Thursday 13 December 2012

What to Look For In a Used Car Loan

Many young people could not afford their first car if it weren’t for the availability of used car financing. They just don’t have the cash to buy the car outright. Fortunately, obtaining such financing at very reasonable interest rates is not difficult. You just need to do your research and follow these simple steps.

As you’re paging through the used car ads you’re bound to come across what looks like absolutely fantastic car loan availability from the car dealers themselves. You’ll see zero percent offers, low payment offers that seem too good to be true. Of course, they are! These ads are meant to mislead you, make you come in and apply, and end up getting a loan at 10 to 18 percent over the standard rates! Yes, interest-free offers are available, but only if you have perfect credit. Most used car buyers do not fall into this category. In general, used car loan interest rates exceed those of new cars by several percentage points on average.

One way to mitigate this cost is to get your loan through a dedicated finance company rather than through the car dealership or your normal bank. These institutions generally have more liberal lending policies. Any lender, however, will require proof of the value of the car, and a 20 percent down payment. This is normal and should not be regarded as a suspicious request. Both these regulations are designed to give the lender a safety margin, should the loan go into default. If that happens, the lender’s only recourse is in the collateral, which is the car. Therefore, they naturally have a vested interest in knowing that you did not pay too much for the car, and that at least 20 percent of its value holds even if the default happens immediately. This is actually an advantage to you, as well. There is someone looking over your shoulder at the transaction, making sure it is a respectable deal and price for the vehicle in its current state and condition.

Before you apply for your financing, run a credit check on yourself. This will help you determine what you should be able to afford and should be offered. Sometimes you may realize before you really get started that a used car loan isn’t affordable for you. This could be because of a low credit score, inability to meet the down payment requirements, or insurance concerns. Knowing this going in is important, because online institutions will tempt you with one-day offers. Don’t fall for it! Despite their dire warnings of offer expiration, these lenders will be there tomorrow with another fantastic offer for you! Wait until you are comfortable with the amount and the terms. It is not worth the devastation a loan default can play on your credit history to take it now when you’re unsure you can repay it as required.

Another caution with car loans and any other financial transactions – keep all your paperwork in good order. If you’ve obtained the loan online, print out a copy of everything and store it in a safe place. Never sign anything you don’t understand completely. Ask questions until you understand. Talk to a third-party professional to get a different point of view. It’s your responsibility to protect your own interests. Don’t expect the lender to do it for you. This is the kind of thinking that led to the current mortgage crisis in the United States.

One final piece of advice: As soon as you get your used car loan, look into refinancing it, especially if you weren’t able to get a zero to three percent interest rate. Refinancing sites will usually have calculators on them so you can calculate your total savings. If you can get a percentage point under your current contract, it’s worth it.

Michael Russell


Your Independent guide to Interest Rates [http://interest-rate-guides.com/]


Daryn Weatherman

Tuesday 11 December 2012

Debt Settlement - The Better Alternative For Financial Relief

Debt settlement is a process of providing your creditors with a one time lump sum payment to pay off the debt in total. If you are struggling to make ends meet, this could be one of the best options you have to pay down creditors once and for all. Debt settlement is often called debt negotiation or debt reduction. What can this process offer to you? When you work with a debt settlement company, you may see a much as a 50 percent decrease in the debt you owe to your creditors over the long term.

Debt settlement is a good solution for many people. Here, a debt is negotiated by skilled professionals working on your behalf. They work with the creditors to determine the best way to pay off the debt quickly. For example, perhaps you have a credit card with a company you are behind on. You owe them $5000. Making minimum payments, it may take 20 years or more for you to pay off this debt and that will cost you dearly in the interest payments. Instead, you work with a settlement company. They direct you to make payments to them and they then negotiate with your lenders. Finally, the client agrees to accept a payment of $2800, for example, to pay off the debt in full. The remaining amount is no longer your responsibility to pay.

Debt settlement does hurt your credit score, but before you begin to worry about that, consider the alternatives. Many of those considering a debt reduction program are on the verge of bankruptcy. Bankruptcy will place a black mark on your credit report that will remain there for the next ten years, limiting your ability to apply for loans and purchase property because of the huge drop in your credit score. While debt reduction programs do put a negative mark on your credit, it is a less drastic and harmful problem. And, in many situations, you are likely to see much less of a drop in your credit score than you would with bankruptcy.

Even debt consolidation companies also cause this drop to happen. If you are struggling to pay your debts and you just need a fresh start, settling those debts may be the best option available to you. Many people are not sure if this is right for them. If this is where you currently stand, keep in mind a few of the options you have.

While debt consolidation may be an option to consider, be aware of the fact that a debt consolidation loan is not the same as a debt consolidation program. The first is simply a loan where you are essentially borrowing from Peter to pay Paul and is going to get you nowhere out of your financial problem. On the other hand, a debt consolidation program works in a manner that is very similar to debt settlement, and in fact, both may be handled by the same financial company you would work with.

Speak with a debt negotiator about your situation. Talk to them about the amount of debt you have, the type of debt you have and your ability to pay it off right now. If you are unable to pay off your debt in the next 12 to 36 months in full, it may be time to speak with a professional about these options. Debt settlement is an option, fully legal and acceptable, to getting your debt paid off fully. Not everyone will qualify, but for many, it is the best option possible under the current circumstances. Prior to making a decision, contact a settlement company to find out more about your options.

For more insights and additional information about Debt Settlement as well as finding a variety of resources to gets tips on debt settlement options and companies, please visit our web site at http://www.mybloginfosource.com/debt-settlement


Daryn Weatherman

Tuesday 4 December 2012

Reasons Why American Job Seekers Are Less Competitive

It’s not simply the economy. There are calculated reasons why some American job seekers are not getting the jobs they want and the pay that they feel they deserve. Many of the reasons for lack of success are deeper than a resume that is not 100% or lack of ability to negotiate salary. It has to do with American society as a whole. Here are some of the variables that make the young American job seeker less competitive by the day:

1. Education - The later they graduate college, the worse their writing skills are. Judging by the hundreds of resumes that come into KAS Placement every day, it seems that poor grammar and a lack of ability to express oneself clearly is not reserved for the graduates of lower-tier schools.

Instead, some of the most reputable colleges are letting students graduate without merit (but, with payment, of course) which is diluting our country’s talent pool. Mainly, this is due to colleges feeling they need to spend tremendous amounts of advertising dollars to compete with online schools, then filling this deficit with students who can barely read, but can definitely pay.

2. Impulsive Behavior - Younger Americans have become more impulsive than ever and seem to need everything right this moment – a characteristic that hinders many upon searching for a job.

When dealing with younger job seekers, our recruiters have more difficulty explaining to them that things may not happen the instant they want them to and not to act on that frustration.

While our recruiting firm explicitly explains to job seekers that their resume submissions will be read, but we can’t contact everybody right away, we still see emails in our inbox demanding that we read a resume submitted three hours ago. These types of actions instantly force our recruiters to blacklist the individual because we can’t have that type of behavior going on with our clients.

Since 2005, the aforemetioned behavior among young job seekers has probably increased about 7 to 8x (this is factoring in increased resume submissions year over year).

3. Loss of Entrepreneurial Spirit - Many of today’s younger generation has just about every technological advantage over the older job seeker, but only a tenth of the research and creativity of job seekers with 5+ years experience.

KAS Placement’s website has a section dedicated to recent college graduates. As a test about a year ago, I switched the tone of the main page telling recent graduates that recruiters could not do everything for them, but instead offered them advice on how to find a great job. Visitors rarely returned and frequently exited the page without visiting these “recommended pages.”

The problem is that young job seekers from overseas are willing to do the research it takes to find the right position, as their custom applications and ways to get in touch with decision makers are more unique than going directly to a website and applying. This is making it very tempting for some companies to start sponsoring young job seekers from the U.K. and Western Europe.

The Positive Takeaway

The positive takeaway for many younger American job seekers is that many companies are not going to sponsor overseas workers, thus the competition for great jobs is going to continue to stay domestic, as it were. If a job seeker begins to seriously look at his or her defaults, a simple correction can spawn a great career.

Ken Sundheim is the Founder and President of KAS Placement Recruiters San Francisco Headhunters a sales and marketing staffing agency that helps both U.S. and International firms recruit all levels of sales and marketing experts throughout the U.S. and Canada.

The staffing professionals at KAS Sales and Marketing Finance Headhunters have been around since 2005.


Friday 30 November 2012

Raising taxes on rich won't chill economy

Super investor Warren Buffett, the chairman of Berkshire Hathaway, speaks with TODAY’s Matt Lauer about Cyber Monday sales figures, consumer confidence and the future of the American economy.

By Ben Popken, TODAY contributor

Raising taxes on the rich won’t dampen economic growth and would “raise the morale of the middle class,” billionaire investor Warren Buffett told the TODAY show Tuesday.

Echoing a theme he has stressed often, Buffett downplayed the idea that higher taxes for the wealthy, as proposed by the Obama administration as part of a deal to resolve the “fiscal cliff,” would scare off critical investment for job creation. Republicans argue that raising taxes on people in higher tax brackets would choke off investment and slow the economy at a time when it can ill afford it.

Buffett disagrees. “No, and I think it would have a great effect on the morale of the middle class,” said Buffett, in the first of two live interviews with TODAY’s Matt Lauer. “They’ve had to watch guys like me pay below the rate by that paid by the people in my office.”

Also known as the “Oracle of Omaha” for his investing acumen, Buffett’s views on the economy are widely followed, including on whether we’re really going to go off the “fiscal cliff” of $500 million in tax hikes and spending cuts.

The CEO of Berkshire Hathaway has been vocal on the economy lately, proposing in a New York Times op-ed Monday that there be a minimum tax for the wealthy.

“I’m confident,” said Buffet when asked about how he was feeling about the economy. “I can’t speak for others, but at Berkshire Hathaway, we buy and sell stocks every day. America’s a winner.”

Lauer brought up a recent quote from Honeywell CEO David Cote who told Meet the Press that he and others like him were feeling a lack of confidence in the political process, so much so that the uncertainty was making them keep their money on the sidelines and preventing them from making additional investments, including hiring.

“At Berkshire Hathaway, we’re investing 9 billion in plant equipment, a record, breaking last year’s record. It’s always uncertain,” said Buffett.

“December 6th 1941 was uncertain,” said Buffett, referring to the day before the attack on Pearl Harbor. “We just didn’t know it.”

When asked whether Congress would really enact a strong proposal such as the one Buffett made in his Times op-ed, which suggested setting a minimum 30 percent tax for millionaires, Buffet said, “I wouldn’t be surprised. They’re going to make a deal.”

Now there’s a new Buffett book, “Tap-Dancing to Work” that trace his career through 80 different FORTUNE Magazine articles over the years. If there’s one thing that stuck out from the timeline, Carol Loomis, FORTUNE editor, who collected and expanded the articles for the book, told TODAY, it’s “how consistent he’s been in his thinking. He’s never changed.”

“I couldn’t be more boring,” said Buffett. “I just look at the facts and wherever they lead me, I go.”
Is this the secret to Buffett’s success? Lauer asked Loomis. It’s hard, she said, because other investors “get emotional.”

Buffett is known for finding undervalued companies with strong fundamentals and good management. “It’s simple, but not easy,” said Loomis. “That’s why other people can’t do it. He’s thinking about business 24/7.”
Lauer asked if this book was a goodbye letter of sorts. “What’s it going to mean to the world when he hangs up his investing shoes?” he asked.

Loomis said, “He will be remembered. His role in life will be remembered for the next century. I don’t know whether investing or philanthropy is going to be the lead item. People are going to be reading about Buffet 100 years from now.”

About that retirement… “Got a date in mind?” Lauer asked the 82-year old businessman. Buffett just laughed.

Read a free excerpt from the book Tap-Dancing to Work


Tuesday 27 November 2012

Why Use Social Networking to Grow Your Business?

You’ve all heard of networking right? Most small business women owners don’t ever use it to its full potential. One of the most common reasons is that it’s just one more thing you have to do in your busy day so it goes into the too hard basket, right!

I know I used to do this. With traditional networking, you stand in a room full of complete strangers pretending to have a good time. You go to events, either listen to a speaker, hand out business cards, grab a coffee, or wine (depending on the time of the day!) and walk around and introduce yourself, all in the hope that you will connect with the right people.

Yes, networking can be a nightmare. It can also be a great thing if you get the right environment for you. Networking is all about building relationships and now-a-days I use both online and offline networking, but I get the greatest benefit from online social networking as I can connect with more people in less time. So what is it and how can it benefit you?

The concept has been around for a few years, with MySpace being one of the first non-business sites to be completely set up for social networking. Gradually, businesses began to infiltrate through this and then other sites were born purely for business owners. You can now speak to someone over the internet, or leave messages for someone all from sitting at home. You can get to ‘know’ a person by looking at their profile, what their interests are, and who they align themselves with. All of this information is available for you to read, rather than physically getting out there and asking.

Where are these social networking sites? As mentioned above, there are a few major players in the field, all specializing in their own areas. MySpace was launched aimed at teens putting details, videos and photos of themselves up so they can chat and play games with their friends. Facebook was then introduced later, aimed at the older generations, hooking up with friends from school, adding photos of family and videos and chatting.

People started realizing that with the amount of traffic coming to these sites they could try and use them for business. But then business related sites like LinkedIn, twitter and niche market sites like Business Women Unite started popping up which are purely aimed at the professions, so people started viewing social networking in a totally difference light. They could start building relationships with many thousands of people without leaving their office.

But what are the benefits of joining these networking sites?

They all offer different things but by using these sites you can promote your business to thousands of visitors that these sites get every week which helps generate traffic to your business. You can expand your business by connecting and doing business with people from all over the world. Some of these sites also offer help for small business.

Sites like LinkedIn are based on the concept that someone knows someone who knows someone who knows someone else…and on it goes. They have applied this to business but you can also connect with lost school friends and work colleagues.

Whereas Twitter is different again and you communicate with people through the exchange of quick, frequent answers to one simple question: What are you doing? It takes a bit of getting used to but it’s worth it.

On the Business Women Unite site there are more business related tools such as a discussion forum, groups section, article directory and sections to promote your business. You can use these to connect with businesswomen of all industries as well as use them to ask questions, share resources and get tested business tips plus experts who can give you advice on how to increase your sales and profits, how to drive more traffic to your website and how to create a better business plus much more.

If you have the right strategy and the right approach you can turn a few minutes a day into thousands of extra dollars. Isn’t that worth the bother!

A great place to start if you are a woman in business would be to connect with other small business women owners, just like you. Get your free membership by going to http://www.businesswomenunite.net where you can also get access to articles, tools and advice on how to build a successful business.


Thursday 15 November 2012

Daryn Weatherman and St. Charles Glass and Glazing Inc

Whether it’s a single replacement window you need or you’re considering a major home remodel, no job is too small for Daryn Weatherman and St. Charles Glass and Glazing Inc. Since its inception in 1995, powerful leadership and vision have ensured that St. Charles Glass and Glazing Inc. has become the premier residential and commercial glass company in the St. Louis area.

St. Charles Glass and Glazing Inc. couples their quality products with quick, detailed and custom service. Each job begins with a custom consultation to be certain that the customer’s needs and desires are heard and met. The representative then makes recommendations and together with the client, designs a plan to ensure practicality and attractiveness. Before the representative leaves, he or she will take measurements to determine proper fit.

Efficiency and quality are top priorities for Daryn Weatherman and St. Charles Glass and Glazing Inc. Within one day of a consultation, a bid will be generated and provided to the customer for their approval. From there, the customer can either accept the bid as is, or request alterations. No times is wasted from ordering to inspecting materials. From start to finish, customers can expect their project to be completed within 7 to 10 days of the initial consultation.

St. Charles Glass and Glazing Inc. is not limited to replacement windows. They are also well-known for designing and installing custom creations. Custom windows and doors can add an extra touch of beauty and originality to your home and Daryn Weatherman is pleased to ensure that you are completely satisfied with his company’s work.

Whatever your glass needs are, Daryn Weatherman and St. Charles Glass and Glazing Inc. has a solution for you. Do you have antique furniture in need of a replacement glass piece? Are you thinking of installing glass shower doors or maybe a handicap accessible shower enclosure? Do you have automotive glass needs? Daryn Weatherman’s company would gladly assist you with any of these needs with a special eye on quality and craftsmanship.


Daryn Weatherman, a St. Charles resident, founded St. Charles Glass and Glazing Inc. over 15 years ago. Through his consistent hard work and vision, Weatherman expanded his staff from 4 workers to 114 employees including members of the Glazers Union Local 513. Also numbered in his staff are shelving specialists registered with the district carpenters’ union.

St. Charles Glass and Glazing specializes in all types of glass and glazing projects, including replacement residential glass, custom windows, automotive glass, commercial glazing, shower enclosures, mirrors, glass tabletops, and wire shelving. Talented staff and expert leadership have gained the company a solid reputation built on quality and efficiency.

Monday 12 November 2012

Warren Buffett - More of an Equity Investor of Entrepreneurs

Entrepreneurship Taught By Warren Buffett

By seeing that we attached entrepreneurship with Warren Buffett, you may be confused, don’t worry, we’ll get to it.

Typically, when we write these articles, we only put one, maybe two quotes. We had trouble because Warren Buffett had so many. Therefore, before we get into the article, here are our favorite three:

Warren Buffett:

“I always knew I was going to be rich. I don’t think I ever doubted it for a minute.”
“It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.”

“Beware of geeks bearing formulas.”

Buffett’s Road to Entrepreneurship

Warren Edward Buffett was born August 30, 1930, in Omaha, Nebraska. His father was a local stockbroker. Buffett was always fascinated by numbers and at the age 8, he began reading his father’s stock books. At age 11, he marked the board at the brokerage house where his father worked. From that age, Buffett began to think in a very entrepreneurial way. In fact, Buffett did not want to go to college, instead he wanted to go directly into business. His father convince the young Buffett to attend the University of Nebraska where Warren Buffett would end up reading a book that would change his life, our lives and investing as we know it. This book is the still famous Intelligent Investor by legendary investor Benjamin Graham. Buffett was so intrigued by his writings that he applied to receive his MBA in economics at Columbia University in New York where Benjamin was teaching. Some people who were in the class in which Graham was teaching and which Buffett was a student, described the classes as a conversation between Buffett and Graham with the rest being an audience. Eventually, Buffett was asked to join Graham’s company, the Graham-Newman Corporation. After two years, the company disbanded. Buffett went back to Nebraska.

Upon return to Nebraska, Buffett had only $100 of his own money to invest. He was able to convince six investors to put in a total of $100,000 and, in time, Buffett would make billions. Now, many people see him as a stock picker. Warren Buffett is not a stock-picker in the traditional sense. Instead, he is the type of person who goes into a company and makes it better through fresh, innovative ideas which are entrepreneurial and make money. That is why Warren Buffett buys so much stock in one company like he did in Geico, he can step in and make them better. Most people think of entrepreneurship as just starting a small business and hoping it does well. Warren Buffett’s version is just on a much more grand scale. If Buffett did not have an entrepreneurial spirit, Berkshire Hathaway would have never been.

Warren Buffet is known as one of the best, if not the best investor of our time. Though, if you look a little closer at his ventures, they are quite entrepreneurial.

Ken Sundheim is President and Founder of KAS Placement “KAS Sales Recruiter”



Friday 9 November 2012

A Warren Buffett Stock Tip

Warren Buffet’s advice in relation to investing in stocks is considered to be highly valuable as the principle on which his investment is based has always resulted in beneficial results. Warren Buffet states that an investor must invest in stocks of a company that has relatively straight forward products and services. It is highly essential that an investor must understand the business that the company is dealing with so that s/he is easily able to follow the financial and non-financial position of the company. It is highly important that before an investment takes places, an investor must analyze the essentials of the company and perform a complete analysis in order to determine the current value of stock and the future prospects of the company.

An analyzing stock, Warren Buffet states that an investor must calculate the intrinsic value of the stock that is the present value of all the future net cash inflows associated with the stock. This includes the dividends and capital gains that would be realized over the period of investment which is termed as five years at a minimum. The intrinsic value would also help in determining whether the stock is undervalued or overvalued. Warren buffet argues that an investor must invest in stocks that are undervalued so that capital gains could be realized when the market value appreciates and correlates with the intrinsic value of the stock.

Warren Buffet states that an investor must avoid stocks that offer high financial gearing as debt results in higher financial risk within the company. The company analysis must focus on return on equity and the gross profit and net profit margin generated in recent years in order to assess the profitability and viability of the organization. It is always preferable to invest in companies that have a monopoly or competitive advantage over other companies within the industry. This would result in the stock to remain relatively stable over a period of time despite changes in selling prices or economic conditions. This is due to the fact that monopoly companies are able to exploit the target market and take advantage of economies of scale without hampering profitability.

Thus, the basic stock tip offered by of the Warren Buffet Book is that an investor must analyze the company before going ahead and buying the stocks. This allows the investor to understand the fundamentals of the company and judge the future stream of dividends associated with the stock. An investor must only invest in those companies that he truly understands and refrain from high diversification. Instead an investor must analyze a few companies and continue to invest in them in order to generate gains. Although diversification is said to reduce the systematic risk associated with stocks, Warren Buffet argues that diversification results in overall lower returns. The stock tip of Warren Buffet is to analyze a company before hand and invest only if the intrinsic value is high enough. If the stock results in sufficient gains, then an investor must continue to invest in the same stocks rather than diversify towards other stocks available in the market.

Article Source: http://ezinearticles.com/

Check out also for Daryn Weatherman and Daryn Weatherman MO

Monday 29 October 2012

Recommended warren Buffett Books to Read

Warren Buffett is the world’s top business investor and philanthropist. He is the CEO, primary shareholder and Chairman of Berkshire Hathaway, and is ranked amongst the world’s wealthiest people. Known as the wizard of Omaha, he is well known for his value investing philosophy. If you want to invest like Warren Buffett, there are several books, which have inspired and therefore, have been recommended by this influential man -setting you on the right path of investing enlightenment. So here is a brief overview of the most influential books which will set you on the right path to buying stock like Warren Buffett.

The Intelligent Investor by Benjamin Graham

This book was written by the second most influential man in Warren Buffett’s life right after his father. Benjamin Graham, also known as the father of value investing was the mentor of Buffett grounding him with the basic intellectual framework. The book was published in 1949 and since then it has sold millions of copies worldwide. This book, which has been praised by Warren Buffett as the best book ever to be written, focuses not on profit maximization but on loss minimization. The Intelligent Investor is not a book for the day traders or speculators but for true investors. The best part about this book is that it is suitable for laymen giving guidance in adoption and execution of an investment policy.

The Little Book of Common Sense: The Only Way to Guarantee Your Fair Share of Stock Market Returns by John C Bogle. This book gives the most practical advice complete with the expert evaluations, showing you that investing is all about common sense. This book will not only change your investment attitude, but will also be your bible that guides you towards the successful path, regarding how to add to your portfolio, using the strategies of certified investment.

Take on the Street: What Wall Street and Corporate America Don’t Want You to Know by Arthur Levitt.

Arthur Levitt was the longest serving chairman of the United States Securities and Exchange Commission, supervising the dotcom boom days of the 90′s stock market. In this book, Arthur Levitt reveals the tactics of corporate America for hoarding the billions poured into mutual funds as well as stocks by working Americans. Levitt also reveals how to invest into the stock market, and also in the mutual funds intelligently. He focuses his advice towards the individual small investors and guiding them about the exploitation detection tips, evaluating the press releases and the annual reports, and also discussing about the tactics worth adopting, so as to benefit more from the trustworthy sources.

The Theory of Investment Value by John Burr Williams

It was 1938, when the first edition of this book came into the market. Today it is still considered to be one of the most trustworthy books, which discusses the financial asset evaluation. Burr Williams has combined concepts with actual experiences that took place in the investment world, giving verifiable insights. The breakthrough discovery made by Williams was to give an educated guess that provides a fundamental value called the Dividend Discount Model; this value is still subject to question in the market’s institutional sectors by the professional investors.

Paths to Wealth through common stocks By Philip Fisher

Designed to help those investors who have management queries and issues, this book contains one innovative concept after the other -aiming to lend a hand to every business that needs honest advice regarding investments. In this book, Philip Fisher reveals why worthwhile profits that generate from ownership of common stocks reduce the risk while increasing profits. Many of his ideas in this book are based on orthodox strategies of investment, which are still able to acquire remarkable returns – as a result they are of the utmost relevance in today’s market.

Security Analysis: Principle and Technique by Ben Graham and Dave Dodd

For nearly 70 years, Benjamin Graham’s theories recognized as the groundbreaking ones, have inspired and influenced investors. The Security Analysis, publication of 1934, is no less than a bible for both professional and potential investors. The second edition, from 1940, has been Graham’s protégé Warren Buffett’s most inspirational book.

Common Stocks and Uncommon Profits by Philip A Fisher

Contemporary finance professionals such as Warren Buffett use Philip A Fisher’s investment principles as he is regarded as the pioneer of modern investment theory. This book identifies the value of the maximum length growth stocks as compared to the small duration stocks, and their impacts on the initial foundation of any business/investment. Published in 1958, this investment classic is considered as the foundation for many of today’s investment philosophy and beliefs.

Where Are the Customers’ Yachts? Or A Good Hard Look at Wall Street by Fred Schwed, Jr

This book is known to be amusing and engaging, as it reveals the Wall Street’s hypocrisy and foolishness. The subject of discussion represents a story of a guest in New York who naively asks after admiring the yachts of brokers and bankers, where the yachts of the customers were? This shows that the customers were unable to afford yachts, although they were in constant interaction with their investment advisors, i.e, the brokers and the bankers.

Author is the founder of the free online education site, Warren Buffett Books, which teaches students how to invest like Buffett. The site requires no sign-up or fee and it offers over 10 hours of video based lessons that teach students step by step methods to invest like Warren Buffett. Be sure to follow this link to watch a video on Warren Buffett Book.


Tuesday 23 October 2012

Best Investing Resources and Tips

One of the most difficult aspects of finding sound investment advice is talking to people that aren’t trying to sell you something. So where can you go and who can you talk to without getting caught in a hidden agenda? Well here’s a list of a few resources I’ve uncovered through the years that have helped in my financial understanding.

General Information

For starters, if you’re looking for basic information on stocks and bonds, you’ll find it hard to get a better resource than Investopedia.com. This site has a wealth of information that’s all free and available to the public. Since the site is very robust, it’s likely it can answer almost any financial investing questions you might have.

Simulation Investing

Have you ever wanted to test your strategy before you actually try it out with your hard earned cash? Well, at the Motley Fool, you can do just that. By signing up for a free account, you can pick stocks that you feel will beat the SP 500 and test your strategy. Not only can you test your strategy, but you can also track the successes of other members and users. This approach will definitely provide a quick a free way to validate your investing approach.

Video Based Learning

Although investing is a hard subject to thoroughly understand, visiting the next resource may add a few steps of enthusiasm to your approach. By visiting a website called BuffettsBooks.com, you’ll be sure to watch over 10 hours of video content that teaches investors how to invest like Warren Buffett. The site also provides a money forum where members contribute to each other’s stock and bond picks. Although the site isn’t as large as other investment sites, its community of forum members are some of the most astute investment thinkers you’ll find.

With so much information available online, it’s easy to get tricked into thinking a site is an informational authority when in fact is a marketing scheme. When it comes to investing, these three sites are simply the best on the net. With a little determination and a lot of studying I’m sure these resources will provide you with the knowledge to talking your investing goals.

Thursday 18 October 2012

Gentleman Jim night at Daytona RC

Members of the Red Sox Racing League paid tribute to their friend and fellow driver, “Gentleman Jim” Albertson when they traveled to Florida for the “Gentleman Jim’s 24 Laps of Daytona” at the Daytona International Speedway road course.  One of the founding members of iRacing and an original RSR league member, Albertson has been unable to race since early 2012.  Always a calming presence on the track, his absence from online racing has been felt by the entire online racing community.

As one RSR driver put it before the race “All of us have a favorite memory about Jim. He is the consummate gentleman; always willing to lend advice to new drivers, always quick to share setup tips, and eager to help others learn the fastest way around the tracks.  Jim gave everything he had to helping others improve their skills. It’s not just his helpfulness. It’s also his approach to helping his fellow drivers; he did so with genuine thought and care about how his words and actions would be received by others.  Jim’s approach to life reinforced to everyone, the idea that we should always be civil. Whether it was in the heat of an on track battle, or just in everyday conversation, Jim was the same… a gentleman. I wish we had more like him.”

In further tribute to Jim, Corvette driver Corey Wolf arrived in Florida with a newly painted # 13 car designed to resemble the POW/MIA car Albertson last drove in competition.  “I want the fans to know how much Jim has meant to us all”, said Wolf before the race.  “I hope he gets a big smile on his face when he sees the car in action tonight.”

As usual, Brad Vincent arrived to the track as the heavy favorite to win the Class A HPD event.  He didn’t disappoint in qualifying, earning his sixth pole of the season with a lap time of 1:33.586.  Les Turner started in the second position with a lap time of 1:34.173.  Rows two through five were occupied by; John Koscielniak, Terry Daul, Ed Sutcliff, Andrew Feldman, David Weiss, Divina Galica, William Kabela, and Bill Pawluckie.
Paul Hesla earned his third pole of the season in the Class B Corvette event, barely edging out Jason Brown for the top spot.  Both drivers were almost a full second ahead of the remaining Corvette drivers when they posted 1:38.9+ lap times.  Scott Husted, Corey A. Wolf, Jeff Thomas, Dennis Griffen, and James Prostell, Jr. completed the Corvette grid.  Brown’s car experienced electrical problems after qualifying, so he was forced to begin the race from pit road.

Daytona’s 12 corner, 3.56 mile road course offers drivers a combination of tightly angled infield corners and wide open racing on the steeply banked superspeedway.  The relatively flat design of the infield section means drivers have to pay special attention to the corner exits that lead onto the long straights, something that would come into play throughout the race as drivers pushed to gain speed.

Perhaps in tribute to the calm, cool driving style of their good friend Albertson, the RSR field got off to an incredibly clean race when the green flag dropped.  Weiss, Wolf, and Griffen all gained positions early on, and Wolf and Husted traded spots several times in the opening laps.

On lap 5 Thomas was the first of three drivers to succumb to the hazards exiting turn five when he lost traction and spun harmlessly into the infield grass.  Hesla and Prostell would lose valuable time in the same corner later in the race.

Vincent had gained such a huge lead on the HPD field that despite a spin exiting T3 on lap thirteen he didn’t  lose the lead.  Turner’s spotter barely had enough time to mention the incident before Vincent had corrected his vehicle and accelerated back to race pace.

Sutcliff did a good job of keeping pace with Daul in the first half of the race, but gave up 5th place when he flubbed his exit from pit road on lap fifteen.  “I’m not sure what happened”, said Sutcliff after the race.  “I was exiting pit road with plenty of time to maintain my position, when I suddenly realized my car was skidding into the infield grass!” Husted’s hopes for a podium finish were dashed on lap eighteen when his car spun sideways in T9 and skidded hard into the outside wall.

Overall, the race was run in the way “Gentleman Jim” Albertson would have liked it, with 7 of 17 drivers completing the event without incident, and no major dustups affecting the outcome.


Tuesday 9 October 2012

Facebook Hits 1 Billion User Mark

Facebook has become the first social media network to boast one billion users around the world.

While Facebook has seen the number of users setting up accounts in both the US and UK reach a plateau the social network has still seen users increase in other parts of the world and now has one billion users on the network.

Mark Zukerberg, the founder of Facebook said about the milestone: “Helping a billion people connect is amazing, humbling and by far the thing I am most proud of in my life.”

He went on to say that he is aiming to have the population of the entire world on the social network as his ultimate goal – that would mean almost seven billion users signed up to the social network.

Having a seventh of the total population of the globe using your network is something that has never happened before in history but it has still not helped the share prices for Facebook.

When the company was floated in May it came out at only $104 billion, a disaster in terms of what had been expected from the social networking site.

The announcement of one billion users did perhaps help to raise the price of shares by 10 cents to $21.93 yesterday but that is still only over a little more than half their value when Facebook initially offered them out to the public.

Experts have suggested that a problem with Facebook becoming a public company is the structure at the top of the company.

While it is admirable to maintain a small founding group at the very top of the company, the reality is that a large public company is not usually controlled by so few people and with interests as large as Facebook it has seemed detrimental to share prices to do this.

It has to be considered if the public and other investors are willing to place their hard earned cash into the pockets of only a few people.

What happens if Mark Zukerberg catches a cold and cannot come into the office to make important decisions, or even worse, what happens if he begins to loose interest in Facebook altogether and takes his eye off the ball when it comes to research and development.

Investors are not willing to take risks with their money when these sorts of issues should be ironed out before a company is floated on the market perhaps.

While it was a great day for publicity for Facebook the news that Zynga, the online gaming company that accounts for 14 percent of the revenue created for Facebook, announced that they were cutting their annual forecast.

The company stated that they were at best hoping to break even in the third quarter of 2012 as online gamers spend less and new titles from the company take longer to hit the market.


Sunday 7 October 2012

The Teachings Of Warren Buffet-Secrets You Must Know!

I just stumbled across this on a Website, and thought I’d share it with everyone, I hope you find it worthwhile for your time, read on…

What Warren Buffet says about basic investing, spending, savings are so true. Most of us know it, however too many of us do not live it.

If it does make a change in your life, thank HIM (I mean God) because this is common sense. WB said it once, I am just reproducing it.

1. On Earning:

Do not depend on a single income. Invest and create a second/ third source of income:

This means when you are young your first task should be saving and investing. By creating a second source of income you are quickly reducing your dependence on your job. This could help you to set out on your own one day. The quicker you can do it, the better.

2. On Spending:

If you buy things that you do not need, you may soon have to sell things you need:

It kind of summarizes Gen X’s reaction towards ‘luxuries’. As a part of Gen X we were perhaps criticised for some of our expenses, so it could be a generational thing even for WB. However, having goals and knowing where you are going, and not spending just to ‘show off’ are important lessons for all generations.
3. On Savings:

Do not spend what is left after spending, instead spend after you save/invest:

Also called ‘Pay Yourself First’. If you realise that investing in a pension plan or for your kid’s education is just helping you to save more later on. It is not a sacrifice, it is just postponing consumption. So understand, invest and then spend.

4. On taking Risk:

Never test the depth of the river with both your feet:

If you are doing something, do small. If you are a first gen investor, do not be carried away by equity lovers like me and put all your money in equity. Do a SIP with a small amount, and test the waters. Do a SIP of Rs. X (which could be 10% of your take home pay) for 5 years and then step up. And for heavens sake understand risk of inflation, and the concept of real returns

5. On Investing:

Do not put all eggs in one basket:

Immaterial of who you are and how much you understand, create a portfolio. A full range lunch plate is always better than just one item. So create a portfolio with bonds, bond funds, PPF, NSC, equity, mutual funds, and on the risk side medical and term insurance.

6. On Expectation:

Honesty is expensive, do not expect it from cheap people:
Not everybody is honest, nor does everybody want to be honest. Honest advisers are difficult to find especially in Health and Wealth, be careful.


Saturday 6 October 2012

Three stories of my life': Steve Jobs

This is a commencement address to the graduates of Stanford University by Steve Jobs, CEO of Apple Computer and of Pixar Animation on June 12, 2005.

1. The first story is about connecting the dots. 

I dropped out of Reed College after the first 6 months... Because I had dropped out and didn’t have to take the normal classes, I decided to take a calligraphy class... Ten years later, when we were designing the first Macintosh computer, it all came back to me. And we designed it all into the Mac. And since Windows just copied the Mac... If I had never dropped out, I would have never dropped in on this calligraphy class, and personal computers might not have the wonderful typography that they do... You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something — your gut, destiny, life, karma, whatever.

2. My second story is about love and loss. 

I got fired [from Apple]. During the next five years, I started a company named NeXT, another company named Pixar, and fell in love with an amazing woman who would become my wife. Pixar went on to create the world’s first computer-animated feature film, Toy Story, and is now the most successful animation studio in the world. Apple bought NeXT, I returned to Apple, and the technology we developed at NeXT is at the heart of Apple’s current renaissance. And Laurene and I have a wonderful family together. I’m pretty sure none of this would have happened if I hadn’t been fired from Apple. It awful tasted medicine, but I guess the patient needed it. You’ve got to find what you love. So keep looking until you find it. Don’t settle.

3. My third story is about death. 

I was diagnosed with cancer. The doctors told me this was almost certainly a type that is incurable. [Later] I had surgery and I’m fine now. No one wants to die. And yet death is the destination we all share. It is Life’s change agent. It clears out the old to make way for the new. Right now the new is you, but someday you will gradually become the old and be cleared away. Your time is limited, so don’t waste it living someone else’s life. When I was young, there was an amazing publication called The Whole Earth Catalog. On the back cover of their final issue were the words: “Stay Hungry. Stay Foolish”. And I have always wished that for myself. And now, as you graduate to begin anew, I wish that for you. Stay Hungry. Stay Foolish. Thank you all very much.

A Tribute from : Daryn weatherman

Thursday 4 October 2012

Steve Jobs: 9 Valuable Lessons for Entrepreneurs

Steve Jobs was a truly inspiring man whose beliefs and practices have inspired many people.

Following are the top nine most inspiring lessons I have learned from Steve Jobs:

#1 Do things right

At a young age, Steve Jobs learned a valuable lesson from his father: to craft the back of cabinets and fences properly, even though they were hidden.

Jobs learned at an early age that it was important to do things the right way. From the inside out, Steve Jobs believed in simple, beautiful design even on the parts of the product that you don’t see.

#2 Use simplicity in design

People like easy solutions to problems, and Jobs understood that. Apple devices integrate hardware and software flawlessly through simple design. Apple strips any unnecessary features from their products. Steve Jobs prided himself on his design philosophy that he carried with him throughout his time at Apple: Jobs felt that design simplicity should be linked by making products easy to use.

#3 Focus is important

Steve Jobs had the ability to focus intensely on only a handful of core objectives. It was important to him to focus on developing 1 amazing product at a time, instead of 1000 mediocre ones.

#4 Don’t let others say you can’t do something

A job was known for his futuristic imagination when developing products. Often, the Apple engineers would tell him that his ideas were not possible and could not happen. Jobs would tell them to find a way to do it. Steve Jobs adopted the mindset that if he decided that something should happen, then he was just going to make it happen.

#5 Understand customer needs and wants

Jobs had a unique ability to anticipate future technology that people don’t even know they needed. Jobs completely revolutionized the computer, music, phone, and tablet industry. Jobs philosophy is summed up in this quote: Jobs ability to understand human desire and what the next breakthrough technology would be, allowed him to create great companies founded on well designed products.

#6 it’s not about the money

Steve Jobs did not care about money when he built companies. He believed that you should never start a company with the goal of getting rich. Your goal should be making something you believe in and making a company that will last.

#7 Recuit ‘A’ players to your team

Recruiting A players to your team is crucial! Players are the brains behind great ideas and great products. Surrounding yourself with smart, innovative people is the best way to jumpstart a business. But, A players typically like to work with other A players, says Jobs. So, save yourself both time and money by focusing on only hiring A players into your organization.

#8 ‘Talk the talk’ before you can ‘walk the walk’

Jobs was very confident in his abilities, yet extremely persistent with his beliefs. He did not always have the power, or the seniority to voice his opinion so strongly, but Jobs taught me to pretend to be completely in control and people will assume that you are. People naturally like to follow others who exude confidence (not to be confused with cockiness). Jony Ive sums up Job’s persuasive abilities:

#9 Only accept product perfection

Jobs was known to either think something was the greatest thing ever, or think it was awful. There was no in between. Steve Jobs was incredibly passionate about his products, and he showed it. Don’t settle for something just to meet a deadline, work on your product until it is perfect and you are 100% proud of it.
Conclusion

These lessons from Steve Jobs can be very beneficial to you and your business. Think about them and brainstorm how you can utilize them within your business.

For further reading on Steve Jobs, I highly recommend you pick up your own copy of Walter Isaacson’s Biography on Steve Jobs. To this day, it is one of the best books I have read.
Comment to let me know what you think of this post!


Wednesday 3 October 2012

Investment Books Recommended By Warren Buffett

“I always knew I was going to be rich. I don’t think I ever doubted it for a minute.”-Warren Buffett

Warren Buffett is the world’s top business investor and philanthropist. He is the CEO, primary shareholder and Chairman of Berkshire Hathaway, and is ranked amongst the world’s wealthiest people. Known as the wizard of Omaha, he is well known for his value investing philosophy. If you want to invest like Warren Buffett, there are several books, which have inspired and therefore, have been recommended by this influential man -setting you on the right path of investing enlightenment. So here is a brief overview of the most influential books which will set you on the right path to buying stock like Warren Buffett.

The Intelligent Investor by Benjamin Graham

This book was written by the second most influential man in Warren Buffett’s life right after his father. Benjamin Graham, also known as the father of value investing was the mentor of Buffett grounding him with the basic intellectual framework. The book was published in 1949 and since then it has sold millions of copies worldwide. This book, which has been praised by Warren Buffett as the best book ever to be written, focuses not on profit maximization but on loss minimization. The Intelligent Investor is not a book for the day traders or speculators but for true investors. The best part about this book is that it is suitable for laymen giving guidance in adoption and execution of an investment policy.

The Little Book of Common Sense: The Only Way to Guarantee Your Fair Share of Stock Market Returns by John C Bogle

This book gives the most practical advice complete with the expert evaluations, showing you that investing is all about common sense. This book will not only change your investment attitude, but will also be your bible that guides you towards the successful path, regarding how to add to your portfolio, using the strategies of certified investment.

Take on the Street: What Wall Street and Corporate America Don’t Want You to Know by Arthur Levitt.

Arthur Levitt was the longest serving chairman of the United States Securities and Exchange Commission, supervising the dotcom boom days of the 90′s stock market. In this book, Arthur Levitt reveals the tactics of corporate America for hoarding the billions poured into mutual funds as well as stocks by working Americans. Levitt also reveals how to invest into the stock market, and also in the mutual funds intelligently. He focuses his advice towards the individual small investors and guiding them about the exploitation detection tips, evaluating the press releases and the annual reports, and also discussing about the tactics worth adopting, so as to benefit more from the trustworthy sources.

The Theory of Investment Value by John Burr Williams

It was 1938, when the first edition of this book came into the market. Today it is still considered to be one of the most trustworthy books, which discusses the financial asset evaluation. Burr Williams has combined concepts with actual experiences that took place in the investment world, giving verifiable insights. The breakthrough discovery made by Williams was to give an educated guess that provides a fundamental value called the Dividend Discount Model; this value is still subject to question in the market’s institutional sectors by the professional investors.

Paths to Wealth through common stocks By Philip Fisher

Designed to help those investors who have management queries and issues, this book contains one innovative concept after the other -aiming to lend a hand to every business that needs honest advice regarding investments. In this book, Philip Fisher reveals why worthwhile profits that generate from ownership of common stocks reduce the risk while increasing profits. Many of his ideas in this book are based on orthodox strategies of investment, which are still able to acquire remarkable returns – as a result they are of the utmost relevance in today’s market.

Security Analysis: Principle and Technique by Ben Graham and Dave Dodd

For nearly 70 years, Benjamin Graham’s theories recognized as the groundbreaking ones, have inspired and influenced investors. The Security Analysis, publication of 1934, is no less than a bible for both professional and potential investors. The second edition, from 1940, has been Graham’s Warren Buffett’s most inspirational book.

Common Stocks and Uncommon Profits by Philip A Fisher

Contemporary finance professionals such as Warren Buffett use Philip A Fisher’s investment principles as he is regarded as the pioneer of modern investment theory. This book identifies the value of the maximum length growth stocks as compared to the small duration stocks, and their impacts on the initial foundation of any business/investment. Published in 1958, this investment classic is considered as the foundation for many of today’s investment philosophy and money forum.

Where Are the Customers’ Yachts? Or A Good Hard Look at Wall Street by Fred Schwed, Jr

This book is known to be amusing and engaging, as it reveals the Wall Street’s hypocrisy and foolishness. The subject of discussion represents a story of a guest in New York who naively asks after admiring the yachts of brokers and bankers, where the yachts of the customers were? This shows that the customers were unable to afford yachts, although they were in constant interaction with their investment advisors, i.e, the brokers and the bankers. This book gives all the wise advice and promises along with a realistic outlook of the investment world; here the customers lose everything but their brokers acquire their targets, hence it helps investors get an insight into the tough world of Wall Street.

The Interpretation of Financial statements, by Benjamin Graham co-written with Spencer Meredith

Many investors are laymen and are not accountants or financial analysts. If they want to have a look at the balance sheet, they need to understand the financial terms and the roles they play in company analysis. Instead of doing a short course on company accounting, the best way is to start reading this classic book on The Interpretation of Financial statements.

In this book, Graham perfectly guides you through the terms used in a company’s balance sheet and discusses what importance they hold in determining the financial position of a company. He demystifies the complexity of concepts such as maintenance and depreciation, ‘liquidating value’, and net tangible assets.

Author is the founder of the free online education site, Warren Buffett Book, which teaches students how to invest like Buffett. The site requires no sign-up or fee and it offers over 10 hours of video based lessons that teach students step by step methods to invest like Warren Buffett.


Tuesday 2 October 2012

Glass Build America 2012 report

It has been an eventful few years for the glass and glazing industry, with more changes to come as it emerges from the downturn. Mergers and acquisitions, increased expectations from the building community, technological developments and personnel challenges are shaping the industry of today?and tomorrow?according to GlassBuild America attendees.

Business closures, bankruptcies, and mergers and acquisitions have become almost routine, as companies with too much debt and too little cash-on-hand succumb to the lingering market drought, and those with adequate financing take advantage of the business opportunities.

“Mergers and acquisitions keep coming. For a time, every week [saw] another notice of a failure or M&A. We have seen this slow, but they keep coming,” said Oliver Stepe, senior vice president of sales & marketing, YKK AP America, during the State of the Industry panel at GlassBuild America, Sept. 13.

“We’ve seen the failure of some of the seemingly most successful companies in the industry. That creates a tremendous challenge,” he told attendees. “Think about the thousands of employees who have been displaced or feel uncertainty.”

“Eighteen months ago, you probably started to notice bigger companies coming into your neck of the woods,” added panelist Scott Clymire, vice president, United Architectural Metals, speaking to the contract glaziers in the audience. “You were being challenged with being competitive with companies that had different ways of doing things. We see now that some of those business practices were bad ideas. We have seen a lot of failure, and we’ve been dealing with a lot of things over the last 18 months.”

The result is a compressed market, with fewer companies, including some very large players. Additionally, the industry shake-up created trepidation among builders and owners, leading to tightening project terms. “People are nervous,” Clymire said. “We’re seeing the involvement of bonding companies, and additional vendor terms. We’re seeing things like ‘cash on delivery,’ and we are starting to be strict about 30-day terms.”

And, players in the glass industry report difficulty getting paid. “This is a struggle in our industry,” Clymire said. “Until you get paid, we don’t get paid.”

To help combat the problem, glass and glazing suppliers need to team up with the contract glazier on projects. “We need your help—we need to do these things together, not individually,” said panelist Garret Henson, vice president of sales, Viracon.

The technology revolution

Despite the slow construction market, several trends have put increased pressure on the industry, among them: increased adoption of Building Integrated Modeling and a push toward design-build scenarios. The industry has responded in kind by using new technology to meet customer needs.

“We used to just think about the technology of the building and the technology of the system. Now, we also have to think about the technology of the software,” Clymire said. “BIM, integrated project building, require us to be better about what we do. The business wasn’t set up [for these considerations]. Now we have to do 3D models. …. We are training everybody with this new approach, and our contracts are changing.”

Clymire added that BIM models are still behind for the industry, particularly for custom products. “We spend so much time with 3D models for the architect and then move back to 2D models when we’re in the plant,” he said. “We need to [improve] programs to the level where we need them to be.”

As the increased demand for BIM reflects, “It’s no longer enough to just be the expert on framing and glass,” Stepe said. “We have to be experts on the entire discipline, as everything is becoming fully integrated.”

The personnel challenge

Looking forward, companies are facing a three-tiered personnel challenge: to recruit, train and develop talented young people to become future industry leaders.

“We struggle with finding the right talent that is interested in getting into glazing,” Clymire said. With design-assist becoming more common, UAM is seeking architects and engineers that want to get involved on the manufacturing side of the building trade, he said.

As the glass and glazing business becomes increasingly more sophisticated, education and training on all levels at a company are critical. “Our employees are our assets, and the investment in people is important,” Henson added.

And new employees coming into the industry will expect these training opportunities. “More and more, we are hiring new people from outside of the industry, and they’re asking us, ‘what are you doing to train?’” Stepe said. YKK developed several training programs that it utilizes when necessary, including basic product training, one week of manufacturing training, a quick-start program to prepare new employees for customer service within 90 days, and career development training.

“One of the best things you can do is to use an employee to train other people,” Stepe said. “It’s a good motivational technique. Send employees to conferences and symposiums, and when they come back, have [him or her] speak to the team about it.”

“The young people coming in need to be embraced. We have to make the knowledge transfer happen.”


Check out also for Daryn Weatherman Leads St. Charles Glass in Mission to Provide Phenomenal Custom Installations.

Friday 28 September 2012

How Did Warren Buffett Acquire Berkshire Hathaway

If you are anxious to learn how to invest like the multimillionaire Warren Buffett, it is important to first flick through some investments made by the man, in his beginning years of investment. After a thorough review, your information on the subject will then be sound enough to buy stocks like Warren Buffett.

One of the earliest and most talked about investment made by him was in the company named Berkshire Hathaway that is situated in Omaha, Nebraska in the U.S.A. The company is involved in the business of cotton mill and cotton spinning. In May 2012, the class A shares of Berkshire became the highest priced shares in the New York Stock Exchange.

This company is a gigantic merger of two companies namely Hathaway Manufacturing Company and Berkshire Fine Spinning Associates Inc. that took place in the 1950s. The reason for this merger was a depression in the textile business after the World War I. The investor Seabury Stanton of Hathaway contributed some more money to help it out of the hard time. As a result, soon the company came into its boom period, where he decided to shake hands with Berkshire Fine Spinning Associates Inc.

Warren Buffett made his appearance in the early 1960s, by buying the stocks of the much bigger Berkshire Hathaway. Although, when Warren looks back to what he has earned in the last almost half the century of his investment, he calls it a poor investment decision as he could have earned multiple folds of returns if he would have invested the same in an insurance company.

However, he learned a lot about investing after he acquired Berkshire Hathaway. He started by buying stocks of the company in 1962. Here, the reason of investment was Warren Buffett’s intrinsic value concept. He believed that the sale price of the stock was lower than its intrinsic value. Moreover, he had followed a trend in the share prices of the business after every shutdown of the mill of the company.

Within a year, he and his associate investors became the largest shareholder of the company. As a result, Warren showed more interest in the company and continued to buy its stocks. However, it soon came to notice that the textile business was losing its charm in the market. Therefore, Jack Stanton, who took the leadership from his father, offered to verbally buy the stocks held by Warren Buffett at a low price of $11 ½. Warren agreed to the offer, but when the written agreement was sent, it quoted the share price at $11 3/8. This made Warren angry, after that, he decided to purchase more of the company’s shares to become a holding owner. Therefore, he bought 49% of the shares, fired Stanton with the power of his vote, became the Chairman, and introduced Ken Chace as its President.

The scenario had worsened as he was holding a company that was near to close down. However, Warren handed the spinning business operations to Chace and focused upon improving the financial structure of the company.

The reason behind such a decision was that Warren had estimated that the intrinsic value of shares had fallen below the share price, and the profitability was reduced to the minimum point. He could have saved the mills from closing down by opting for the debts, but he opposed taking debt for running a business. Conclusively, just two mills were left running with 2300 employees working for the company. Both the experts managed to stabilize the company at this point, and the share price elevated by $ 3 since Warren had bought its shares.

Berkshire survived many ups and downs during its running. But Warren Buffett’s intrinsic value principle aided to recover from its worst time and begin to generate good revenues later on. Warren initiated to step ahead in diversifying this business, and he opted for the insurance business. Berkshire bought equity stakes of the Government Employees Insurance Company, in the 1970s. This investment became the source of financing for Berkshire in the form of great returns over the amount capitalized.

This made Berkshire the investment vehicle for Warren, as he started making investments in other businesses. The textile business aspect was soon understood to be endangered by the foreign market competition and huge costs it will have to bear to improve the structure. Hence, in 1985, the last textile mill operations also were shut down.

The unprofitable business was put to an end, because Warren had foreseen that textile business was in loss and that Berkshire does not stand a chance in the future. This was the reason why he introduced Berkshire Hathaway into the insurance market. The insurance business has a great deal of profits as there are huge premiums charged against a situation that might or might not take place. Hence, the company became an investment legend thereon.

At present, Berkshire Hathaway Inc. is controlling many subsidiary companies. It has shown a growth rate of 20.3% in its last 44 years. Warren Buffett is its Chairman and CEO. In the span of ten years from 2000-2010, the company’s stocks gave a return of 76% to its investors. It is quoted to be the eighth largest public company in the globe.

If you would like to learn more about who is Warren Buffett? Be sure to click on this link because it provides a bio of his personal achievements.

Also, if you would like to learn how to invest like Warren Buffett by reading Warren Buffett Book, this link takes you to a comprehensive site that teaches his investing approach through 10 hours of free YouTube videos. All the videos are in a systematic order so it makes the learning easy for a beginning investor.


Acknowledge By Daryn Weatherman