Why to choose stock investment?

If you are interested in learning the fundamentals of investing, you have come to the right place. My primary objective is to educate the people how to invest in the stock market and other investment opportunities and to grow your money 2-3 times faster than other conventional investment options like saving or postal or fixed deposit accounts.

The information here will help you to better understand the stock trading and other investment opportunities which definitely will help you to create your wealth with low risk and high interest.

Why stock investment keeps attracting the small or large investors?

1) Investment is always important to beat the inflation. In short inflation means the depreciation of currency as the time passes and you have to manage your investment in such a way that it could earn interest more than the usual rate of depreciation or currency.

2) This is the only methods of investment in which you can make your money double or even triple in very short span of time may be in year or six months.

3) Liquidity is very high in share or stock investment. By liquidity I mean, you can sell or buy stocks any point of time and it will hardly takes few minutes with your online demat account.

4) Its very handy to maintain your stock and investment funds as you can do it by just clicking your computer and not like other investment. For e.g. to invest in gold you have to go to shop and buy it and in need of cash again go to shop to sell it, see stock investment is very convenient.

5) There are varieties of investment option available as there are different kinds of stocks. For e.g. stock of different companies, different sector of economy and you can shift to any other stock of your choice instantly. This is not possible in other investment like gold or property.

6) The most important and fascinating part of stock investment is, it can be started from lowest amount. For e.g. from $100 onwards you can buy stock or share of any company you like, isn’t it great?

If you think all the above advantages influenced you enough to invest in share or stock investment then just wait for my second post in which I will provide you few tips to choose for right stock with minimum risks and high interest. Till then I will wait for your feedback as how do you like it and if not then why?

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Google’s 4th Quarterly Earnings Report more than Analyst expectation

Google 4th Quarterly Report comes out as a bright spot in the midst of gloomy economy. The Google’s quarterly results encouraged investors and analysts who had been lowering their expectations about Google's performance, as economy's troubles are deepening considerably.Google's quarterly result specifies that search advertising, though not impervious to the economy, continues to look more

Is Stock Market Profitable Business?

With the recent turmoil in the stock market, long term stock investors as well as short term day traders are vigorously asking the question that is there any profit left in this business? Well this can be a million dollar question for many out there who had lost their hard earn money within the span of last one year! But there are still many investors as well as day traders who find the stock

Wall Street End In Green Even After Banks Report Big Losses

Wall Street was managed to somehow catch the positive territory even after the major banks report big losses. Stock Market has really seen an erratic session up yesterday after the news of Bank of America receives government support, while Citi Bank splits operations.Dow Jones industrial average was up by 68.73, or 0.84%, to close at 8,281.22. In the afternoon session, the Dow was down nearly

Ten top investment tips from Warren Buffett

1.
When you know you're the best, you can afford to tell it like it is. Buffett says: "Our insurance business had an excellent year... that party is over. It's a certainty that insurance-industry profit margins, including ours, will fall significantly in 2008. So be prepared for lower insurance earnings during the next few years."
2.
Only four things really count when making an investment (or buying whole companies if, like Buffett, you have $141bn to spend) - "a business you understand, favourable long-term economics, able and trustworthy management, and a sensible price tag". That's investment, everything else is speculation.
3.
Invest this way and you don't need to constantly look for the next "new" thing, with all the risk that necessarily entails.
Buffett's biggest investments (companies he doesn't own in their entirety) include American Express, Wells Fargo, Procter & Gamble and Coca-Cola.
These four businesses, he notes, were founded in 1850, 1852, 1837 and 1886 respectively. "Start-ups are not our game".
4.
Businesses are run by people and the best people are not necessarily the ones with the flashiest CVs. Buffett singles out Susan Jacques, chief executive of his jewellery retailer Borsheims. "Susan came to Borsheims 25 years ago as a $4-an-hour saleswoman. She's smart, she loves the business and she loves her associates. That beats having an MBA degree any time."
5.
Even for a super-long-term investor like Buffett, there's always a time to sell. Berkshire Hathaway bought 1.3pc of PetroChina in 2002 and 2003 for $488m, valuing the Chinese oil company at $37bn when Buffett thought it was probably worth $100bn.
When the China share bubble took its value to $275bn last year, way above its fundamental value, Buffett cashed in his holding for $4bn, an eightfold rise in five years.
6.
Buffett believes incentivisation of managers on the basis of earnings per share encourages disingenuous, if not downright dishonest, behaviour.
Take the assumptions about future investment returns in corporate pension schemes. The average in America is 8pc, despite the fact that a quarter of pension funds are in bonds and cash (for which a 5pc return would be a reasonable expectation) and the rest in equities, which rose by just 5.3pc a year on average over the 20th century as a whole (a remarkable period of growth for the US economy).
Managers don't really believe they'll get 8pc, but pretending they will means they can contribute less and so boost their reported profits. "If they are wrong, the chickens won't come home to roost until long after they retire."
7.
Between 2002 and 2007, Buffett notes, the euro appreciated from 95 cents to $1.37, yet the US's trade deficit with Germany widened from $36bn to $45bn, the reverse of what should have happened.
As long as these imbalances continue, foreigners will continue to buy up America on the cheap. "This is our doing, not some nefarious plot by foreign governments."
8.
Buffett has not lost his eye for witty one-liners which, as usual, make his letters a joy to read. Here he quotes John Stumpf, chief executive of Wells Fargo, on the behaviour of lenders: "It is interesting that the industry has invented new ways to lose money when the old ways seemed to work just fine."
9.
He can see the joke, but Buffett also knows that there is something profoundly wrong at the heart of corporate America.
"As house prices fall, a huge amount of financial folly is being exposed. You only learn who has been swimming naked when the tide goes out - and what we are witnessing at some of our largest financial institutions is an ugly sight."
10.
Investors should be realists but the best are optimists too. Buffett has taken premiums worth $4.5bn from investors buying insurance from him against four major stock markets being lower in 15 to 20 years than they are today.
He's confident he'll hold on to those premiums and in the meantime he'll use the cash to make another small fortune. What a man.

Online trading: Step by Step Guide

If you’re new to shares or need a little help, Money's step-by-step guide prepared by Maria Bekiaris tells you how the internet can make investing easier and cheaper.The internet has changed the way many of us go about our day-to-day lives. For investors it’s made it easier, and cheaper, to invest in shares and funds. There are about 20 online brokers in Australia. Commsec and E*Trade are two of the biggest, now controlling close to 80% of the online broking market, but some of the smaller brokers still have a lot to offer investors. When it comes to choosing an online broker there are a number of issues you need to consider.

Website usability

Let’s start with the website – is it easy to navigate, can you find the things you need quickly?

What it costs

The fees are based on the size of the trades and are usually tiered. Mark Johnston, director of Investment Trends, says it’s important to look at the base price rather than the discount price when comparing brokers. Another thing to look out for is whether a monthly access or subscription fee is charged on top of the brokerage fee. If you think you may need to make trades over the phone, make sure you find out about the price for that too as it tends to cost more.

Trading products

Most brokers let you buy and sell shares listed on the ASX, but it’s worth finding out what other products you can trade. This may include managed funds, options, warrants and international shares.

Trading tools

Find out what tools the online broker has that can help you manage your portfolio and monitor market movements.

Doing your homework

Before making any investment decisions it’s important to do your homework. The more research available on the site, the better off you’re likely to be. You’ll generally get access to news services, ASX announcements, market commentary and regular newsletters. You may even get access to buy/sell recommendations. Some brokers even have regular seminars their clients can attend.

Account requirements

No matter which broker you choose, you’ll need a bank account to settle your trades. Some brokers will require you to set up an account with a particular institution, while others let you use your normal account. Also find out whether you need to make a minimum initial deposit or maintain a minimum balance. It might be tempting to go for a broker with the most bells and whistles, but if this costs more you really should weigh up whether you really need all the extras.

Looking forward

Over the next few months and years we’re likely to see the online broking industry continue to grow and change. “All of the online brokers will be seeking to match one another’s offers,” says National’s Maddock. “Consequently, we can expect increased evidence of CFDs, short selling and retail managed funds appearing as part of online offers.”Infochoice’s Orrock says we can expect continued consolidation, as evidenced by the news in early June that E*Trade had taken over HSBC Stockbroking. Johnston agrees, saying that although there’s already been a fair bit of consolidation in the industry, we’re likely to see more in the future.