Daily Investment Tips

Investing money wisely has never been easy, those who say it is easy only talk about investing but never try investing.The following investing tips will help you in your dream of investing money wisely.

1. Learn About Investing

Knowledge is power. Learn about finances, economy, reading and analysing company accounts. You can self educate yourself or pay for investing classes. The more you understand about how investment work the easier it will be to make an informed decision.

2. Don’t put all your eggs in one basket.

This has to be the number one rule of investing money wisely. Diversify your investments. Make a Proper Asset Allocation (Mix of bonds, stocks and Cash)

3. Open an Investment account

Open a bank account where every month you deposit a percentage of your monthly income. The money in this account should be used only for making investments.

4. Ignore Markets Up and Down

Markets are volatile and will have its swings the best thing is to ignore them. Nobody can predict what will happen in the short term, but history has taught us that over the long term markets move upwards.

5. Ignore The Noise

Everyday analysts and economists make predictions, estimates and give their view on how things will go, the media covers these reports extensively. The problem is that more often than not these reports are contradictory and confusing to the investors. Conclusion: Just ignore the noise.

6.Make changes as needed

Things change; you grow older and closer to retirement, you will have children, get a raise/promotion etc. Your portfolio should not be static and needs to change as your circumstances change. Make changes as needed.

7. Buy Index Fund

If all the above sound confusing just buy an index fund that tracks major indices. History has taught us that over the long term markets move upwards.

written by Constantine Njeru \\ tags: Analysing, Bonds, Buy Index Fund, Circumstances, Company Accounts, Economists, Eggs In One Basket, Estimates, Investing Money, Investing Tips, Investment Account, Investment Work, Knowledge Is Power, Major Indices, Money Investing, Money Investments, Proper Asset Allocation, Retirement, Swings, Term Markets

According to the most recent filing of Billionaire hedgde fund manager, John Paulson own investment firm, Paulson & Co. Inc. The following were John Paulson portfolio holding for 2010.

John Paulson Top Five Portfolio holdings

John Paulson Gold Holdings

SPDR Gold Trust

Anglogold Ashanti Ltd.

Mr. Paulson invested heavily in gold on the belief that the dollar would lose value in the coming years. His gold investments are primarily done via a gold exchange-traded fund, SPDR Gold Shares.

John Paulson Stock Portfolio Holdings

Citigroup

Bank of America

Anadarko Petroleum

That bet on bank stocks was perfectly timed to take advantage of the massive fiscal stimulus.

written by Constantine Njeru \\ tags: Anadarko Petroleum, Anglogold Ashanti Ltd, Bank Of America, Bank Stocks, Belief That, Bet, Billionaire, Citigroup, Exchange Traded Fund, Fiscal Stimulus, Gold Exchange Traded Fund, Gold Holdings, Gold Investments, Gold Shares, Gold Stock, Investment Firm, John Paulson, Portfolio Holdings, Spdr, Stock Portfolio

LinkedIn IPO is now a done deal. The question now is, what is LinkedIn IPO Price. In the filing with SEC, LinkedIn said they will raise $175 million in the offering.

LinkedIn did not immediately reveal how many shares would be offered or their price range.

The only guide now is secondary market. As of January 21, 2011, LinkedIn Corp. shares were being sold in an auction by secondary exchange SharesPost Inc. for $30 apiece, valuing the professional-networking website at almost $3 billion.

The market will determine the ultimate price in a few months when they begin trading.

written by Constantine Njeru \\ tags: Auction, Ipo Price, Linkedin, Networking Website, Professional Networking, Sec, Shares

Morningstar is one of the top financial information websites. If you are looking for stock tips you need to give morningstar a look.

Morningstar stock tips service

Morningstar website offers in-depth, independent analysis of stocks, each with buy or sell guideline. They don’t try to focus on short term movements of stock but look at long term value of companies.

To get morningstar stock tips you will need to subscribe to their alerts.

MorningStar stock research

This is how they describe their business:-

We evaluate stocks for what they truly are–pieces of a business. Instead of prognosticating short-term price movements or momentum, our analysts focus on determining the value of a business, its risks, and whether the stock price accurately reflects both the value and risk.

Simply put, we look for superior businesses that trade at discounts to their fair values. The market, of course, doesn’t always agree with us, so sometimes our recommendations are out of step with consensus thinking. But we believe this approach is the most sensible way to create wealth over the long term.

To understand how they evaluate their recommendation visit morningstar research.

written by Constantine Njeru \\ tags: Consensus, Fair Values, Financial Information, Independent Analysis, Information Websites, Momentum, Morningstar Research, Stock Price, Stock Research, Stock Tips, Stocks, Value And Risk

Investing in Emerging Markets is easier today than at any other time. In the last few years Global Emerging funds have produced stellar returns for investor. The performance has been good because the Emerging markets have enjoyed robust economic growth. Countries such as China, Brazil, India, Russia & even the forgotten African countries have been on growth mode for the last decade.

Investing in Emerging Market Funds in 2011

Am I late by investing in Emerging Market fund in 2011? The answer is NO. China just reported that their 2010 GDP Growth was 10%. It is also estimated that by 2050 the BRIC economies of Brazil, Russia, India and China will all be among the world’s half-dozen biggest, along with the US and Japan. China is expected to have overtaken the US to become the most powerful economy on earth.

What this means is, investors risking money in Emerging Market funds may continue to enjoy massive profits.

written by Constantine Njeru \\ tags: African Countries, Amp, Brazil, Earth, Economy, Emerging Market Funds, Gdp, Gdp Growth, Growth Mode, India, Investing In Emerging Markets, Investor, Investors, Japan China, Last Decade, Massive Profits, Money Market, Robust Economic Growth, Russia, What This Means

Any investor interested in Warren Buffet stock market tips should read the book, The Warren Buffet Way by Robert Hagstrom, the writer has summed up principles that explains how Warren Buffet selects his stock market investments.

Warren Buffet Stock Market Tips from the book The Warren Buffet Way

1. Invests only in companies you understand.

2. Study throughly the history of the companies

3. Purchase businesses with excellent long-term prospects

4. Purchase businesses at a large discount to their intrinsic value

5. Purchase businesses with a high return on invested capital

6. Purchase businesses with honest managers

7. To predict growth estimate the companies future capital expenditure.

8. Purchase companies that are obsessed with cutting cost.

written by Constantine Njeru \\ tags: Capital Expenditure, Intrinsic Value, Investor, Market Stock, Purchase Businesses, Return On Invested Capital, Robert Hagstrom, Stock Investments, Stock Market Investments, Stock Market Tips, Stock Tips, Term Prospects, Warren Buffet Stock

If you are a follower of Warren Buffet you can follow Warren Buffet portfolio for 2011 by visiting websites that are dedicated to tracking Warren Buffet portfolio.

Warren Buffet Stock Portfolio 2011 – Tracking Sites

One site that I like for keeping track of Warren Buffet portfolio is warren-buffet-portfolio.com. The site keeps track of Warren buffet latest stock portfolio.

Warren Buffet Latest Stock portfolio 2011

The latest warren buffet stock portfolio on the site has listed 36 stocks where Warren Buffet has invested.

Warren buffet Stock portfolio 2011

To keep track of Buffet stock portfolio for 2011 make sure to keep visiting warren-buffet-portfolio.com

written by Constantine Njeru \\ tags: Follower, Portfolio Tracking, Stock Portfolio, Stock Site, Stock Sites, Stock Track, Stock Tracking, Stocks, Tracking Stock, Warren Buffet Stock

Goldman Sachs is reportedly raising $1.5 billion for Facebook. Goldman Sachs has sent out a Facebook offer document to it’s list of wealthy clients.

Other investors targeted are hedge funds and private equity funds. Goldman Sachs partners have also been given the opportunity to buy Facebook stock.

According to Goldman Sachs Facebook offer, investors must promise to invest at least $2 million and not sell shares until 2013.

written by Constantine Njeru \\ tags: Buy Stock, Facebook, Goldman Sachs, Hedge Funds, Investors, Opportunity, Private Equity Funds, Promise, Wealthy Clients

According to an article in deal book NYTimes there are 22 companies in the tech I.P.O. pipeline for 2011.

The five Tech IPOs 2011 to watch out for are internet sensations Facebook, Zynga, Groupon, Linked and Skype.

Non of these companies have confirmed going for a tech IPOs in 2011 but going by the level of public and  investor interest in these five the IPOs are around the corner.

For Facebook, Zynga, Linked and Groupon one factor showing a tech IPO 2011 is the significant demand for these companies stock  in the secondary markets, private exchanges that match buyers and sellers.

Facebook one of Tech IPOs 2011

Facebook has crossed 500 million members mark and reportedly bringing near $2 billion revenues for 2010. In private exchanges Facebook is now valued at $45 Billion.

Zynga one of Tech IPOs 2011

Zynga is heavily tied to Facebook. The company raised more money in 2010 from the likes of Google. Word out there is annual revenues are above $800 million. The demand for Zynga stock in the private market has remained strong.A zynga tech IPO in 2011 is not unthinkable.

Groupon one of tech Ipos 2011

As 2010 came close to an end Google unsuccssefully tried to buy Groupon. Groupon is now negotiating with Fidelity, T. Rowe Price and Morgan Stanley for another round of financing that could be as large as $950 million. With this investors looking forward to an exit strategy groupon could go for a tech Ipo in 2011.

Linked one of Tech IPOS 2011.

Although Linked is below the radar when it comes to news coverage, early investors eventual will want an exit. If Facebook, Zynga or groupon have a spectacular tech IPO in 2011, Linked will be hot on their heels.

SKYPE one of Tech IPOS in 2011.

Skype is the only one that has confirmed a 2011 tech ipo. On August 9, 2010, Skype filed with the SEC to raise up to $100 million in an initial public offering

written by Constantine Njeru \\ tags: 100 Million, Buyers And Sellers, Exit Strategy, Facebook, Fidelity, Google, Initial Public Offering, Investor Interest, Ipo, Ipos, Members Mark, Morgan Stanley, Pipeline, Private Exchanges, Private Market, Radar, Secondary Markets, Sensations, Skype, T Rowe Price

Businessweek has a story about investment funds that have invested in Facebook. This funds are providing retail investors with a means to invest indirectly into facebook.

Facebook Funds

EB Exchange Funds, based in San Francisco, along with New York firms Felix Investments and GreenCrest Capital, have opened Facebook funds.

Since you cant buy facebook stock directly you instead buy into the fund just like you buy a mutual fund.

Read the full story at businessweek facebook.

There is no doubt facebook is the biggest story since Google. Those investors who were lucky to get in early are smiling all the way to facebook IPO date. Funds such as EB exchange have given retail investors another window to get a piece of facebook.

Although Facebook is still a private company investors have been able to buy stock of the company. Stock of Facebook trade on a private-company stock market. The market is known as Secondmarket.

Although there is a secondary market it is extremely hard for outsiders to even get a single stock. The funds have provided another window to get into facebook.

written by Constantine Njeru \\ tags: Businessweek, Buy Stock, Company Investors, Company Stock, Exchange Funds, Facebook, Felix, Google, Greencrest, Investment Funds, Investments, Mutual Fund, No Doubt, Outsiders, Private Company, Retail Investors, San Francisco, Stock Funds, Stock Ipo, Stock Market, Stock Trade