Archive for December, 2009
Possible Mortgage Options For 6-12 Unit Apartment Buildings???
Posted by: | CommentsMyself with 2 other guys want to start investing in properties to hold for a long term. The hard part is we can’t come up with a 20% down payment as the buildings we are looking at (suburban Chicago) range from $550K to $900K. What “creative” financing options are out there???
Should I Start Etf Trend Trading Or Wait For The Next Big Thing?
Posted by: | CommentsLately, a lot of people have been showing an interest in etf trend trading. But before you decide to try out trading etfs for yourself, it is crucial that you have a strong understanding as to what these funds are and the type of return that you can expect to get off of one of these funds as well.
ETF is an abbreviation for the funds original name which is exchange traded fund. These funds are openly traded on all the different stock exchanges (so they are not exactly new to the investment game). A lot of people choose to compare these funds to stocks.
The funds hold assets in the same respects as stocks and bonds are set aside to do. The funds are down through an index, this feature is actually different then with trading stocks.
The funds are highly attractive to anyone who has been looking for an inexpensive way to get involved in the stock market. Many people live the fact that the funds are not only considerably cheaper to buy and start trading but they offer great tax efficiency and they encompass a lot of the same features as stocks.
Trading the funds offers you an interest in a pool of different securities, that many stocks simply do not encompass. These funds are usually compared to mutual funds and stocks on a daily basis. Although they bare similarities to both of these investment options they are different in their own respect.
Etf’s can be bought and sold throughout the day just like many stocks and bonds are purchased. There are a lot of clear reasons why etfs are considered the new age way of investing, however let’s review over some of the most talked about features of the fund to give you a better understanding as to what owning an etf can do for you.
The funds can be purchased for a lower price than you would purchase a stock or a mutual fund. Something that many people do not know about mutual funds is a lot of carriers of the funds will turn you away if you do not have an investment that at least totals up to $1500.
You can obtain an etf for as low as one hundred dollars in many respects. However, as you may already know the more money that you put down to start your investment trading the better return you can expect to generate. But, to get your foot into the door you do not have to have a mass amount of money.
Showing etf trading on any investment portfolio says a lot for a veteran and even a new trader. The etf market is extremely diversified so there are always different funds that you can investment it to increase your capital gain.
Another great attribute about the funds is the fact that you will always be aware of how much money your fund is generating. In fact, you can check on the amount of money that you have in your fund at your own leisure throughout your day.
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What Do You Think Of This?
Posted by: | CommentsI’m a sports fan and I notice that sometimes some people go too far when it comes to the games they watch.
I can understand if you’re an actual player and you’re paid millions to do a job and you’ve invested years of your life in training for the sport that you play, but if you’re just a spectator that sits on the sofa while you watch you’re team on TV, then it shouldn’t be as huge of a deal that people make it out to be.
Remember the Steve Bartman incident with the Chicago Cubs?
It’s okay to be upset with the guy, but to give him ACTUAL death threats? That’s ridiculous.
I find it odd that when people become TOO obssesed with Star Trek or Warcraft, there are people that won’t hesitate to call them losers. But, when you have people who devote their life to a sports team, they get a pass.
Don’t get me wrong, I’m a sports fan too, but I draw the line at places.
I’m just talking about the minority of sports fans that make us look bad.
14th Motilal Oswal Wealth Creation Study : Winner Categories & Category Winners
Posted by: | CommentsThe 14th Motilal Oswal Wealth Creation Study was held on 17th Dec -2009. Mr. Raamdeo Agrawal, Managing Director of Motilal Oswal Group, commissions an Annual Wealth Creation Study every consecutive year. The Motilal Oswal 14th Annual Wealth Creation Study (2004-09) is divided into three parts i.e. Wealth Creation Theme: Winner Categories + Category Winners = Formula for Wealth Creation in the NTD Era, The Wealth Creation Study Findings & Market Outlook.
Wealth created is a term which is calculated as change in the market cap of companies between 2003 and 2009, duly adjusted for corporate events such as mergers, fresh issuance of capital, de-mergers, buyback, etc. Wealth Creation Study findings is an analysis of the top 100 wealth creating companies during the period 2004-09.
Five companies – HDFC, Sun Pharma, Reliance Inds, Hero Honda and Infosys – featured among the top 100 wealth creators in each of the last 10 years. HDFC was ranked as the most consistent by virtue of its 10-year price CAGR being the highest. Unitech was the Fastest Wealth Creator in FY09, for the second time in a row. Its 5-year stock price CAGR is a staggering 122%. Reliance Industries emerged as the biggest wealth creator for the third time in a row. It created 1514 billion RS worth of wealth contributing 15.6% of total wealth created in FY09.
This year’s wealth creation study saw A Winning Formula For Wealth Creation as their major theme.
A blend of Categories benefiting from India’s Next Trillion Dollar GDP opportunity & their Scalability was the formula for Winner Categories. The formula used for the winning investments was the combination of the category winners & the respective reasonable valuation. The formula for category winners was the combination of the winner categories, the entry barriers & the great management. A combination of the Winner Categories & the Category Winners was the most important recipe for the Wealth Creation Study.
Winner Categories: India’s NTD Era will witness a huge boom in savings/investment & consumption, which will throw up several Winner Categories i.e. those which are consolidated in nature, and which grow at over 1.5x GDP growth rate. The study identifies 21 Winner Categories which are Real Estate, Retailing, Alcoholic beverages, Auto – 2 – wheelers, Auto – Cars & SUVs , Auto – Tractors, Capital Goods – Power equipment, Construction, Engineering – Turnkey, Finance -Banks & Private sector, Finance – Banks & Public sector, Finance – Brokerages, Finance – Credit rating, Finance – Housing, FMCG – Personal Care, FMCG – Processed Food, Gas distribution, Infrastructure, Insurance, Media – Entertainment , Telecom.
Category Winners: These are companies from Winner Categories, which possess high Entry Barriers and great managements. Being able to do what rivals cannot is the definition of competitive advantage. Entry Barriers is a simpler term for sustainable competitive advantage – The existence of barriers to entry means that incumbent firms are able to do what potential rivals cannot. Great management is one which successfully defends or even increases Entry Barriers and manages growth at least in line with category.
Winning investments: The category winner in Auto (2 wheelers) was Hero Honda, Auto (Cars & SUVs) was Maruti Suzuki, Auto (Cars & UVs/tractors) was Mahindra & Mahindra, Capital Goods (Power equipment) was BHEL. Category Winners are those that at reasonable (not necessarily cheap) valuation create significant wealth over the long term. The study constructs a model portfolio for the NTD Era, based on the above principles. This portfolio would have outperformed the markets if purchased any time during the last five years.
The category winner in Finance (Housing) was HDFC, FMCG (Personal Care) was Dabur India, FMCG (Processed food) was Nestle India, Engineering (Turnkey) was Larsen and Toubro, Finance (Banks & Private Sector) was HDFC Bank, Finance (Banks & Public Sector) was SBI, Infrastructure was Mundra Port, Media (Entertainment) was Sun TV, Retailing was Pantaloon Retail & Telecom was Bharti Airtel, Finance (Credit rating) was CRISIL.
To conclude, the NTD Era will be marked by sustained boom in discretionary spend, savings and investment. Winner Categories and Category Winners will enjoy exponential growth in profits. Category Winners bought at reasonable valuation will create significant wealth over the long term.
Interested in finding out more about the NTD Era? Log on to Motilal Oswal Securities Ltd. and know more about the Motilal Oswal 14th Wealth Creation Study
Trader Trainee?
Posted by: | CommentsI am interested in becoming a trader trainee, in Chicago. I am a senior economics major. I am extremely well read in books on economics, trading, investing & history. I paper-trade extensively online. My interest in trading is extreme and would consider it a dream job.
Does anyone knows a trading firm in Chicago who would like to snag some fresh raw talent & reel me in as I complete my education?