invest money. One of the main reasons for this is simply that investing in an SMSF will allow you to make all the decisions regarding your investments and to decide how you want to invest.
This means that you have a lot more idea where your money is going and it means you can invest in such a way that you are supporting causes you believe in and/or acting on hunches and beliefs you have regarding what would be a good buy. Apart from anything else it's also a good learning experience and gives you a lot more idea how banks work and the economy in general.

Disadvantages of Investing in an Apartment

While investing in an apartment can have its own share of advantages, here are some possible demerits too that you should consider, before choosing to invest in one. The Brighter SideAccording to data from the National Council of Real Estate Investment Fiduciaries, for the period between 1984 to 2004, apartments provided a higher total return to investors, than the average for all other types of property.With the current boom in real estate, many people are keen to invest in an apartment. Apartment investment has numerous advantages, making it one of the most desired investments in the real estate market. A steady cash flow is perhaps the biggest draw. You receive a said amount of money from your tenants, and depending upon the number of flats in the apartment building, this can be a significantly big amount. What's more, investing in an apartment can also fetch you good profits when you sell it, due to a steady appreciation in its value. You can also save taxes when you sell an apartment and invest the money into acquiring another property.

However, every investment has two sides to it, and an apartment is no different. Let us have a look at the major drawbacks of renting out an apartment.

Demerits of Investing in an Apartment
1. Financing is Not Easy

It's important to know that apartments are sold as a whole, which means quite a big amount needs to be invested. Add to it the fact that, lenders and financial institutions are not very eager to sanction loans for commercial properties, and financing the property can prove to be difficult. Financial institutions offer mortgage loans (albeit at high interest rates) once you have paid at least 20% of the value as down payment. However, the monthly mortgage payments are quite high, and can dig a hole in your pocket if you don't find tenants sooner than later. To avoid such hassles, investors choose to invest in a group and share the expenses and liabilities.

2. Property Management

Most investors who invest in apartments find it difficult to manage the property. An apartment can have several issues, including maintenance issues, repairs, etc. So, investors hire a third party or a property manager to manage the administration and maintenance of the apartment. While tenants collectively bear the monthly maintenance cost for the apartment, unexpected expenses can come up once in a while, and then it is the owner who has to pay up. Also, if you're on a tight budget, the additional cost of hiring a property manager may discourage you from seeing it as a feasible option.
3. Dealing with Difficult Tenants

If you're lucky, you'll have clients who pay the rent on time, and are more than willing to follow the terms and conditions mentioned in the rental/lease agreement. However, almost every investor has had an experience with a difficult client in their careers. Add to it, the current economic condition, and you know what to expect! If the tenant fails to pay the rent for a particular month, it means additional expenditure from your end towards payment of mortgage. Also, eviction of the tenant can be troublesome in certain cases, when the tenant simply refuses to move out of your apartment. In such a scenario, the only option left before you is to take legal action against the tenant, and it can take some time for the court to pass a judgment.

4. It's Not a Liquid Investment

Author: Mukulika Mukherjee

Invest in a Recognized Web Design Company Online

If you wish to invest in services that would help maintain your website, consider a recognized web design company. The service should not only take care of its appearance alone, but should be designed to fit the needs of your customer, such as the user friendly feature. Know that your customer would not want to wait for more than a minute to have a page open up. He or she would not hesitate but move on to another site to look for a particular need. This is why it becomes crucial to invest in such services that would understand and take care of your need at every stage.

It is important for one to consider the designer�s qualifications and experience, you do not want to be dealing with amateurs. You could ask for samples from the service, a good web design company would ideally offer you one. If you, however, come across one that does not agree to this condition, you should avoid investing in the same. Such samples would give you an idea of what your site could look like. Your website would always represent your brand or firm, you can imagine what a bad site could do to your corporate reputation. Avoid getting yourself in such hassles!

Font size, layouts, background theme, descriptions and other such aspects play a key role when planning out a website. Article or write ups with small fonts are difficult to read. This would certainly have an impact on your reader. A good web design company would take care of this and have the right font placed on your site. Images form another crucial aspect to consider, content alone is never sufficient. This would mean that your website should always have sufficient images to support your content. Your potential customer would not want to look through content alone, images would help them understand your concept better.

The web forms an important platform today, it could be perceived as a meeting ground for people from all walks of life. This would mean that you are able to reach out to your target audience without paying much. All you have to do is invest in a reliable web design company, one that has worked with reputed firms in the past. You need to give your target audience a reason to invest in your services. Know that a good web design company in Mumbai, would make available customer care to help you out with a specific need. This could take the form of calls, live chat, etc.

Author: Dominick Quentin

Small Investment Options

Often, an individual finds himself/herself in possession of small capital or small volumes. Rather than spending such money rashly, choosing to make small investments which have pocket-sized initial investment, is a better alternative. A person with the intention of investing has to consider a few things or decide his objective of investing. According to his/her needs he/she can invest long term, meaning for a longer period and lower risk, or invest small. The term 'small' conveys two things, small amount of money, or a small time period, which possibly extends for 12 months, or even a few years.

Features to Consider

Now, when it comes to the features and specifications of good, small and short-term investments, first thing that you need to consider is your convenience and your requirements. In the investment sector, there are countless different types and subtypes of investments. The 3 primary features that you need to know are: return over investment, recurring annual investment amount and lastly, time period or life span of the investment. Apart from those you can consider the following features: Invest and Forget: Now this is one useful feature of small investments. There are some investment options wherein all you need to do is put in the money that you want to invest and forget about it, then, upon its maturity or expiry of time period, one can enjoy the returns. Recurring Annual Investment: On the other hand, one can also choose, the investment option where in you would have to invest a specified amount every year into the option. Now the recurring annual investment is to be treated as a liability as you need to compulsorily invest the said amount into the option, in order to keep it alive and get back the appropriate returns. Return on Investment: The Return On Investment which is also known as ROI, this is the total amount that you would receive back. The ROI is calculated by subtracting the total amount of investment from the total amount received (total amount received - total amount invested). You may also calculate a percentage rate of return on investment to get better overview of the returns which you are going to receive in due course. Time Span: In some cases you would also need to consider the time span and total amount which you would have to keep invested into the option as a unit and compare it with the other investments. Apart from the aforementioned features you can also check some other features such as the provider of the investment option, your own future financial planning and its compatibility with the small investment option which you have chosen, etc.

List of Small Investment Options

The following is a quick list of some of the really good small investments which you can make as of today. A very quick overview of the significant pros and cons, and some of the really good features of the options have also been discussed.

1. Government Bonds and Other Treasury Bills
One of the best ways of stowing away small amounts of money for shorter time periods is into treasury bills and bond. Treasury, bills, notes, bonds, Treasury Inflation-Protected Securities (TIPS), I Savings, EE/E Savings are some of the best channels, most of which require about only $100 minimum investment. The advantage of such an investment option is that you can pay off the investment and wait till it matures, whereupon you can enjoy the returns. Some of these bonds and State government bonds and municipal bonds are some similar investments.

2. Common Stock, Corporate Bonds and Debentures
There are three types of contributions to the capital of a company. Common stock, corporate bonds and debentures are some of the common ones. All the three can be traded freely, and bonds and debentures also have a certain maturity or expiration dates upon which a certain accumulated interest is also paid off as a return on the same. The bonds and debentures are perfect investments, all you have to do is invest into them and wait for the returns. On the other hand, stocks or rather shares are the investments where you need to keep a tab on the prices of shares in which you have invested.

3. Systematic Investment Plans and Collective Investment Schemes
The Systematic Investment Plans (SIP) and Collective Investment Schemes (CIS) are professionally managed plans, such as mutual funds wherein you need to invest small sums of money periodically in the fund. In case of SIP, the amount that is to be invested, is not specified or mandatory, in fact for certain years, one may not even invest anything. The Collective Investment Schemes on the other hand have a certain mandatory investment is to be invested every year.

4. Roth IRA
Individual Retirement Accounts are probably the best accounts to invest your money into. The IRA can be opened in prominent banks and also in financial institutes and there is not mandatory minimum limit on the amount that can be invested into it. The IRA account is tax-free and it usually has an upper limit.

5. Bank Accounts
Banks offer countless deposit accounts where money can be deposited in any amounts, subject to upper limits and interest can be accrued on them. These accounts offer an interest rate which ranges from 5% to even 10% in some cases. These sort of accounts, are usually deposit-and-forget kind of accounts that offer returns upon maturity. On the other hand, there are also certain types of accounts wherein one needs to have a certain type of recurring payments throughout the time period of the account till maturity.

Author: Scholasticus K

Discover The Best Way To Invest Money With A Very Little Risk

Invest is the word to express act of investing or laying out funds or capital in an activity with the belief of profit. Investment is the assurance of something additional than money, time, energy or effort, a plan with the prospect of some valuable result, this job calls for the investment of some hard thinking.

In wide terms there are four major investment points cover how you complete most financial objectives, these investment objectives are important because positive products and plans work for one purpose but may produce poor results for another objective, it is quite possible you will apply a number of these investment objectives at the same time to accomplish different objectives without any disagreement. Let's observe these objectives and see how they are different, capital approval is concerned with lasting growth. This strategy is most well-known in retirement plans where investments work for many years inside a qualified plan but investing for capital approval is not restricted to qualified retirement accounts.

If your goal is setting up to hold the stocks for several years, you are satisfied to let them produce within your range, reinvesting payments to purchase more shares. A classic approach employs making normal purchases. You are not very worried with everyday variations but maintain a close eye on the basics of the company for adjust that could affect continuing growth.

At the time of investing, you are essentially betting at least to a certain extent and it is not likely to recognize the result until the betting game is finished. Then only you will come to identify whether you're success or failure. There is nothing definite about investment, in order to benefit from investments you make and need to have a good investment strategy so that you can be a winner most of the times. Nearly everyone keeps thinking that investment policy involves a lot of work but this is not fact. Investment strategy is about investing your money in varied investment so that you can get to your financial goals within a preset period of time. Instance, if you think about investing in stocks of electronic companies. Each type of investment has separate investments.

It is fairly easy to get confused with all the person investments that are available when conducting a research on the different types of investments. Though your investment strategy as to be such so that you can benefit to the highest while taking into account your investment manner and risk tolerance. Risk tolerance refers to the amount of capital you might be ready to invest without feeling the touch. Investment method is about either being conformist or aggressive.

Author: Ranju Kumar

Long Term Investments

You can easily invest your money in a way that is very safe, that a decent return over a long period of time will show.

First look at bonds. There are different types of bonds you can buy. Bond's are similar to certificates of deposit. Rather issued by banks, however, are bonds issued by the government. Depending on the type of bonds you buy, your initial investment may double over a specific period of time.

Investment funds are also relatively safe. Mutual funds exist when a group of investors together to make their money from stocks, bonds or other investments to buy. A fund manager typically decides how the money will be invested. All you need to do is find a reputable, qualified broker who handles mutual funds, and he or she will invest your money, with money from other customers. Investment funds are a bit riskier than bonds.

Stocks are another vehicle for long term investment. Shares of stocks are essentially shares of ownership in the company you are investing in. When the company does well financially, the value of your stock rises. However, if a company does poorly, your stock value drops. Stocks are also riskier than mutual funds. Even though there is a greater amount of risk, you can still purchase stock in healthy companies like G & E Electric, and sleep at night knowing that your money is relatively safe.

Investment Requests and Distributions

Dynamism of the requests and distributions appear to be common currents for developing investment market, under the conditions of free competition. Possibility of realizing these currents din real economical reality depends on the quality of the market monopolization. Under the conditions of reducing competition, when the elements of the market essentially lose their flexibility, it appears on the face of tendencies.

Analyzing of the discussed currents means appearing forming and consisting mechanisms of balance at the investment market and also action of the factors conditioning changing of the investment requests and distributions.

Factors of the investment requests. Leaning upon wide theoretical and practical researches provided in the western countries we may conclude, that the investment request is characterized by frequent changing and it is formed by numbers of complexes of factors, among which we may separate macro- and microeconomic ones.

An important macroeconomic showing influencing upon the investment requests is the volume of national production. It gives rise to the growth or reduction of the investment requests under other equal conditions. Changing of accumulations of people and cash resources also work in this direction. Herewith, not absolute sizes of these showing, but their conformed meanings: the equality among accumulation and usage within the bounds of the used national product are of conclusive importance.

It is known, that in the market economy they consider savings to be the part of income not used for needs. They are sources for the investment resources. The size of the real resources, which are in the economy at every concrete stage of its development, depends on the fact what priorities make basement to the distribution of the production – current usage or accumulation.

Changing of the norm of savings and investments. Changing of the norm of savings influences essentially upon those ones, which are in progress in the structure of social product. Reducing norms of savings gives rise to the growth of usage and reduction of the investment level. That is the reason for capital exclusion overcomes investments. This ruins balance in the economy. Reduction of savings is also followed by the reduction of the volumes of production, investments and usage. Recovering of other balances on other technological level takes place.

Increasing norm of aid gives rise to another script of economical development, which is characterized by degradation of the usage level and growth of the investment one. Increasing investments gives rise to the accumulation of a capital in the industry after some discussion. The level of accumulation and investments are being increased until achieving optimal meaning from the point of economical firmness. This provides higher level of usage with the help of increasing the volume of savings.

As the experience of the developed countries shows, that they used to achieve high level of average live-stock income when they used to direct important part of social incomes towards savings while realizing structural transformation. There is quite firm positive relation between the share of final product used for investments and that of average live-stock income.

Distribution of incomes of people among savings and usage provides analogue influence upon dynamics of the investment. A well-known statement of J. M. Kains about increasing savings together with increasing received income hasn't been proved by statistic researches provided in this sphere. Conclusion about absolute size during usage and distribution of incomes on savings are shown in the works of J. Duisenberg and F. Modillion.Growth of investments is achieved while increasing share of savings in incomes. Herewith, the role of savings, as investment resource depends greatly upon the influence of such factors, as "increasing preference of cash, development (insurance, social insurance) of those institutional savings, basic part of which are not under the disposal of enterprises interested in capital".

Factors influencing upon the investment requests. The expected rate of inflation influences upon the investment requests. From the most common point of view, fastening inflation rates devaluate those incomes, receiving of which are expected from the investments. Inflations also influences negatively upon the volume of investments with numbers of directions, in the way of impeding economical growth in the long-termed aspects, with the help of reducing processes of widening accumulation and production, devaluating industrial funds of every functional form, inflation tax of profit, also by outflow of cash resources to the sphere of circulation from that of production, reducing real profit and savings, by decreasing the capacity of native market and others. That's why, growth of inflation rates and inflation expectation hinter activation of investment activities and looses the stimuli of widening investments.

Formation of the investment request under the conditions of market economy is related with the functioning of financial market, which supports the movement of investment capital and also profit made out of the invested assets.

Financial credit system forms basic capital of the investment requests by accumulating separate investment savings. In such case important role is played by the banks, which may use not only savings, but also cash resources being in circulation and emission. Conjuncture of stock and credit markets defines conditions of the investment placements and influences upon the volume of the investments. With the help of incomes made out of investments, which turn into the dividends and percents at the financial market, further production of potential investment request, which is realized in the way of reinvestment, takes place.

Percentage rate and investments. State taxation and percentage policies influence essentially upon the dynamics of investments. Their regulation appears to be the lever of the state reaction at the investment request. Reduction of the profit taxation under the equal conditions gives rise to the growth of the share of accumulation used for investments.

Loan percentage rate defines the value of the loan resources for the investments. Growth of the percentage rate strengthens motivation of savings and at the same time reduces and makes the investment unprofitable. While falling of the loan percent, investments appear to be more profitable, that's why reduction of loan percentages rate gives rise to the growth of investment and on the contrary. Herewith, the fall of percentage rate, as a factor of activating investments, has its own borders, as at the definite stage of this fall economical agents prefer to save money in more liquid cash form (J. M. Kain's the Theory of Liquidity), and thus they widen outflow of resources to the sphere of security speculation. This provokes a problem of optimal definition of the percentage rate under the given period, as an excessive fall or growth of percentage rate gives rise to the loss for the investment activities. Thus, the influence of percentage rate upon the investment requests is not completely similar.

Norms of profit and investments. Definition of the influence of percentage rate upon the investment requests might not be complete without comparing it with the norms of the expected profit. Herewith, it's is to be noticed, that not nominal, but real rate of the percentage rate plays essential role for making investment conclusions, as the factor of inflation spoils real orienteer. While comparing loan percentage rate with the norms of profit it is possible to receive undesirable results.

It is to be remarked, that the profit plays double role in the investment activity. It may be discussed as an investment sources and, at the same time main goal of investing. Modern researches, which are related with the salvation of difficult problems of mathematical formalizing of the level and dynamics of the investment request, also manifesting definite basic parameters of the investment requests, prove the existence of definite relation between the profit and investments. For example, according to thw analyzing provided by the economical consulting counsel under the USA president, the most important macroeconomic factors influencing upon the dynamics of investments are:

-      Net profit and depreciation assignments calculated towards gross domestic product;

-      The norm of profit towards depreciation assets (calculated by conforming total profit to the depreciation assignment and foresee changing of the paid loan percent with the size of the depreciation assets by the current restoration prices);

-      Profit norm at the share capital by calculation (calculated with conforming net profit to the waste restoration value of basic capital with the current prices);

-      Market price of the emitted shares towards restoration value of the assets (calculated by conforming total share capital to the waste restoration price of the assets with the current prices).

Investment functions and profit. Foreign researchers obtained definite investment functions by depending on the problems of analyzing, where one of the leading parameters of the investment changing are net profit, the dynamics of the profit norm or expected size of the profit. Investment functions may be represented in the following way:

Investment functions (6.1) and (6.2) characterize dependence of net investments to the volume of the ones of earlier period, accumulated basic capital and the size of net profit. According to the research goals, it is possible to fill them and leading such data into the consistence of parameters, as percentage rate at the long-termed loans of the banks.

In the investment functions (6.1) and (6.2) a special place is occupied by the parameter of basic capital accumulated in the economy, which are leaded into the investment equations of negative relations. It expresses the processes of accumulation and surplus accumulation of a capital during the economical cycle and their relations with the dynamics of the profit norm. This mechanism is expressed in the following: growth of the profit norm activates investment request and the growth of net investments that, in its turn, fastens the process of increasing basic capital. The growth of basic capital after the termed structure starts influencing in direction of overcoming profit norm that, in its turn, reduces investments and thus decelerates increasing rates of the basic capital. This reduction leads further separate growth of the profit norm in the economy that gives rise to the development of the following cycle. Thus the mechanism of investments in the capital provides generating of working conjuncture cycle and it makes one of the mechanisms of positive loopback.

Investment function (6.3) shows the model of investments, which begins from the size of the expected profit. They use data of stock-exchange quotation of the share rate of the companies for measuring expected profit. It makes current valuation of the future flow of the corresponding company incomes on the basis of stock-exchange data of securities. The difficulty of consisting aggregated data of stock-exchange quotation of the company shares gives conditions quite narrow sphere of using the given investment function – on the level of separate firms.

The norm of expected profit belongs to those factors, which influence upon investment request on the microeconomic level. We must also ascribe expenses of realizing investments, expectations, changing in technology and others to it.

Norm of the expected net profit is of significant importance in the system of microeconomic factors. This is conditioned by the fact, that exactly profit makes the motivation for encouraging realization of investments. Investors provide placement of their sources when they expect, that the profit made out of the investments overcomes their expenses.  The higher is the norm of net profit, the more is the investments request. Herewith, investment will be profitable only in case, when the expected norm of net income overcomes real rate of percents. Attracting loan resources loses its conception.

The enterprises compare the norm of expected net profit with the loan percentage rate either during using own resources. According to V. Repke, they invest profit in own firm when the level of profit made out of the investment appears to be higher during the loan percent. Otherwise they will be placed at the capital market.[1]

Thus, percentage rate is the criterion of investment effectiveness. Effectiveness of the investment project must not fall below the loan percentage rate. The percentage rate, which makes basis for evaluating the objects of capital placement of the capital of investment assets, does another important function. I. Fisher characterized percent to be the means for "actualization" of every other income, as the method of evaluating every income in time.

Other factors influencing upon the investment request. Following factor influencing upon investment request is the expenses for its realization. They foresee this factor during calculating the norm of the net profit expected from the investment project. The growth of expenses reduces the norm of the expected net profit and on the contrary. Herewith, as the important parts of the investments are of the long-termed character, they foresee time factor as well. In whole, the more are expanses and terms for their expiation, the less is the level of investment request.

Expectation of the industrial persons, who lean upon following requests, the volume of selling and predictions of profitableness also influence upon the volume of investments. Profit made out of the investments will depend upon the growth of these data. Herewith, the groth of optimal expectation gives rise to the growth of investment requests.

The largest profit is made out of the investments in the innovative production, which guarantee reduction of the expenses of enterprise, improvement of the production quality and growth of the expected norm of net profit. That's why changing in the technologies makes the encouraging factor for the investment requests.

Thus, investment request is formed by the influence of the factors of various kinds and directions, which define their flexibility and dynamism.

Formation of the investment distribution has numbers of peculiarities. From one side, as the distribution of commodity, it is conditioned by such basic factors, as value and, also, not valuable determinants: expenses, fulfillment of technologies, taxation policy, expectations, the level of competition and others; from another, investment distribution is discussed to be specified distribution of commodity, as the investment commodity differs for its ability of making income. This defines characteristic peculiarities of the factor, which is being formed by the dependence upon the level of profitableness.

The norm of profitableness and investments. The norm of profitableness makes basis to the values of financial instruments, which support the movement of real capital. Market price of financial assets shows the quality of attractiveness of the placed sources in the investment commodity.

Percentage rate on deposit in the banking system, the size of which defines the home industry flows, influences essentially upon the investment distribution. Herewith, stock-exchange market and that of the loan capitals makes significant terms for stimulating investment distribution.

As during definite consisting of the investment distribution investment request is oriented towards the profitable assets, we conclude, that the volume and the structure of investment distribution influences upon the volume and structure of the investment request. Herewith, investment distribution is basic factor defining the scales of functioning of the investment market, as it gives rise to the changing of the existed requests on the investment commodity. The mechanism of loopback is not expressed so far. It appears only under the conditions of independent competition.

Achievement of the balance between investment request and distribution is possible only in the total scales of the investment market. Their equalization in the marketing system takes place only in the total scales. Working of the mechanism of the balanced prices doesn't characterize only independent competitive market. This mechanism needs investment commodity and changing of prices on the capital on the basis of balancing request and distribution until there is dynamic balance at the investment market, i.e. until they achieve balanced prices on the investment capital and investment commodity and also synchronization of decisions about their sale and purchase.

The Mechanism of balanced prices. Influencing of the balanced prices upon investment market reflects the specifics of the investment commodity. As we have remarked, this is ability of making profit by the investment commodity. Striving for making more income with fewer expenses makes basement to the making decisions by economical subjects about investments. During definite structure of investment distribution the investors will prefer investment commodity, which guarantee maximal norm of profit at the invested capital under the conditions of minimal risk of investments. High market price of the investment commodity, which is conditioned by its profitableness, makes the impulse for directing important mass of the investment capital in these objects of investments. Relocation of the investment capital, in its turn, widens investment request on distribution of the given commodity that gives rise to the effect of rising price and the effect of increasing distribution under other equal period of time. While increasing distribution of the given investment commodity the market mechanism gives rise to the fall of their prices. That is why investment capital outflows to the more profitable spheres of the investment activities. Finally, the discussed process will be finished with dynamic balance at the investment market.

Herewith, balance under the conditions of pure competitive market means that according to the comparison of the expected level of he loan percentage rate and marginal effectiveness of the capital, decisions about investments give rise to the optimal distribution of the planned investments according to the perspectives of growing profitableness.

Thus, this balance is an ideal economical system, which is characterized with joint proportion of the investment resources and their usage, an optimal realization of economical interests of the subjects of investment activities.

Structure and reality of the investment market. The structure of investment market in the reality is far from the ideal model. Absence of pure competition reduces the dynamism of investment request and distribution, which is displayed only in the face of tendencies, also reduces possibilities of balancing them and, relatively, fixing prices at the balanced level. Potential participants of the investment activity have not equal possibilities at the investment market. They have distinguished possibilities for receiving investment commodity per market price. Large oligopolistic investors are in more advantage situation, then those, which are rivals to each-other.

Thus, investment market in real economical practice doesn't play ideally the function of optimal distribution of investments. Though, this doesn't exclude the need of abstract modeling of economical processes, as exactly this gives rise to the displaying of essential relations and currents, define conditions of balances of those elements, which make the totality of economical phenomenon according to the law of free competition.

Balance at the investment market appears to be partially macroeconomic one. Herewith, it also is essential condition for common economical balance. For example, in the well-known model of J. Hicks "ISLM" ("investments-savings-liquidation-money")the balance at the investment market is the same as the balance of commodity market. That is why this model gained the name of the model dual balance of commodity and money markets.

The model "ISLM" reflectsessential relation between investments and money markets. This relation, to our mind, is the most important peculiarity of the investment market.

It leans upon usage of total parameters for investments and money markets as basic macroeconomic characters of these markets. This is percentage rate and the volume of social production.

The balance at the investment market is achieved in case of equality of investments and savings. As we have already exclaimed, investment volume is defined by numbers of factors, though they state the relations to be researched during the economical dependence not by the totality of variables, but by functional unity of just some of them (this totality is considered to be the paribus of cetera).

They use Vsp (the volume of social production) and Pr (percentage rate) to be the endogenous variables of macroeconomic factors influencing upon investments. Remaining factors are considered to be the exogenous variables. In such case investment formula is represented in the following way:

Where, Iev is the part of the investments defined by exogenous variables.

IS curve expresses combination of the volume of national production and percentage rate, during which investments equal to the savings.

Financial mediators and capital market. Correlation of transformation of the investments and financial marketdefines essential role of this latest in functioning of the investment market. In the first place, it is reflected by the fact that the request of enterprises and firms appear in the financial resources of basic and turnover capital form. In this case distribution of investment commodity turns into the cash-credit form. It is represented in the form of family industry and the savings of firms, which are accumulated in the banking system and are granted by definite percent.

Following peculiarity of investment market is also evident. This is the existence of developed web of those financial mediators, which make realize connection between sellers and buyers of the investment capital. Financial mediators gather separate savings of the family industry and firms in the significant mass of the investment capital, placement of which takes place later between the users of investment.

The existed investment potential is concentrated in the institutions of banking system, which have special possibilities for using traditional cash resources and credit emission. Placement of the capital mobilized by financial mediators may be provided in the form of loans, emission of shares, purchasing bonds or other securities and so on.

Equality of a dividend and percent and investment request. The profit, received from this or that financial assets is divided into dividend and percent. This depends on what form they represent – industrial or loan. Wholly they reflect the norm of profitableness of the produced capital valuables. The equality of dividend and percent shows the structure of the investment request, its distribution between firms and banking system. This equality has the form of market price (rate) of financial instruments at the financial market.

For movement of capital valuables financial instruments fasten reaction of the prices on the changing of the norm of profitableness and thus they guarantee fast outflow. The size of their market price appears to be the indicator of the working conjuncture as a result of dynamism of investment activity. Thus, the mechanism of balanced prices at the financial market turns into the sharper forms of displaying.

Essential peculiarity of the investment market is the role that is played by the percentage rate on it. As we have shown, the size of percentage rate gives rise, in the first place, to the size of the savings of family industries attracted by the credit system, and from another, the norm of profitableness of investments. They evaluate even own potential resources of the firms with the help of percentage rate: if the expected profit is higher, then the percentage rate, they direct it to the investments, in other cases they place them at the financial market – in the form of deposits, purchasing securities and so on.

According to the said above, effective functioning of the investment market may be provided only under the conditions of developed financial market and firm banking system. It this case market foundation of percentage rate, equal conditions for investments in regional and branch aspects, attractiveness of long-termed investments and the level of regulated inflation make important conditions for interaction of investments and financial market.

Marketing mechanism cannot provide these conditions. State regulation must conform to the economical currents on the a basis of which market mechanism reacts on changing conditions, it must foresee prediction of various results of the complex of influencing activities, create conditions for realizing potential possibilities of market mechanism in the form of antimonopoly activities.

Author: lamara qoqiauri

Iraqi Dinar Investment

Iraqi Dinar was introduced after the removal of Saddam Hussain from his chair. Once again it was opened to the investors with a new image in international market. Now it is possible for an individual to purchase and sell it from anywhere over the world. The people are aware of investing in new Iraqi Dinar that can return a significant growth. Nevertheless before such investment some points are to be considered with gravity.

Since Iraq Dinar is always a long time investment we should have a vision mainly on two factors. The changes in global economic condition as well as the economical and political situation of Iraq as dinar valuation are directly related with these two factors. As far as it is the question of international market we have a very clear scene in front of us. After the economical crisis period it is coming out of the recessional condition in a slow pace. Iraq is on the right path and the growth is significant.

It is overall tendency of the investors of Iraqi Dinar to earn fabulous money out of the investment. Considering that issue it can be said that the investors should have to wait for some more time to invest in Dinar. A close monitoring of the actual growth of Iraq is important and that should be felt in all levels.
 The increase in the dinar is related with international currency market and there is every chance of growth of Iraqi dinar as and when Iraq could access in digging the deposits of crude oil. However these are only predications and great speculations. It is better not to take that much risk with so much speculation. However as we consider the previous records of Kuwaiti Dinar and present development of Iraq we can expect a substantial return. 

Another important point should be considered about the authentication of the currency. The new Iraqi currency has some security indications. The investors must check before buying the notes if that are having all authentication marks. There are some good examples of cheating with the investors by supplying invalid notes earlier. For information the new Iraqi Dinar are having a unique serial number in Arabic. The denomination value can be seen in the notes opposite to light. In addition to a horse’s head is also incorporated with a water mark in the note.  Finally it is better to take the consultancy of a professional person who is handing with such investment especially Iraqi Dinar. It can help the investor to buy the authenticated note. 

Making Money With Mexico Investment Property

Many people today are considering buying a second home or vacation home in Mexico. Buyers often only want to spend a part of each year living in the home, since the financial opportunity definitely exists to make enough rental income – and then some – to cover the property's annual costs.

As a result, owning a purely hands-off Mexico investment property is an extremely desirable addition to any portfolio. You can generate income while the property appreciates in value, which is certainly not the case now, or any time in the near future, in the US. But how can this be accomplished?

The first factor to consider is tourism figures. Mexico's Riviera Maya, for example, which lies along the beautiful Caribbean coast, attracts large numbers of visitors, giving you a large pool of potential renters since it is a highly desirable vacation destination. More and more tourists are opting to visit here, staying in homes or condos, rather than having a canned resort experience. And consider this: Mexico's occupancy rates are averaging 65%, even in this harsh economic downturn!

Beyond the numbers of tourists and rates of occupancy, you of course need an attractiveMexico investment property that is in a desirable location. Amenities are key to potential renters and to your success in renting. The type and quality of the amenities your property offers will guide renters to you. Your furniture choices will even make a difference and it is an absolute must to find an excellent property manager; one who will take care of any necessary duties including the cleaning, bill paying, maintenance and repairs. With everything in place, you can expect rentals for 18-24 weeks of every year.

Growth in Tulum is also creating an urgent need for short-term accommodations. Right now, there simply is not enough supply and that gives you an excellent opportunity for profit.

Another alternative of truly hassle-free investing is with a condo-hotel. Your investment in a condo-hotel unit gives you access to a beach resort and the units are fully furnished, often with a guaranteed rental return from the resort hotel. This investment opportunity is completely operational with no work required on your part. You won't have to find renters; there are no condo fees, utility bills, repairs or maintenance to worry about. It's all taken care of, so you just relax and receive your quarterly ROI.

Investment Properties Mexico can guide you through the variety of options for owning vacation property in Mexico, providing you with a home-away-from-home and a significant profit on both your property investment and rental returns. 

Author: Investment Properties Mexico

Is it Wise to Invest in Software during the Recession?

An article for the HR and Payroll specialists. A review of the current economic climate and why it could be beneficial to invest in HR and Payroll Software.

We, the public, are in-updated with the news of the global recession and the bleak economic factors that coincide every day. Emphasis towards the ever rising unemployment rates and the plummeting profits leaves those at the top with the decisions to make whether to think short term by making what could be knee jerk reactions by cutting costs and laying off the workforce leaving them vulnerable in certain business sectors. Alternatively, the CEO�s could adopt a strategic mindset and invest for a potential long term gain. By employing of smarter spending philosophy companies can actually bolster their competitiveness in the marketplace and also enhance financial stability.

It is all very well saying that there are two viable approaches to tackling the most goliath of downturns, as companies will be bankrupted and go under but for the some companies it is a great opportunity to increase productivity by getting the most out of an apprehensive workforce, investing in business management software or even streamline their business models by outsourcing areas such as Pay and Bill, HR and Payroll and Credit Control.

Company software is a major asset and may offer a future competitive advantage when vying for increased market share when others are unable so it may be worth bucking the trend and investing in the endless vine of software out there, whether it is software for the HR and payroll department, or credit control/finance and accounting software.

Companies are in the recession together, as businesses form a symbiate circle due the nature of the economy, and with this in mind, it is a great opportunity to negotiate the price of outsourcing software�s, increase of new technologies which helps form of competitive advantage and special tax dispenses on computer software for purchases in 2009.

A time of economic downturn immediately suggests that companies have cut back in business capital expenditure, thus B2B companies are actively seeking immediate sales to support their cash flows, so as a company actively seeking to make the most of the recession, there is no better time than now to negotiate for software and advances service afterwards, as the software company will offer more attention and responsiveness to the newly acquired key accounts.

Due to the recent events, there are special dispensing bills in the Section 179 according the IRS website that will enable tax rebate for companies purchasing computing software. By taking the benefits of tax rebated software, it will leave your firm in good standing for when the recession turns around and your competitors are left behind with dated technologies, offering your company a competitive advantage in that area.

A slow economy may dictate the rate in which investment is made, yet if there is a strategic plan set in place in which software is updated and monitored then the transition from the old to the new technology can be done in a financially sustainable way, and if your HR and Payroll software needs updating for example then consider outsourcing a software consultant, as their skills are in less demand and are taking on more SME roles at the moment.��

A recession can be viewed as the end of a financial era and the beginning of a new one and it�s important to have a strategy set out to come out with an increased market share in the new era as competitors have petered out due to lack of investment as not identifying that productivity and efficiency of all operations to be improved and modified in order for survive and future successes.

Author: Jimmy Ireland

how do I Invest in Real Estate?

How to Invest in Real Estate

Investing in real estate is very popular among middle upper class segment. Though mortgage crisis has taken away some of the excitement as it used to be, sudden surge in property prices, and various other economic factors.

However, real estate is very much unlinke the other investments like shares and bonds. It is more of active investment. For example running a rental property or fixing up a house repairs that requires a lot of work than buying a simple house.

Understaing investment in real estate isn�t as easy as it looks. There are lot of hidden things that will consume lot of your time and energy. Even before you go out hunting, you will have zero down the kind of investment you want to make. There are basically two ways for you make money

- By renting out the property.

- Through appreciation of the property�s value.

A very notable example of profiting from rentals was noticeable with the mortgage crises. Rental prices may not always fall in a recession (and may even, whereas property value can drop sharply.

One other investment model would be to totally disregard and focus on finding a property where real estate values have gone so down where it could give you more rental money than the mortgage.

Naturally, most properties will rely on both methods in order to generate a return on your investment, but you should consider both factors when analyzing an investment property.

Investing in Real Estate � Negative Factors

Not only you will be required to analyze the means through which property could generate revenue, you may have to go through every possible option through which it can give you better revenue.

There are some prerequisite before you buy a property in india. And they are inspector, agent, a lawer for a normal home. In case if you are buying a resale home, you should consider the renovation charges at times it requires a lot of work before they are deemed �livable�

Don�t get the mistake of looking it through some rose colored glasses. Never fall in love with a place, its not your home but investment that is supposed to bleed you returns.

How to Invest in Real Estate � Getting a Loan

Unless you have the money to purchase a property up-front, you will need to get a loan for your investment property. Getting a loan for your investment property is much, much harder (especially after the mortgage crisis) then it is for a first-time home-buyer. Banks know investors will default on their investment loans before they default on their own homes and risks are adjusted with that in mind.

Why Invest in Real Estate?

Now that you know how to invest in real estate, you might wonder why would anyone invest in real estate? It is a lot more work and is more complicated than the stock market, and you have to spend a lot of time to manage your properties.

How to Invest in Real Estate Conclusion

Author: Taalib Durden

November 4 Investing For the Future (Christian)

When the storm has swept by, the wicked are gone, but the righteous stand firm forever.  Proverbs 10:25


Be certain that you invest with a bank or savings and loan protected by the FDIC or a credit union insured up to $100,000.  If worse comes to worse, the government will print the money to pay what it owes.

Taken from the Investing for the Future calendar by Larry Burkett.

Author: Marsha C.

Investment in You

This week for me has been very much a week of growth both in knowledge as I find myself wanting to develop my own personal knowledge, new experiences by going back into the gym enviroment and also observation by stepping out what sometimes feels like the fitness bubble and having a good look around at what seems to be happening in the industry right now

I never in a month of Sundays thought I would ever want to slow down, ok, ok I don't mean grab my pipe and slippers just yet! I actually mean slow down, re-educate and evaluate what I am teaching. I love fast pace classes and still thrive off of the buzz but like I mentioned in the USP article so many of us teach these sessions with ever growing quality its becoming hard to stand out from the crowd so here is a question: When did you last study something or train in something because YOU had a passion for it or was interested in it? NOT because of work, money or because the trend is taking you to follow the majority? Ready for some honesty... for me it has been years! A bit more honesty ... The reason I asked myself this is because I had lost 'that' passion I started with over 12 years ago.

So if you are still sat looking puzzled as to where you think I'm heading with my Jackie rant keep reading I promise I will make sense soon.

Wake up call

4 months ago I started working for a big chain as a fitness manager I and have recently found myself falling into the companies ways looking at budgets, sales etc which is my job but something has felt missing. As always I need more than one thing to focus on so I have recently begun work with a company to consult and set up a fitness camp for Joe Public.
All im going to say is WOW it has stoked the fires in my belly (can you tell I'm a country bumpkin lol)and I have loved every minute because its brought me back to where I began ...

Little story

People who are close to me in the industry know my love is for education and also the work I do with clients to help build their fitness and self esteem. I was an overweight and very unhealthy child/teenager until I found fitness and how it made me feel. This was the reason I started in the industry, I was amazed at how the body which is an amazing thing changed. This sparked my thirst for knowledge and all I have wanted to do is share my passion.

Back to the present

So how many of you feel ...

You are doing your true passion?

You have maybe fallen into a system?

You are teaching things you have to?

That maybe you could develop and earn good money from your passion?

You could develop your knowledge, but feel there are not enough hours in the day?

Crunch time!

Due to the credit crunch I have watched clubs start to slowly take classes in house and all my freelance friends run themselves ragged with sleepless nights and teaching any classes available. No one seems to be thinking about the instructors that have for years taught with a passion even classes they didn't want to teach and sometimes investing their own money into the product. If at any time is the right time this is when we should go back to our passion and make money from doing what we love and the knowledge we own.

So...

We are first point of contact we do know what clients want

We work with all the different age groups, skill levels and adapt to all needs

Use your power of knowledge you know a lot more than you think and you have more business, networking and teaching skills than you realise so dig deep. What would you expect from a business and someone that calls themselves a professional?

We are all guilty of this believe in yourself remember we all teach in different style, at different levels with different personalities your are a brilliant instructor with the potential to be even greater.

Treat with care ...

Treat yourself with care! If a client was to tell you they were suffering with Disturbed sleep, chronic fatigue, low immune system, poor appetite, stress etc what would you say? ...Need I say more?!

We are only human and as instructors you are your business so invest in your mind and body. Read books, articles, do courses/workshops they don't need to cost the earth library books are free! It's a 100 times easier to sell a product you are passionate about and that is in good working order.