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Investment Research
Investment research is a life saver in turbulent economic times marked by financial and geopolitical crises throughout the world. Serious economic problems in the US, Europe and the Middle-East, along with high inflation and bubbles in Asia makes business owners wonder how to invest their hard earned profits to ensure prosperity no matter how the market moves. The first and foremost rule is diversification across industries, currencies as well as countries.
Real estate, a.k.a. the American dream, is in fact the American nightmare if used as an investment tool. Just add up all the costs of owning a house and you will barely break even after you sweat out the 30-year mortgage.
OK, so where should a business put its money? The best investment we can think of is to invest into your own web business. If you do not yet operate on the web, it is time to get into it, however, if you are already on the web, it is time to think of it as an investment rather than as a fancy tool. A web business serves multiple purposes; it is your brand image, it is the place to conduct your operation and to acquire clients, and it is a commodity that increases in value as the web site ages and the business gains more authority. The second best investment is to be part of an existing business that you are familiar with and can monitor frequently. You may buy shares in the business of your accountant, your business advisor, or any other business you are associated with. The immediate liquidity comes in the form of profit share based on the growth as a result of your investment. The third very lucrative investment is to start a new business that can provide services to your main business. For example, if you are a sizeable law firm, you may want to owe your advertising and IT company. The services that these companies provide to other clients would pay for everything you need in your own business, plus a bit of extra profit. Lastly, investing in the stock market can be quite lucrative if it is done well. The truth is that traders who do not make dumb mistakes (the very small minority) make a lot of money no matter what the stock market is doing. Obeying a few rules can make stock investing a pleasant experience; rule no. 1: buy what is cheap, hated and ignored; rule no. 2: use fundamental as well as technical analysis; rule no. 3: protect your positions with sensible trailing stops; rule no. 4: enter into each position with a small amount of money and increase your holdings gradually (learn about Darvas boxes); rule. no 5: try to buy on a dip; rule no 6: do your own research and do not listen to the chatter in popular media.
If you are serious about asset and wealth management, we strongly recommend investing into your on web business. If you want to take advantage of our investment research, please feel free to contact us for a free consultation.
Investing is a negative sum game: one wins, another looses and the middle man takes a fee from both of them. The second rule is to obey important principles: the investment should be low cost, it must have a low and controllable risk, it should be liquid at all times, and it must provide a good return on the investment. The third rule is to know what not to do, i.e. what types of investments to avoid. These are easy to identify: anything that the popular media and the commercials want you to buy needs to be avoided. Two examples are mutual funds and real estate. Mutual funds are lousy investments: they are expensive, the majority badly under perform, and the return is substandard at best.
Last updated: 7/22/2011
