HOW TO START SAVING AND INVESTING WITH A SMALL AMOUNT

THE RICHEST MAN IN BABYLON

THE NEW YEAR IS AROUND THE CORNER, AND THE TIME HAS COME TO HAVE NEW GOOD RESOLUTIONS. ONE OF THESE RESOLUTIONS SHOULD BE TO DO SOMETHING FOR YOUR FINANCES. SO, ONE WAY TO DO IT IS TO PUT 10% OF ALL MONEY YOU RECEIVE TO SAVINGS. FOR YOUR PERUSAL AND ENTERTAINMENT, DOWNLOAD AND READ THE BOOK “THE RICHEST MAN IN BABYLON”. I HAVE INSERTED A LINK TO THAT BOOK ON TOP OF THIS ARTICLE. FOLLOWING IS AN EASY WAY TO SET ASIDE THE MONEY, USING MTN MOBILE MONEY.  Continue reading “HOW TO START SAVING AND INVESTING WITH A SMALL AMOUNT”

US STOCKS ARE GOING DOWN – WHAT SHOULD INVESTORS DO?


THE INTELLIGENT INVESTOR

 

THE US STOCKS HAD A VERY BAD DAY YESTERDAY. ALL MAJOR INDECES LOST MORE THAN 3%. ON TOP WAS THE NASDAQ – THE TECH MARKET – THAT LOST OVER 4%. WHAT ARE THE REASONS, AND WHAT IS  THERE TO DO AS INVESTORS?
Continue reading “US STOCKS ARE GOING DOWN – WHAT SHOULD INVESTORS DO?”

CHOOSE YOUR INVESTMENT WISELY

FUNDAMENTAL ANALYSIS COURSE

WHEN PEOPLE WANT TO INVEST IN STOCKS OR BONDS, THEY OFTEN LOOK AT CERTAIN INDECES (1) . WHEN CERTAIN INDECES GO DOWN, THEY BUY, WHEN THEY GO UP, THEY SELL. THAT SOMETIMES LEAD TO PANIC PURCHASES AND PANIC SALES. PEOPLE BECOME AFRAID WHEN THE STOCKS THEY BUY GO DOWN, AND THEY ARE HAPPY WHEN THE STOCKS GO UP. THEY BELIEVE THAT MARKETS ARE RATIONAL AND REACT TO ALL INFORMATION THE MARKET GETS. THIS MIGHT BE TRUE, BUT OFTEN THE MARKETS ARE IRRATIONAL AND REACT TO EVERY NONSENSE THAT PEOPLE DISTRIBUTE. INSTEAD OF STARING AT MARKET DEVELOPMENTS, WHAT IS THE RIGHT WAY TO IVEST IN STOCKS AND BONDS?  Continue reading “CHOOSE YOUR INVESTMENT WISELY”

MENZGOLD AND NO END…

IN THE LAST WEEKS, THE GHANAIAN WHATEVER FIRM MENZGOLD HAS AT LEAST OCCUPIED PART OF THE MEDIA. WHATEVER FIRM I SAY, BECAUSE PROBABLY NOBODY KNOWS UNTIL NOW WHAT KIND OF FIRM IT IS. QUESTIONS ARISE WHETHER IT FALLS UNDER THE JURISDICTION OF THE SECURITY EXCHANGE COMMISSION (SEC) OR NOT. NOW MENZGOLD HAS OBVIOUSLY DRAGGED TWO GHANAIAN INSTITUTIONS TO COURT. WE WILL SEE WHAT THE OUTCOME IS. I DON’T WANT TO DEAL WITH JURIDICAL QUESTIONS HERE, BUT ONLY WITH ECONOMICAL AND FINANCIAL ONES.  Continue reading “MENZGOLD AND NO END…”

HOW SHALL I AS INVESTOR HANDLE MY PORTFOLIO?

IF YOU HAVE SOME MONEY LEFT, AND YOU PUT IT IN STOCKS, BONDS AND OTHER ITEMS THAT YOU THINK WILL BRING PROFIT FOR YOU, YOU BECOME AN INVESTOR. THE ITEMS YOU PUT YOUT MONEY IN, FORM YOUR PORTFOILIO. YOU WANT TO MAKE SURE THAT YOUR PORTFOLIO BRINGS THE BEST RESULT. HOW SHOULD YOU HANDLE YOUR PORTFOLIO IN ORDER TO ACHIEVE THAT?  Continue reading “HOW SHALL I AS INVESTOR HANDLE MY PORTFOLIO?”

INVESTMENT LIFECYCLE

JUST LIKE YOU CAN DIVIDE YOUR LIFE INTO DIFFERENT PHASES, YOU CAN “DIVIDE” YOUR INVESTMENT LIFE INTO DIFFERENT CATEGORIES. THE EASIEST WAY TO DO THIS IS TO GENERATE FOUR SEPARATE TIME FRAMES (1):

1) AGE 0-20 (CHILDHOOD; MOSTLY ONLY DEPENDENT INVESTMENT).

2)AGE 20-40 (START AND DEVELOPMRNT OF PROFESSIONAL LIFE, START OF INDEPENDENTNT INVESTMENT, MORE RISKY INVESTMENT).

3) AGE 40-60 (TOP OF PROFESSIONAL LIFE, TOP OF INVESTMENT LIFE).

4) AGE 60-80 AND+ (END OF PROFESSIONAL LIFE, RETIREMENT, LESS RISKY INVESTMENT, MORE SAFE INVESTMENT).

LET US NOW HAVE A LOOK AT THE PARTICULAR STAGES:  Continue reading “INVESTMENT LIFECYCLE”

FINANCE AND INVESTMENT TIP 01/2018

 

IF YOU WANT TO INVEST IN STOCKS (OWNERS OF STOCKS HAVE BOUGHT PARTS OF AN ENTERPRISE) DO NOT RELY TOO MUCH ON PAST PERFORMANCE OF THE COMPANY YOU WANT TO BUY STOCKN (OR ALSO  CALLED SHARES) IN. WHAT HAPPENED IN THE PAST, DOES NOT NECESSARILY GO ON IN THE FUTURE. THAT IS WHY YOU SHOULD NOT RELY TOO MUCH ON SO-CALLED CHARTS. CHARTS ARE GRAPHS THAT SHOW PERFORMANCE OF  COMPANY, ETC. IN THE  PAST. HERE, THE STRESS IS MADE ON “IN THE PAST.

INSTEAD, LOOK AT INFORMATION THAT GIVES HINTS HOW THE COMPANY MIGHT PERFORM IN THE FUTURE. OF COURSE, THAT IS DIFFICULT. ECONOMICS AND FINANCE ARE NOT EXACT SCIENCES.BUT IF YOU REALLY WANT TO DEAL WITH YOUR INVESTMENT YOURSELF, YOU MUST ALSO INVEST SOME TIME. ALSO LOOK AT THE QUALITY OF THE MANAGEMENT OF THE COMPANY. THIS INFORMATION YOU CAN USUALLY GET FROM FINANCIAL NEWSPAPERS AND JOURNALS. A GOOD MANAGEMENT USUALLY  IS ABLE TO PERFORM VERY WELL FOR THE COMPANY.

TO FIND THE RIGHT COMPANY TO INVEST IN, YOU MUST LOOK AT THE QUALITY OF THE COMPANY. LOOK AT THE VALUE OF THE COMPANY; MAKE A VALUE INVESTMENT. ONE OF THE MOST FAMOUS VALUE INVESTORS IS WARREN BUFFETT. HIS FIRM BERKSHIRE HATHAWAY IS WELL KNOWN TO BE ONE OF THE MOST SUCCESSFUL INVESTING COMPANIES. WARREN BUFFETT FAMOUSLY SAID THAT HE WOULD ONLY INVEST IN COMPANIES IF HE UNDERSTANDS THEIR OPERATING BUSINESS FIELD, AND HOW THEY OPERATE.

AS I SAID, DEALING WITH YOUR INVESTMENT IS VERY TIME-INTENSIVE. IF YOU DO NOT HAVE THE TIME, LOOK FOR ADVICE FROM A FINANCIAL PROFESSIONAL.

 

FINANCE AND INVESTMENT TIP NO. 3

AS IN EVERY WEEK, I ALSO PUBLISH MY FINANCE AND INVESTMENT TIP THIS WEEK. HERE IS MY THIRD ONE:

DON’T PUT “ALL YOUR EGGS IN ONE BASKET”; DIVERSIFY YOUR PORTFOLIO.

IF YOU INVEST ALL YOUR MONEY IN ONE INVESTMENT OPPORTUNITY, THE CHANCES ARE BIG THAT YOU MIGHT LOSE ALL YOUR MONEY;
DIVERSIFY YOUR INVESTMENT. Continue reading “FINANCE AND INVESTMENT TIP NO. 3”

FINANCE & INVESTMENT TIP NO. 2

IN RECENT MONTHS – AND YEARS – A NUMBER OF MICROFINANCE INSTITUTIONS COLLAPSED WENT BANKRUPT, OR DAMAGED THEIR CLIENTELE IN A DIFFERENT WAY. THIS OCCURRED OFTEN, BECAUSE THESE MICROFINANCE INSTITUTIONS PAID HIGH INTEREST RATES FOR DEPOSIT, AND WERE NOT ABLE TO COMPENSATE THIS BY DEMANDING HIGHER INTEREST RATES ON LOANS WHICH WERE SUPPOSED TO BE DISTRIBUTED, BUT DID NOT FIND CUSTOMERS.
THEREFORE, MY FINANCE & INVESTMENT TIP NO. 2:

2) DON’T INVEST YOUR MONEY IN ANY PROJECT ORFINANCIAL INSTRUMENT THAT OFFERS YOU 40% OR MORE INTEREST OR PROFIT A YEAR. WHAT SEEMS TO BE TOO GOOD TO BE TRUE, IS MOSTLY TOO GOOD TO BE TRUE.