Investment

Hot Tips for Investors Purchasing an Apartment

in Investment
Apartment Investing

Achieve the Maximum by Utilizing the Correct Investment Strategy

When considering the purchase of an apartment as an investment property the following tips will help to achieve the most from the investment strategy.

In Australia apartments are generally cheaper than houses. Websites of the Australian Bureau of Statistics and the News.com.au have many charts showing the median prices of houses and apartments in metropolitan areas and regional areas.

Unlike house owners who own the land on which the house is built, apartment owners do not have ownership of the land.However, if the decision is made to buy an apartment as an investment property, then the following should help with the strategy.

It is also common practice for individuals to buy a single apartment in a complex rather than purchase the entire complex. Keep Reading

Buying a House as an Investment – in Australia

in Investment
House investment

How to Make More Money and Get Tax Relief via Home Ownership

In Australia, the home is a growth asset and can be used to make more investments. Plus, owning a home is tax effective.

Owning a home has always been considered the great Australian dream. For the uninitiated or prospective first home buyers, it’s important to know that buying a house is an investment too.

Here’s a quick look at how home ownership can create more wealth and help home owners reap some tax benefits. Keep Reading

Risks Unique to Hedge Funds

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Hedge Funds Risks

Leverage—A Source of Undue Risk or A Way to Increase Alpha?

Some view leverage as one of the main reasons why hedge funds are so risky, while others believe that properly managed leverage can yield excess returns.

Hedge funds use leverage as a regular part of their trading strategies.

In certain cases, such as arbitrage, leverage is the key “ingredient” simply because without it, arbitrage profits would be too small to justify either the cost or the effort. In other words, leverage works as a “profit amplifier” of sorts. Keep Reading

Trading System – MACD Trading Strategy

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Trading System

MACD Signals Trading Strategy

This article provides trading tips to persons looking to include a MACD trading system in their stock, commodity or forex investment strategy.

The MACD technical indicator is generally regarded a lagging momentum indicator. Nevertheless, it can also be used to forecast market turns and pullbacks if applied properly.

In this article readers will learn how to day trade this technical indicator, or just understand its characteristics so it can be included as part of another trading system. Keep Reading

Investing Like Warren Buffet in the Stock Market

in Investment
Warren Buffet

Investment Style of World’s Most Successful Investor – Warren Buffet

Warren Buffet is one of the world’s most successful investors in the stock market if not the most successful investor.

His investment style is simple but not easy to copy

Warren Buffet has accumulated a personal fortune and has also given generously on a massive multi-billion dollar scale.

That personal fortune has been made almost entirely from Stock Market investing and Berkshire Hathaway has an enviable long term record for delivering superior results.

Much has been written about Buffet and his investment style but it is not consistent and Buffet himself has never tried to set the record straight, even in his latest biography.

Warren Buffet Investment Style

There are a number of authors that have written about Warren Buffet’s investment style such as Robert G. Hagstrom, Mark Tier, James O’Loughlin, Janet Lowe, Lawrence A. Cunningham, David Clark, Alice Schroeder and Mary Buffet.

From these there is broad agreement that Buffet’s investment style is:

  • Investing in the stock market is the long term investment in a business, not just buying shares for a fast turn on the market price
  • Value based in approach with a margin of safety, think Benjamin Graham
  • Identifying a business with a clear franchise, such as Coca Cola
  • Focused on his circle of competence. Buffet famously avoided the technology boom and bust because he did not understand the business model and consequently how to value the business
  • Finding great companies. Charlie Munger, Warren Buffet’s long time business partner has apparently strongly influenced Buffet’s style and being prepared to pay for good quality or outstanding companies
  • Focused on a concentrated portfolio of a few businesses, as opposed to a diversified portfolio using concepts from the efficient market theory
  • Being greedy when others are fearful and being fearful when others are greedy. Some of Buffet’s most famous investments have been when particular stocks have fallen on hard times temporarily such as GEICO or American Express

Investing Like Warren Buffet

Investing in a business is investing like Warren Buffet; focused on finding a few great investments that will form the majority of the portfolio:

  • Intrinsic value of a business. A great business, with a strong franchise, is independently valued using business tools such as discounted cashflow. No use is made of complex valuation calculations using equations. No use is made of technical market analysis such as Elliott Wave or the host of other technical chart patterns
  • Margin of Safety. Buy a great business at a good price, typically when a company is experiencing temporary difficulties or is suffering like other businesses from a general market downturn. Buffet has often been quoted as liking to buy 1 dollar of value for 70-80 cents, which represents a margin of safety
  • Limit transaction costs by buying and holding shares for the long term and avoid being overly influenced by short term fluctuations in the share price or overall market

World’s Most Successful Investor

Warren Buffet has been identified by many as the World’s most successful investor.

Whilst he has written many essays and talked extensively to investors including at the Berkshire Hathaway AGM there is still a mystique about his investment style because it is extremely hard to duplicate the results.

The investment style is known – and simple – but it is not easy to practice it. It is even harder to produce similar results. In short, be patient and use market opportunities to buy great businesses at good prices.

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