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Best Quotes About Investing

Robert Blossom — Wed, 04 Jan 2012 21:21:54 +0000

Investing represents a major component of our economy. Without private and business investors, many companies and people would not be where they are today. Whether they buy gold coins or invest in new technology, many people have things to say about investing and we have captured just a few of these insightful quotes.

Warren Buffett has made millions through wise investments so it is no surprise that he wanted to lend his advice to the rest of us. “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful,” he said. Perhaps even more profound are his investment rules: “Rule No. 1: never lose money. Rule No. 2: never forget rule no. 1.”

Donald Trump managed to build an empire from scratch, something many of us try to do. He told the world, “Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you’re generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don’t make.”

Getty Oil Company founder J. Paul Getty did not hold anything back when he said, “Money is like manure. You have to spread it around or it smells.” We would be smart to listen to him, as he was once the richest living American and richest private citizen. Mr. Getty was worth over $2 billion at the time of his death in 1976.

Famous investor George Soros has said much about the industry. This includes the rules of the game, where “It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” Warren Buffett had this to say about investing: “If past history was all there was to the game, the richest people would be librarians.”

Who Is Jim Cramer?

Robert Blossom — Wed, 14 Dec 2011 21:16:52 +0000

If you have ever watched CNBC, you have probably heard of Jim Cramer. This American television personality hosts the show “Mad Money,” an in-depth review of stocks and the financial markets. A former hedge manager, Mr. Cramer believes that a bull market can always be found and he helps viewers find it.

Viewer calls, guest interviews, and the lively antics and opinions of Mr. Cramer are regular features of the television show. Anyone who wants to learn which stocks are hot and when to buy gold coins will get answers by watching “Mad Money.” The financial guru serves as a personal guide to Wall Street investments, making anyone feel confident that money can be made.

Mr. Cramer serves as a markets commentator for multimedia financial site TheStreet.com, which he co-founded. Viewers can also frequently see him on “Squawk on the Street,” another CNBC show that airs Monday through Friday from 9 to 11 AM Eastern Time. In his spare time, Mr. Cramer is an author and he published his most recent book, Jim Cramer’s Getting Back to Even, in October 2009.

As the owner/founder and senior partner for Cramer Berkowitz, this financial wiz managed to achieve a 24 percent compounded rate of return after fees for a period of 15 years. In 2001, he retired from his well-known hedge fund, ending with one of the most outstanding records in the industry, including an over 36 percent year in 2000.

In addition to being skilled in financial markets, Mr. Cramer has a law degree from Harvard Law School. His writing career is long, stemming from his launch of American Lawyer magazine and writing about stock market issues for The New Republic when he worked at Goldman Sachs. To learn how to turn bear into bull, watch “Mad Money” Monday through Friday at 6 PM and 11 PM Eastern Time.

Who Is Benjamin Graham?

Robert Blossom — Wed, 30 Nov 2011 21:13:21 +0000

Though the American investor Benjamin Graham is no longer with us, his influence continues. Considered the father of value investing and security analysis, his methods and ideas struck chords with Warren Buffett and other wealthy modern-day investors. Mr. Graham committed his ideas to writing, penning The Intelligent Investor and Security Analysis, two of the most well-known books on investing.

Value investing is the practice of choosing stocks of companies that are undervalued by the market. Mr. Graham was an expert at investing with a margin of safety. Investors using this strategy purchase stocks with deflated prices and profit when these stocks increase in value. The subjective nature and the difficulty estimating intrinsic value make this approach challenging.

Expecting volatility and profiting from it were part of Mr. Graham’s philosophy. Stock investing by its nature is volatile and even those who buy gold coins expect a small amount of volatility in the price of gold. According to Mr. Graham, smart investors view market downturns as opportunities to discover great investments. His famous Mr. Market character, the imaginary business partner to an investor, was developed around this concept.

The legendary investor believed that others participating in the market should identify the type of investor they are. There are active and passive investors and there are speculators, who are not really investors at all. People should determine whether they are willing to commit energy and time to become active investors or instead exert less effort and be content with passive returns.

In one of his books, Mr. Graham states that investments are most intelligent when they are most businesslike. His former Columbia Business School student, Mr. Buffett, considers these the most important words ever written about investment. Mr. Buffett said that Mr. Graham wished each day to do something generous, something creative, and something foolish and was best at the first act.

Who Is Peter Lynch?

Robert Blossom — Wed, 16 Nov 2011 21:07:23 +0000

Peter Lynch is a famous U.S. Wall Street stock investor who started with Fidelity Investments an intern in 1966. He officially began his career there after receiving his M.B.A. from the Wharton School at University of Pennsylvania in 1968. Mr. Lynch remained with Fidelity for his entire career and still serves as research consultant for the organization.

In 1977, Fidelity named the up-and-comer the manager of an obscure portfolio called the Magellan Fund. From that year through 1990, Mr. Lynch managed the fund, achieving historic results. Assets that started at $20 billion increased to $14 billion by 1990. Even more impressive was the fact that Mr. Lynch beat the benchmark S&P 500 Index in 11 of the 13 years he managed the fund, resulting in a 29 percent average annual return.

Industry followers describe this investor as a “chameleon” due to his ability to adapt to various investment styles. When selecting stock, Mr. Lynch adhered to eight fundamental principles. These are: know what you own, avoid long shots, identify, recognize, and buy good businesses, explain reasons for buying before making a purchase, consider it futile to predict interest rates and the economy, be humble, flexible, and learn from mistakes, and recognize that there is always something to worry about.

Mr. Lynch invested in companies that did what he was familiar with or could understand easily. He focused on fundamentals of the company and invested for the long-term. His beliefs and advice are captured in his books, which include Learn to Earn, One Up On Wall Street, and Beating the Street.

In 1993’s Beating the Street, Mr. Lynch discussed gold, writing that it has not likely “seen its last hurrah.” He predicted that supply would dwindle and the fact that exploration was restricted would create a nice situation, though he predicted it to come a bit earlier. Increasing inflation would lead people to buy gold coins and jewelry as a hedge, he wrote.

Investing Apps For Android

Robert Blossom — Wed, 09 Nov 2011 21:04:38 +0000

The almighty Android phone continues to reign supreme in the smartphone market. These phones are popular for both business and personal use. Their many available apps make them perfect for people who want their phones to do much more than make calls. Whether you dabble in the stock market or make investing your job, there are investing apps for Android phones that can help.

Google Finance is one of the best apps because it nearly mirrors the Web site of the same name. Included are market summary information, the most recent finance news, and the ability to search for a stock by ticker symbol or company name. Anyone with a Google Finance account can sync the details of their portfolio to this user-friendly, easily readable app.

Bloomberg offers an Android app that includes real-time quotes for stocks, government bonds, commodities, and currencies. The global focus makes this app perfect for those who play in a larger investing sandbox. Breaking business news is posted throughout the day and the app is simple to navigate, no matter what you are trying to do.

Yahoo! Finance features data that is essential to developing price charts and conducting investment analysis. Similar to Google Finance, this app brings a Web site to your Android phone. Market indexes like NASDAQ and NYSE, stock quotes, company news, and industry happenings are all at your fingertips. Yahoo! Daily Ticker video is also available to Android users via this app.

If the ability to buy gold coins is not a daring enough investment and you are dabbling in the market, research is essential. Morningstar has taken its research tools mobile with its Android app. Users can review performance data, star ratings, expenses, and details regarding the top holdings within a mutual fund. This app provides all this and more for approximately 8,100 mutual funds and exchange-traded funds.

Who Is George Soros?

Robert Blossom — Wed, 02 Nov 2011 21:04:12 +0000

Considered one of the most successful financiers in the world, George Soros had humble beginnings in Budapest, Hungary. He saw some hard times in his youth and emigrated to England when he was 17. After holding jobs in other fields, he obtained entry-level employment with Singer & Friedlander, a London merchant bank. Mr. Soros moved to New York City in 1956 and served as an arbitrage trader and then an analyst.

His investment career began in 1963 and by 1967, employer Arnhold and S. Bleichroder established the offshore investment fund First Eagle at his request and let him run it. Investment regulations proved too restrictive by 1973 and he resigned to create a private investment company. This eventually became the Quantum Fund, a privately owned hedge fund established with fellow investor Jim Rogers. In 1992, this fund broke the Bank of England, forcing the devaluation of the pound and netting Mr. Soros a $1 billion profit.

As an author, his writings mainly deal with the concept of reflexivity. This holds that individual bias enters market transactions and can change the perception of economic fundamentals. These changes are usually marked by disequilibrium, he believes, situations during which conventional economy theory regarding the market does not apply.

In the first quarter of 2011, Mr. Soros made headlines by dumping nearly $800 million in gold. These investments comprised approximately ten percent of the $8.4 billion Soros Fund Management portfolio. As gold prices continue to rise, one wonders whether Mr. Soros may find it worthwhile to buy gold coins or stock.

Soros has said that the only reason he is rich is because he knows when he is wrong. As of February 2009, he believe that the global financial system had disintegrated and there was no indication that the bottom had been reached. He does not believe a short-term resolution is available. Despite this, he is still standing strong, listed as the 35th richest person worldwide on the Forbes list of billionaires.

Who Is Jim Rogers?

Robert Blossom — Wed, 19 Oct 2011 20:55:02 +0000

Investment veteran Jim Rogers has been in the news lately. On Monday, he informed Reuters Insider that he believes the credit ratings of the UK and some countries in the eurozone will be downgraded over the coming months. Mr. Rogers thinks global debt problems will only worsen and additional quantitative easing is the solution. This is not to say that he agrees with such action- he would rather see people forced to go bankrupt.

Just who is this outspoken investor causing such a stir? Well, he co-founded the infamous Quantum Fund with the world-renowned George Soros. In 1996, Mr. Rogers created RICI, the Rogers International Commodities Index, a dollar-based composite, total return index. RICI is considered one of the most diverse commodities indexes, calculated from 37 commodities trading on 13 international exchanges.

An outspoken supporter of the free market, Mr. Rogers believes that the distribution, price, and use of goods, labor, and services should be free of state intervention. At the age of only five, he entered the business world by gathering empty bottles from baseball games and selling peanuts. After graduating from Yale in 1964, he landed his first Wall Street job.

The Quantum Fund he co-founded in 1973 is considered one of the first funds that was truly international. In its first ten years, this portfolio gained an amazing 4,200 percent, while only a 47 percent increase was experienced by the S&P. Mr. Rogers announced his retirement in 1980 and took a motorcycle trip around the globe.

In addition to motorcycle journeys that have landed him in the Guinness Book of World Records twice, Mr. Rogers serves as a Columbia University guest professor, television moderator and guest, and author. He now resides in Singapore, advocates careers in natural resources, commodities, and raw materials, and recently released a new index called The Rogers Global Resources Equity Index.

What Is The SEC?

Robert Blossom — Wed, 21 Sep 2011 20:46:30 +0000

The U.S. Securities and Exchange Commission, or SEC, is an official federal agency created to protect investors, facilitate capital formation to sustain growth, and maintain efficient, fair, and orderly markets. As more investors enter the market and securities exchanges mature, the role of the SEC becomes more prominent. Within the world of banking, the federal government guarantees deposits.

Securities, however, can lose value so there are no guarantees in the investment world. Rules and laws regarding the securities industry are based on the idea that investors should have access to basic information regarding an investment before they purchase it and while they hold it. The SEC requires that publicly traded companies disclose this information to the public.

The SEC is also responsible for overseeing the key players in the securities arena. These include securities dealers and brokers, securities exchanges, mutual funds, and investment advisors. The agency focuses on fraud protection, maintaining fair dealing, and promoting disclosure of critical information related to the market. It also has enforcement authority regarding securities laws. This enables it to bring hundreds of actions against companies and individuals each year.

Despite its role of primary regulator of securities markets in the U.S., the SEC works with Congress and other federal agencies and departments, self-regulatory organizations like stock exchanges, private sector organizations, and state securities regulators. The Chairman of the SEC is a member of the President’s Working Group on Financial Markets. The Chairman, four Commissioners, and their staff interpret laws, issue and amend rules, and oversee relevant organizations while coordinating U.S. securities regulation with state, federal, and foreign authorities.

The SEC was created after the October 1929 stock market crash. The laws that led to its establishment were developed to restore investor confidence in the capital market. Clear rules regarding honest dealing and the provision of reliable information were at their core and these remain the goals of the modern-day SEC.

Where To Learn About The Stock Market

Robert Blossom — Wed, 31 Aug 2011 22:44:35 +0000

Ah, the stock market, that roller coaster ride of financial investment. Lately, the ride has been more like a free-fall, but things are bound to improve. The market is like one big casino, with everyone playing to win. Money takes on a different meaning when it is won or lost in a single stock trade. Playing this game successfully requires a solid education regarding stocks.

MarketWatch from The Wall Street Journal offers a great online tutorial about investing in the market. In addition to stocks, consumers can learn about bonds, mutual funds, options, and more. There is even a financial section for children. A glossary of financial terms serves as a reference for both novice and experienced investors. The MarketWatch Adviser section features articles and general investing tips.

The MarketWatch tutorial recommends further education through the site run by the Securities and Exchange Commission (SEC). The SEC Investor Education Program helps retail consumers invest wisely and protect themselves from fraud. An introduction to the markets, the role of the SEC, investing basics, research, management of investments, and calculators and other tools are included.
Stock exchanges are the site of the action and also a great place for consumers to find information about stock trading. Some of them also offer free investing seminars. A visit to the Web sites of the American Stock Exchange, NASDAQ, and the New York Stock Exchange is recommended.

Books and articles are great sources of information whether you want to buy gold coins or invest in stocks. Stock broker accounts sometimes feature free simulators that allow consumers to trade using fake money. A friend or family member with market experience can become a stock investing mentor. By listening to and asking questions of a pro, anyone can go from newbie to veteran in no time.

Investing Apps For the iPhone

Robert Blossom — Wed, 24 Aug 2011 22:50:09 +0000

Anyone with an Apple iPhone has a wealth of information at the fingertips including apps for finance and investing. Experts rank the best ones, giving a boost to the developers of these useful tools. Whether you want to track the movement of your stocks check or the price of gold to buy gold coins, these apps help you do it.

The best of Yahoo! Finance comes to the iPhone in the form of a free stock app. Users can research stocks, manage a watch list, view relevant videos, and much more. Anyone with an E*TRADE account can use the free E*TRADE Mobile Pro app to connect to the account for trading day or night. Experts rank this as the best mobile app from a stock broker.

CNBC is a primary source for investment news and with the free CNBC Real-Time app, users can access real-time quotes prior to, during, and after market operating hours. Charts, CNBC video clips, and watch list management are a few of the other features. Anyone who has multiple online broker accounts will appreciate the ability to manage them from one location using the free Wikinvest Portfolio Manager app.

Without Bloomberg, we would be relatively uninformed regarding the international market. This is by far the best app for market news on a global level. The home page can be customized for any headlines within any Bloomberg category or any market. Forbes furthers investor knowledge with its free Intelligent Investing app that features articles, videos, market commentary, and forecasts.

The free iPhone app from Morningstar focuses on mutual funds but also includes information regarding stocks. Weekly fund and stock picks are provided, as are helpful investing ideas. For those who participate in the forex market, FX 360 is the app to use. It features real-time quotes and the latest commentary and news regarding foreign currency.