Navigation tools before investing.

Navigation tools before investing.

Considering recent market events, you may be wondering whether you should  make changes to your investment portfolios. It is concerned

 that investors, including bargain hunters and stuffers, are making rapid investment decisions without considering their long-term financial goals.

While we can’t tell you how to manage your investment portfolio during a volatile market, we are making Investor aware by these tools to make an informed decision. 

Before you make any decision, consider these areas;

1. Sketch personal financial roadmap.

Before making any investing decision, take an honest look at entirse financial situation of your’s.The first step to investing is planning your goals and risk tolerance – more probably on your own or considering with the help of a financial proessional.

There is no guarantee that you’ll make money from your investments in short period of time. But if you get the facts about saving and investing with an intelligent plan, you should be able to gain financial security and benefits of managing your money in entire investment.

Investment process is not an easy task as we think it will be. It takes certain period of time and event of research to invest in any assets of categories.

2. Be  prepare to bear risk.

All investments involve some degree of risk.  If you intend to purchase securities - such as share, stocks, bonds, or mutual funds- it's important that you understand before you invest that you could lose some or all of your money.The reward for taking on risk is the potential for a  

greater investment return. you are likely to make more money by carefully investing with greater risk, like stocks or bonds, rather than restricting your investments to assets with less risk, like cash equivalents. On the other hand, investing solely in cash investments may be appropriate for short-term financial goals.

3. Adapt the mix investments criteria.

With the investment returns that fluctuate  under different market conditions, an investor can help protect against significant losses. Historically, the returns of the three major asset categories – stocks, bonds, and cash – have not moved up and down at the same time.

By investing in more than one category, you'll reduce the risk that you'll lose money and your portfolio's overall investment returns will have a smoother ride.  If one category's investment return falls, you'll be in a position to overlap your losses in that asset category with better investment returns in another asset category.

4.Careful investing heavily in shares and stock.

One of the most important ways to lessen the risks of investing is to diversify investments. It’s common sense: don't put all your eggs in one basket. 

By picking the right group of investments within an asset category, you may be able to limit your losses and reduce the fluctuations of investment returns without sacrificing too much potential gain. 

5.Maintain an emergency fund. 

Most smart investors put enough money in a savings product to cover an emergency event, like sudden unemployment and other possible external environment. Some make sure they have their income in making  their savings in proper manner for future, they know and absolutely be there for them when they need it. 

6.Pay off high interest credit card debt.

There is no investment strategy anywhere that pays off  with less risk than, merely paying off all high interest debt you may have. If you owe money on high interest,            

the wisest thing you can do under any market conditions is 

to pay off the balance in full as quickly as possible. 

 7.Consider cost averaging.

 Through this investment strategy you can protect yourself from the risk of investing all of your money at the wrong time by following a consistent pattern of adding new money to your investment over a long period of time. By making regular investments with the same amount of money each time, you will buy  more of an investment when its price is low and less of the investment when its price is high.

 8.Consider rebalancing portfolio occasionally. 

Rebalancing is bringing your portfolio back to your original asset allocation mix. By rebalancing, you'll ensure that your portfolio does not overemphasize one or more asset categories, and you'll return your portfolio to a comfortable level of risk.

9.Stick with Your Plan: Buy Low, Sell High 

 Shifting money away from an asset category when it is doing well in favor an asset category that is doing poorly may not be easy, but it can be a wise move.  By cutting back on the current "winners" and adding more of the current so-called "losers," This forces you to buy low and sell high. 

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10.Avoid circumstances that can lead to fraud.

Scam artists read the headlines, too.  Often, they’ll use a highly publicized news item to lure potential investors and make their “opportunity” sound more legitimate.  Always check out the answers with an unbiased source before you invest. Take your time and talk to trusted friends and family members before investing.

Lessons to be learnt from Facebook's Purchase Of WhatsApp

Smartest among Smart

 Lessons to be learnt from Facebook's Purchase Of WhatsApp

     Facebook is acquiring WhatsApp, a company with at most $300M revenues, and 55 employees, for $19billion.

      In today’s globalize world very established, successful companies sell for far lower valuations.  Apple is valued at about 13 times earnings. Microsoft about 14 times earnings.Google 33 times.  These are small fractions of the nearly infinite P/E placed on WhatsApp.

       There is a leadership lesson offered here by CEO Zuckerberg’s team that is well worth learning.

1.React fast to avoid irrelevancy.

      Irrelevancy can happen remarkably fast. Communication requirements have alter the use and impact of things like images, charts and text.  All of these have the potential impact of slowly eroding the value of Facebook.

      Most leaders address  by launching new products to leverage the trend in the market. And Facebook did that.  Facebook managers and technologists not only worked on making the platform more mobile friendly, but developed Facebook’s own platform apps for photos, messaging and all kinds of new features asked by present market scenario.

”Often answers come from the market, not internal effort.”  Yet prove by this event.

       All of these actions were efforts to defend and extend the early leader’s market position. Even though the market is shifting, and trends are developing externally from the company, leadership will tend to look inside for an answer.  Leaders will often ignore the trend, disparage the competition, keep promising improvements to historical products and services.

2.Giving an acquisition independence is critical.

      How will this all be monetized into $19B?  The second brilliant leadership call by Facebook is to not answer that question, because nobody really knows.

      Facebook didn’t know how to monetize its early leadership in users, but management knew it had to find a way.Now the company has grown from practically no revenues in 2008 to almost $8B in just below 5 years.

3.    Utilization of money

     $19B is a huge amount of money.  Unless you don’t really spend $19B. Facebook has the blessed ability to print its own currency. Private money that it can use for acquisitions. As long as Facebook has a very high market valuation it can make acquisitions with shares, rather than real money.                                  

By making acquisitions with Facebook shares the leadership team is able to link the newly acquired managers to the same overall goals as Facebook, while offering an extremely high price but without actually having to raise any money – or spend all that money.

Conclusion

       The leaders of Facebook are giving us a lesson in an alternative approach. 

(1)Recognize the market shift.  Accept it.  If there is a better solution, rush toward it rather than ignoring it. (2) Bring it into the company, and leave it independent.  Eschew integration and efforts to find “synergy.”  (You never know, in three years the company may need to be renamed WhatsApp to reflect a new market paradigm.)  

(3) And as long as you can convince investors that you are maintaining your relevancy use your highly valued stock as currency to keep the company moving forward.

Last few coins hits jackpot!

Last few coins hits jackpot!

How do u feel if u get 1$ for free?? It worth more if you are unemployed. Nevertheless, In a country that has 30,000 homeless people. Unemployed in debt and facing another year living on the streets in Hungary, László Andraschek spent his last remaining coins on a lottery ticket.

 One of Hungary's biggest lottery winner’s with a prize of about £1.7m said buying the ticket was a chance decision at a railway station on his way to Budapest for a workshop for recovering alcoholics. Having struggled with alcoholism, Andraschek finally quit five years ago.

Andraschek, plans to use his winnings to establish a foundation for addicts and women abused by their husbands. He  bought flats for each of his three children, paid off the debts of his relatives and is planning to travel to Italy.

After the ironic situation Anikó, said they will invest their money cautiously. "I have become rich but I have not become a different person. I could buy a large-screen TV because I can afford it, but I won't buy three because I can afford it."