Jan 11

The biggest investing dilemma for an investor is knowing when to buy or sell stocks. The best investing quote as to when to buy or sell stocks has to be the following investing quotes by Warren Buffet.

“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

The following quote came from Buffet in 2010 at the height of the Credit crisis explain why he was buying stocks when others were selling.

When it’s raining gold, reach for a bucket, not a thimble.

This investing quotes should be a guide on when to buy or sell stocks

written by Constantine Njeru \\ tags: , , , , , , , , , , , ,

Dec 22

Gold has swung from $328 in 2002 to over $1,400 in 2010. That rise  can be attributed to SPDR Gold Trust.

December issue of Businessweek has an article that shows the rise of gold is solely being driven by demand from ETFs.

SPDR Gold trust was created with the sole purpose of drumming up the price of Gold.

“Our primary mission was to find every button we could push to stimulate demand,” Burton, 59, said in an interview in London.

Who Benefits from the rise in Gold Price?

The Gold miners. In early 2000s the World Gold Council(a group of gold miners) were fed up with the falling price of Gold, previous attempt to stimulate demand of Gold as jewellery had failed. They came up with the idea creating a financial instrument that would drive up the price of Gold. They created SPDR Gold Trust.

The fund, SPDR Gold Trust (pronounced Spider), now holds 1,299 metric tons of gold valued at about $57 billion, more than the Swiss central bank.

Other funds have since emerged. The funds buy the physical gold and sell shares to investors.

The money flowing into these funds is what is driving the Gold frenzy.

written by Constantine Njeru \\ tags: , , , , , , , , , , , , , , , , , , , , , , , ,

May 12

Warren Buffet is the best investor in the world, when measured by ability to accumulate money. His investment advice on the best time to sell you shares can be found on the following quote by him.

We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful. By Warren Buffet

By greedy he means when the market is in a bull frenzy and every Tom, Dick and Harry is buying stock. When everyone is buying prices tend to go well above their true value and that is when a smart investor should be thinking of selling.

written by Constantine Njeru \\ tags: , , , , , , , , , , , ,

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