How to Invest Like Warren Buffett

Over the last sixty years, the world has come to know one of the greatest stock investors of all time - Warren Buffett. Although a lot is known about what stocks Warren Buffett owns, few understand how he picks them. Hopefully, this little guide will help.

The first thing a person must understand to invest like Warren Buffett is that owning one stock is no different then owning an entire business. For example, if you own 1 share of Wal-Mart, you will make the exact same return, relatively speaking, if you owned all the shares. You see, Warren Buffett looks at the ownership of 1 share as if it was a miniature business. To demonstrate this idea, let's image that we opened a game of monopoly. As you probably remember, there are plastic hotels used to play the game. Now, Imagine that you place one of these plastic hotels down on a desk in front of you. As you look at that plastic building, imagine that it's a miniature business; let's call the business Wal-Mart Mini. Since the business is so small, it's only worth $75. When you buy this miniature business for $75, you can expect to make a profit every year. For this particular business, it makes a profit of $4.65 each year. As you can see, if you spend $75 purchasing this tiny company, you'll most likely make a 6.2% return on your money. Return equals the profit ($4.65) divided by the cost to own the business ($75): $4.65/$75

Is Now a Good Time to Get Into Real Estate Investing?

ByRobert W Madden

Are you thinking about investing in Real Estate? Well you are not alone in this thought. You have taken the first step in getting the education that you will need to start your career as a Real Estate Investor. There are many that are thinking or have thought about Real Estate has the path to creating wealth. They are correct. Most millionaires in history have gained their wealth from real estate in one aspect or another. Two best ways to do this are Fix and Flip or Buy and hold, both of these are ways that you can get into Real Estate investing.

People get worried when there is a slow down in economic trends. They start to read the newspapers, watch news channels or listen to their neighbor. But do not be worried my friends. People are always looking for houses to live in or commercial buildings to locate their businesses in. Only so much land on this great planet. Why don't you make some money off of this land.

Looking for quick cash then you want to fix and flip. Buy a house with either straight cash or have some different financing options that you can work out with the seller, quickly fix up the property and then sell it for a profit. This method is always a good way to easy your way into real estate.

Buy and hold is a long term strategy. It allows investors to have cash flow properties that will help them either quit their daytime jobs or grow their Net worth even bigger. Another great way to get into Real Estate and help you escape the rat race.

-Positive Attitude. Nothing can stop you from reaching your dreams and goals except yourself. You are your biggest fan, have confidence and faith in yourself.

-Always continue to gather knowledge. Be a student of your surroundings. I don't know everything and neither do you.

-Start to network and build a team for all of your deals. This is the best way to have quick answers for any questions you might need answered or just general direction of business operations.

This economic market is a great time to dive into real estate. Prices are low, people are motivated to sell and people are scared to take a leap into the unknown. The "Oracle of Omaha" Warren Buffett himself has said that he would buy 1000 rental properties because of the great value of these properties. So what are you waiting for?

If your ready to take action and reach those dreams and goals you have then check out my website.

http://www.marionwholesalehomes.com

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Independent Investor Misconceptions

With a basic understanding of the investment process and the proper information you can successfully manage your own portfolio. The internet is an excellent source for this type of information and the necessary resources to help guide you through the investment process and assist you in implementing your investment strategy.

You need to take personal responsibility for your own financial freedom.

The investing deck is fundamentally stacked against you as an independent investor.

Stock brokers work for commissions and financial advisors and planners want fees... all at your expense. Whether you profit or not is not their primary goal. Wall Street firms blatantly compromise their retail clients's (independent investor) interests while courting publicly traded companies for investment banking business. The national media is more interested in satisfying their advertisers and subscribers than providing independent, objective investment advice.

In What Wall Street Doesn't Want You to Know, Larry Swedroe says "Wall Street does not have the best interests of investors at heart. Wall Street wants to keep the independent investor in the dark about both the academic evidence on how markets really work and the dismal track record of the vast majority of active managers."

Also, William Berstein writes in The Four Pillars of Investing, "Stockbrokers service their clients in the same way Bonnie and Clyde serviced banks."

You may find these judgments harsh, but there is a basic contradiction of interests here. As an independent investor, you want to earn the highest net returns. Your advisor has a slightly different agenda. He wants you to earn the highest return net of his fees. That's an important difference.

Also, keep in mind:

Most stockbrokers are better salespeople than investment advisors. Virtually everyone on Wall Street - naturally - wants to earn as high an income as possible; unfortunately, That can only be achieved by converting a significant percentage of client assets into their assets.

That's how the investment business works.

This would be perfectly fair if most investment advisors earned higher returns than you could achieve as an independent investor.. But, this is hardly the case.

INVESTOR BEWARE!

Once an independent investor wakes up to the simple fact that many of the financial professionals that they are relying on for investment advice are nothing more than self-serving parties whose overriding interest is separating them from their money... then they can take matters into their own hands and really start to accumulate wealth.

The solution is two fold:

(1) Investment newsletters are the best source of unbiased investment information?

They give advice freely and no one who relies on it has to wonder whether the real motive is to earn fees or commissions or "capture your assets". These financial newsletters can be written without a compliance officer scrutinizing or "watering down" their words. And probably most important, readers don't have to worry about the objectivity of their analysis since they are free of any compromising business relationships.

(2) Once you have impartial, objective investment information you need online trading services, preferably an online discount broker. It's not how much you earn as an independent investor from trading stock online, but rather how much you keep after expenses.

Investment Advisor Representative, Creator, and Owner of http://www.InvestmenTruth.com, a forum for independent investors presenting impartial investment information through weekly stock market commentary, investment tips, and economic events.

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Other People's Money

ByEric A Geiger

The main goal and purpose of a business organization is to produce financial success for those working in it. There are a vast amount of corporations here in the United States and internationally that execute social responsibility purely from a self-interest perspective. For example, businesses may contribute to the community through its political relationships. Politicians influence how business transactions operate and the relationships are important because they are the backing corporations could need.

The argument against this political motivation factor for corporate social responsibility is that these are simply wrong doings. Other would believe that the company's goal should be to conduct healthy business instead of focusing on political or social relationship. This ideology would say that businesses interest should be broader than simply their self-interests.

Companies that do practice corporate social responsibility can feel morally obligated to give back to the community in the area of which their business is conducted. A small mom and pop business could be the sole source of income for the area it is in and giving back to that small community would be considered the ethical thing to do. A larger corporation could hire numerous employees in the area they operate and therefore feel more socially responsible to take care of that area.

The counter argument would be that these corporations pay huge amounts of taxes and therefore are already giving back enough. From a local and state perspective these huge tax dollars corporations pay go directly towards support the community as whole for things such as construction, prisons, schools, roads, etc. A corporation could easily make this argument because their tax dollars come at a huge price and do make improvements.

is a Hollywood film from 1991 with Andrew Jorgenson and Danny DeVito. Concepts explained in the movie are real life depictions of dilemmas that businesses go through. The issue at hand is whether a business is obligated to focus strictly on increasing its stock price.

During the board election speeches scene of the movie Danny DeVito (Lawrence Garfield) counters Andrew Jorgenson (Gregory Peck) by saying that the responsibility of a company is not to please its community and employees and rather it's all about the money. The reason the business started and the shareholders invested is because of the money. He says that this particular business lost sight of the market they are in. The company, New England Wire and Cable, has money but the market, but it is dead. Andrew Jorgenson is making a plea for the shareholders to stay loyal to what is made out to be a family or friend relationship between management and shareholders. Danny DeVito describes how even when times are tough the business did not make changes to help use shareholders money wisely.

A company has to make decisions on whether to focus on future plans and community perspective of the company or stock price. Every company wants to be socially responsible and accepted through its actions, but sometimes these are not the most profitable. CEOs that do choose to aim for higher stock price can be accused of being short sighted. Without a long term corporate structure in place in our country this could turn our economy into depression. These are tough decisions that CEOs have to make in order to bridge the gap between pleasing its shareholders with money and pleasing the economy and country with long term responsible plans.

Danny DeVito explains value of investing in a different scene by analyzing the company's liquidation value versus its market value. He shows how the stock is being sold at a bargain and not showing the true value of what the company is worth. He shows how the lack of relevance of historical based accounting can provide a discrepancy on what stock price should be. If the stock price is higher and represents more of a book capital figure rather than a market capital figure than the return on investments for shareholders is higher. This is the main goal according to Danny DeVito, as the concern for shareholders is all in the money.

This film is a good representation of subjects discussed in intermediate accounting course because we look at the value of a business through its books. As accountants we follow United States GAAP (generally accepted accounting principles) and try to value assets appropriately. Depending on the value of these assets and therefore the value of a company a stock price can be formed. This price gives investors an idea of what the company is worth and gives a guess for where the company is going.

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What Are The Key Advantages To Trading With Binary Options?

ByPhil D Moore

There are many forms of investment that you can use to profit from movements in financial markets. However many of the more conventional means such as Forex trading and Stock trading through brokers prove not only complicated for many, but also require you to have a lot of capital to invest up front in order to be a decent return on your investment. With binary options trading however, you can trade these markets and enjoy many advantages over the more established trading methods. Not only does the hourly nature of many of the binary contracts mean that you won't see your capital tied up for long periods in the market, you can also start to earn high profits without the knowledge that some other forms of trading demand.

The key thing to understand about binary options trading is that it is simple. There is no need to identify big market moves and work out specific times to enter and exit the market. You don't even need to monitor and adjust your positions once you have placed them. Instead all you have to do is identify whether the asset that you are monitoring will go 'up' or 'down' by the time that the agreed contract is due to expire.

The chance to earn high returns from binary options trading is immense. Most contracts that are used pay out on the hour, so you will never be far from knowing if you have profited. This fast pay out time means that you will only need to look for short term moves in the market and look at the very latest news and events in order to have a good chance of profiting. As a result you will be able to get up to speed quickly with this trading method, as well as see gains quickly flow into your trading account.

While many people are put from trading the financial markets due to the inherent risks that are involved, another unique benefit of binary options trading is that your risks are in fact limited. You can only ever use money that has already been deposited into your account for the purchase of contracts so there is no chance of building up any liability on your account. In addition just as your potential profit on a successful contract expiry is fixed at the outset, so too are your risks. If the contract that you purchase ends out-of-the-money, you are liable for no further loss than the amount that you initially purchased the contract for from your broker.

If you want to give binary options trading a go then you will find another major advantage to trading via this method. It is easy to open an account and begin trading. There are few barriers to entry and you won't have to fill out a lot of forms in order to open an account. It is simply a case of filling in a quick online form and depositing your funds. Most brokers will allow you to open an account with a small deposit, sometimes as little as $100 and contracts can be purchased for even smaller sums. This is great news for the new trader who can start to explore binary options and gradually build up both their exposure and their profits as their confidence quickly grows.

To find out more information about the unique benefits of binary options trading visit us now at http://www.binary-brokers.com

You can also read about the binary options trading brokers and find the best sign up deals for starting trading.

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What Investments Have the Best Return - The Hidden World of Derivatives

ByBeau Morton

In a discussion of what investments have the best return, the hidden world of derivatives makes a strong case to take the title.

It may sound like a very complicated term, belonging to the jargon list of the world of finance and economics, but derivatives in action are nothing more than underlying processes of turning base funds into bigger denominations, via the process of gearing in a credit transaction.

A lot of money, which is in circulation in the world, does not exist physically but rather exists in the electronic world. This money exists only on computer screens and on automated teller machine screens and this is the modern-day fiscal system which is very different to that of times gone by, where every dollar in circulation was represented by a physical asset in federal reserve banks.

But what does all of this mean to someone who wants to get the best return on investment from their endeavors?

It's very simple really, in concept at least, but it can be put into practice and you can get a lot of capital gains out of this concept.

Because of this flawed system of managing the world's finances, an illusion of scarcity is promoted by the big banks of the world and this illusion trickles down to all subsequent financial institutions and eventually infiltrates the market.

This scarcity is nothing more than propaganda though, as there is actually an abundance of money doing the rounds in the world, especially since the world has become more of a globalized place and most of the money exists in digital format.

If the entire world went digital and only used electronic money, there would never be a shortage of money, in any place on earth, because the world of digital currencies doesn't deal in the here and now -- it deals with promises of future payment.

Think about it -- if you log into your internet banking account and you have a certain amount of money on your screen, as your balance, is that money physically in your possession?

No it isn't and, if you transfer some money to someone else's account, you are effectively handing them an I OWE YOU, which is secured and guaranteed by your bank. You are essentially handing your payee a promise that your bank will pay them their money whenever they need to withdraw it and this is where the derivatives market makes a killing.

If the person you have "paid" does not physically draw the money now appearing as a promise in their account, and decides to go the same route as you, transferring some of it electronically to someone they owe, the cycle repeats itself and the original amount of physical money is now geared into a lot more of electronic money.

How do you take advantage of this though?

If you have money to invest, get into the business of money, which is the underlying business of any setup that offers products and services, but also offers credit to its clients.

If you have a facility where you can offer credit to anyone, provided you are sure they can pay it back in future, you can make use of the process of gearing in the derivatives market and sell futures to other creditors.

Imagine doubling your money every week with no or little risk! To discover a verified list of Million Dollar Corporations offering you their products at 75% commission to you. Click the link below to learn HOW you will begin compounding your capital towards your first Million Dollars at the easy corporate money program. http://www.dollarmultiplierguide.com

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What Investments Have the Best Return - The Internet As an Investment Option

ByBeau Morton

Coming to the issue of what investments have the best return, looking at the internet as an investment option is something more and more people are looking into rather closely as it has so many facets to the channels which pose as investment opportunities.

It starts with the internet itself, as the actual investment. A lot of Internet Service Providers (ISPs) are sub-contracting their services, making it very easy for anyone else to become a reseller and thus an ISP themselves.

This is a very elaborate market with just about everything done for you, all you'll essentially have to do is solicit clients. You simply pay a joining fee in most cases, followed by a monthly service fee, which covers your operational costs, such as the online mechanism through which to handle the operations of your clients, like customer care and billing.

In most cases, you can also re-brand your control panel, to bear your own logo and company or business information, so as to uphold a professional structure that indicates to your clients that you are the main man (or woman) behind the operation.

This investment takes the hassle out of having to go out and get an ISP operational license, or investing directly in infrastructure -- all you do is plug-in to the existing structures of the main ISP and represent it as your own to your clients.

Soliciting clients is just about the hardest part of the equation, but it isn't hard at all as there are many ways through which to do so.

Simply listing with existing IT and computing business service providers, in an agreement that they add your ISP service to their list of services, will bring in a lot of passive clients. Of course, this may eat into your profits but you will have to negotiate the best split deal with the IT business you want to liaise with.

If you are a pure salesperson then that part of the job will be easy.

Now, that covers the internet itself, as a service or end-user product, as an investment, but there are ways in which you can make use of your own internet connection to invest your money for the best returns.

Remember that the internet is nothing but a virtual representation of the real world, where people and business are connected to each other, the only difference is that the internet offers a platform for the facilitation of the interactions done offline, to be completed up to 100 times faster and more. This means that you can earn money 100 times faster, and more, if you take your investments online.

Online investments include a variety of different ventures, including joint venture capital funds, shares trading, electronic commerce and the simple act of facilitating products and services.

If you are to go into electronic commerce, as your choice of online investments, it wouldn't be a bad path to take as a lot of joy can be extracted from that and the start-up costs are nowhere near what you'd consider to be bank breaking. Just remember that you need to find the right product or service to offer, and the best are those that are easy to procure, such as digital media.

Imagine doubling your money every week with no or little risk! To discover a verified list of Million Dollar Corporations offering you their products at 75% commission to you. Click the link below to learn HOW you will begin compounding your capital towards your first Million Dollars at the easy corporate money program. http://www.dollarmultiplierguide.com

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