John Paulson famously made a cool US 3.5 billion in 2007. He was among the few who had seen the housing boom was built on sand and bet against it.
How did he see it.
In a Wall street journal interview, I found this Paulson quote
“Where is the bubble we can short?” He was asking his staff. They found it in housing.
I think that is the one example on how to make money. Find a bubble and short it!
In the same interview Paulson gave a vague assessment of the market
He’s also betting against other parts of the economy, such as credit-card and auto loans. He tells investors “it’s still not too late” to bet on economic troubles.
Not to fast that was way back in January 2008.
written by Buffet Stocks
\\ tags: Auto Loans, Bet, Credit Card, Economic Troubles, Economy, Housing Boom, How To Make Money, Investors, John Paulson, Market Predictions, Quote, Wall Street, Wall Street Journal
Warren Buffet is a contrarian investor. So who is a contrarian investor? This article explains / defines a contrarian investor?
Contrarian Investor Explanation from Warren Buffet.
A great way to make money is to go against the crowd. “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful,” Buffett explained in a 1986 letter to shareholders.
To put it simply a contrarian investor is an investor who goes against the popular direction. When the majority are buying into an investment he is busy selling, when the majority are selling he is buying.
So, how does a contrarian investor make money.
When the stock market is unpopular like during a bear market, the value of stocks tend to decline and most investors are selling. This is the time a contrarian investor invests, buyin cheap stocks. When the bull market returns and stocks are popular and everyone is getting in, the demand for stocks pushes stock values higher and higher and this the time a contrarian investor start selling the shares he had bought when everyone was selling.
To make money as a contrarian investor you must have a good timing of the market, be it stock market, bond market, futures market, commodity market and even real estate. You must understand markets work in cycles of bear market and bull market; markets go up and down. Buy during the bear market and sell during the bull market.
written by Buffet Stocks
\\ tags: Bear Market, Bond Market, Buffett, Cheap Stocks, Commodity Market, Contrarian Investor, Crowd, Futures Market, Investors, Letter To Shareholders, Market Commodity, Market Futures, Market Markets, Real Estate, Stock Market, Stock Values, Warren Buffet, Way To Make Money
One great quality of offshore investment frausters / con artist is that they are great sales people.
Although a good number of offshore investment schemes are secure especially when you deal with legitimate international banks and investment funds a good number are duds out to fleece investors
Signs of Offshore investment scums
Look at this classic warning signals in a dud offshore investment advertisement
1.Secrecy,
2. Promises of unrealistic investment returns returns of 30% – 40%
3. Special tax advantages,
4. Lure of grand properties in foreign locales.
written by Buffet Stocks
\\ tags: Con Artist, Dud, Duds, Fleece, International Banks, International Investment, Investment Advertisement, Investment Funds, Investment Returns, Investment Schemes, Investors, Offshore Investment, Secrecy, Signals, Signs
I just got got the following email in my in-box attacking the idea stock market deliver? big returns in the long term. It describes how investors end up losing money in the long term.
1997 – Child received $5,000.00 from grandmother’s estate. Invested with Investment Co. 1
2000 – $5,000 investment at $4200.00 – Taken from Investment Co 1 and put with Investment Co 2
2003 – $5,000 is now $3,000.00.
Taken from Investment Co 2, child’s parents added $2,000 to bring same up to $5,000.00.Given to Investment Co 3 (after being advised about the strategy of dollar averaging)
2009 – $5,000.00 Investment is now 12 years old. Worth $5300.00.
Most of us can’t get our heads around six and seven figures but all of us can see what happened to this $5,000.00. Shows what fools we’ve been to believe the blather from the “stocks are great”, crowd. The only people who made money on this kid’s investment were the Bernie Madoff’s etc who charged the child and his parents for “investing” for them. The family would have been better off putting the money in a tin can in the dog house.
written by Buffet Stocks
\\ tags: Bernie madoff, Blather, Crowd, Dog House, Dollar, Email, Fools, Grandmother, Investment Co, Investors, Money, Negative Returns, Parents, Stock Market, Stocks, Tin
Litigations have become a fact of modern life. When people are facing litigation with a potential of hefty fine they tend to ask whether asset protection can work when one is facing litigation.
According to some lawyers. In some cases, yes, although asset planning options are ordinarily narrowed under such circumstances. Asset Protection is a vaccine, however, not a cure, and it is best viewed as preventive medicine. It is very difficult to purchase fire insurance once the fire has started. It is advisable to have the legal restructuring completed before litigation is even on the horizon. It can, however, be very helpful during and after litigation, as well.
So, consult with your lawyer for the best cause of direction.
written by Buffet Stocks
\\ tags: Asset Protection, Circumstances, Fire Insurance, Horizon, Insurance, Lawyer, Lawyers, Litigation, Litigations, Medicine, People, Preventive Medicine, Protecting Your Assets, Restructuring
Investing school or class you attend will determine your success or failure. Maddof created the largest fraud in history, the question is where did the guy learn how to do what he did.
This cartoon tells it all
written by Buffet Stocks
\\ tags: Bernie madoff, Cartoon, Failure, Fraud, Investing, Investing school, Ponzi scheme, Success
Bear markets provides investors with opportunities to make money by shorting shares, commodities whatever your investment.
In a bull market an investor buys share hoping to sell in the future at a higher price in the same way an investor who understands shorting a market sells borrowed shares hope they fall in price when the do he buys back the share and makes a profit from the difference.SO
written by Buffet Stocks
\\ tags: Bear, Bear Market, Bear Markets, Bull Market, Commodities, Investing Money, Investing Tip, Investment Market, Investor, Investors, Market Investing, Market Shares, Money Market, Money Markets, Whatever Your Investment
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