Posts Tagged ‘Investment Portfolio’

The Wisdom Of Warren Buffett - Part 3

Tuesday, March 9th, 2010

Warren BuffettGlad to have you with us again. We’ve been discussing the wisdom of Warren Buffett and why he’s a smart guy because he likes common sense investment options.

To continue this subject, we’re going to start covering specifics and get into some things you can learn from applying his strategies to your investment portfolio.

Because of the aura Warren Buffett exudes in the media, there’s legions of drones who worship his every move and copy them exactly. While you may see some success this way, it’s ultimately counter-productive and just plain foolish if you don’t realize what the gentleman is doing, and why.

Making Money The Warren Buffett Way

Warren Buffett makes his money by following what he thinks and sticking to the basics based on his own careful observations. You should do this as well by using your mind - and not his, when choosing to invest.

Warren Buffett - The Worlds Greatest Money Maker Pt2

Of course, The Omaha native has good investment strategies, so you should make a conscious effort to learn from them. A simple summarization of Buffett’s stock market philosophy can be found in a humorous and blunt explanation he gave in 1987. Basically, he said, “I’ll tell you why I like the cigarette business. It costs a penny to make. Sell it for a dollar. It’s addictive. And there’s fantastic brand loyalty.” Does that really need any further explanation? The concretes have changed, but the basic idea applies to his entire approach towards investments.

Since he doesn’t jump at rapid changes, Warren Buffett has cultivated a sense of patience that could only try the nerves of the most stout investor. There’s a golden rule to his methodology, in that he’s totally ruthless when it comes to persistence.

If you’re going to start making money in a way that’s guaranteed, you’re going to have to do it the slow, hard - but successful way of investing slowly in timeless industries and waiting it out.

That’s all the time we have for now but part four of the wisdom of Warren Buffett is only right around the corner! While you’re here, read other entries on how your can improve your investments and develop a better success mentality for investing.

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2010

Investing In Gold - Part Seven

Tuesday, December 29th, 2009

Greetings! We appreciate you returning to find out more about gold and how it makes for great investment potential.

Now that we’ve reached the end of this series, you’re going to find out some of the different ways you can purchase this metal and make it a part of your investment portfolio.

Methods Of Investing In Gold

Investing In GoldWhile gold maintains intrinsic qualities that preserve its value between different countries and economies, it nonetheless presents the challenge of choosing how to invest in it.

Hundreds of years ago, investing in gold simply meant few options for traders, merchants, and rulers wanting to maintain wealth. There was only so many forms of it and ways to handle a raw metal.

Nowadays, with the emergence of new technologies, businesses, and models of transaction, there are plenty of ways in which to invest in gold.

Gold Bullion

The most basic example of how to invest in gold is to purchase gold bullion. These bars are of the highest value, and represent the most basic way available today in which to add the strength of gold to your portfolio without fuss or hassle.

However, gold bullion is expensive and requires that you carefully consider its value in relation to the currency you’re dealing with before making the plunge.

Companies and Mutual Funds

Of course, there are other modern ways of investing in gold. You can choose to invest in a gold company or a mutual fund, which can present a great way to gain the value of gold in relation to market performance.

However, if you’re concerns lie with holding physical property, then buying shares in company stock or promises may not be the answer you’re looking for. Gold products represent the real deal, and give you solid material that is exactly what you need when you want to secure value.

Altogether, gold is a great asset for any investor looking to make a strong and dependable portfolio. However, just like anything else, it’s a single commodity, and as such, it should be treated as one of many potential investment options, not as a single answer.

Just like the old saying goes, don’t put all your eggs in one basket. This is just as true regarding gold as it is regarding anything else you can put your money towards. I hope you have enjoyed this series on investing in gold, we will return next week with a new series on successful investment solutions and advice.

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2009

Asset Allocation - Part Seven

Wednesday, November 4th, 2009

Welcome back. Today marks the end of our blog series on Asset Allocation. Hopefully, you’ve learned a number of vital skills that will help you in establishing a functional and profitable investment portfolio.

If nothing else, you should have realised the profundity of the principle that no investment exists solely in a vacuum. Rather, each one has to be considered in conjunction with the investments that support it or hinder it.

When a portfolio is assembled such that all of the investments support and advance one another, you have a strong portfolio that will see you into the future with great success.

If, however, your investments are not properly allocated, they will work against each other and bring one another down, resulting in a legacy of long term losses for your investment portfolio.

Asset Allocation Overview

Asset AllocationLet’s briefly review on what we’ve covered so far during this Asset Allocation series. First of all we established the importance of analysing the risks versus the return for any type of investment that you intend to make. A proper assortment of high risk ventures next to stable investments will ensure that you always have a buffer of income protecting you.

Further, it pays to question the validity of the analysts at times. Never rely one a single method of analysis; they should be just as diverse as your investments.

Next up, you should invest with both your long term and your short term goals in mind. These goals should match up with your investment decisions accordingly.

Starting early is one of the best things you can do. The earlier in life you start assembling a portfolio, the more time you’ll have to develop a truly diverse assortment of investments that will serve you well in any situation.

Lastly, don’t just speculate. If you have a new idea for how to arrange your portfolio so that it will be better allocated, act upon it! You’ll never know how well something will work unless you experiment now and then.

That about covers it, I hope you have enjoyed the Asset Allocation series. Join us next week, when we start a new series on investing in gold.

Until then, happy trading!

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2009

Asset Allocation – Part Six

Tuesday, October 27th, 2009

Welcome back once again to our blog series on Asset Allocation. In this section, we’re going to cover the last of our tips on how to properly allocate your assets to ensure that your portfolio can survive anything the uncertain future might throw at it. In addition to a diverse selection of investments simply being safer, it also increases your potential for profits.

Remember, having a mix of safe investments gives you the buffer you need to really go out on a limb with those high risk ventures when the desire strikes you. Never be unprepared!

Take Action On Your Investment Plan

Our last tip for ensuring that you have a strongly diversified portfolio of investments is pretty straightforward: Act on your plan for investment.

Asset Allocation Part SixToo many people who decide to diversify their portfolio get caught up in the analytical game. Because they’re suddenly looking at so many different types of investments (whereas previously they might have only been following one or two), they’re overwhelmed with a flood of information that they might not be quite equipped to process.

As a result, some people find themselves endlessly speculating as to which safe investments like bonds and mutual funds they want to take part in, looking at the charts for their interest and long term performance, as well as analyzing the five year growths for the stocks they have their eye on. This is practically a full time job in itself and many people never get around to acting on the investment strategies that they’re trying to build up for themselves.

So, be sure that you act as an investor! Take a look at the current state of your portfolio, and see how it’s split up between long and short term investments. Furthermore, make sure you take note of the real potential of each of those investments to make sure that everything is allocated appropriately. Then, once the plan is in place, act on it! If it’s failing, you can always change it later. But you’ll never know unless you try.

Next time, we’re taking to take a quick look back at all of these investing principles and summarize all we’ve learned about Asset Allocation.

See you next week for part 7 of Asset Allocation.

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2009

Asset Allocation – Part Five

Tuesday, October 20th, 2009

Welcome back once again to the Asset Allocation series. In this entry, we’re going to keep looking at different ways to diversify your investment portfolio to make sure that it can stand up to whatever the future might hold.

Remember, the more diverse your investments, the more likely you are to be able to survive sudden changes in the economy; even disastrous events like the collapse of an entire industry!

Start Investing Early On

Asset AllocationAnother key to being able to survive those disastrous events is our tip for this entry: start investing in your portfolio as early as you can. The sooner you begin to invest money, the more you stand to benefit from it. That much is obvious. However, this has some other unforeseen benefits that should be mentioned.

First of all, if you invest early, you’ll stand to make a great deal more off of the compounding interest that is hopefully associated with your safe long term investments. As a result, you’re going the most value possible out of your money, in addition to just simply having the opportunity to invest more of it in the first place.

Time Can Heal Wounds

Secondly, there is the matter that, the longer a span of time you invest over, the smaller each individual year will seem in the scope of things. If you only build up your investment portfolio for a total of five years, and two of those years are quite bad, you might well said that you had a fairly bad run of things overall. Those two years might represent a critical setback and the difference between a hard retirement and a luxurious one.

However, if you had been investing for a full thirty years, those two years wouldn’t seem anywhere near as significant. In fact, if they were bolstered by 28 excellent years of successful investment, you probably wouldn’t remember them at all by the time you reached retirement age.

See you next week for part 6 of Asset Allocation.

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2009