Mar 12

One strategy to take advantage of the rolling boom in US farmland prices is buying a US farmland ETF ( exchange traded fund)

Data from US farmland prices & statistics show, since 2000, U.S. farmland prices have risen by 58% after inflation, according to the FDIC. And since 2003, they’ve risen by over 10% annually.

To put it in real numbers, the average price of an acre of U.S. farmland more than doubled from $1030 in 1999 to $2350 in 2008.

Investing In farmland Via ETF

One strategy to take advantage of this boom in US farmland prices is buying a US farmland ETF ( exchange traded fund). ETFs investing in farmland are not plentiful but they are out there.

Market Vectors Agribusiness ETF

One US farmland ETF that we are aware of is the Market Vectors Agribusiness ETF (NYSE:MOO). This farmland ETF is listed in NYSE.

It is cheaper to buy an ETF than to go out and buy a farmland.

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

Mar 08

San Antonio is Located near the center of Texas. San Antonio offers a range of real estate from apartments to condos to houses.

San Antonio House Prices

According to National Association of Realtors the median price of a San Antonio home was $158,000 in 2010.

Property Investment San Antonio

There are many advantages in investing in San Antonio property. San Antonio has a warm climate. It is famous for its Paseo del Rio (River Walk) Tejano culture and as home to the SeaWorld and Six Flags Fiesta Texas theme parks

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

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: , , , , , , , , , , , ,

Jan 03
Goldman Sachs is investing $450 million in internet darling Facebook at a $50 billion valuation, the New York Times’ Dealbook reports.
Goldman Sachs Facebook investment comes as Facebooks is now ranked the most popular site in the internet and rumour has it Facebook brought in close to $2 billion revenues in 2010.
Goldman Sachs Facebook Investment Terms
As part of the deal, Goldman sachs facebook investment, the investment bank will help raise up to another $1.5 billion for Facebook.
Is Goldman sachs Facebook Investment Prelude to Facebook IPO?
Analyst for this kind of deals have concluded this deal puts Goldman in the lead to run Facebook’s eventual IPO.

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

Aug 08

I was reading the latest quarterly report from Berkshire Hathaway, they just reported 40% profit decline for quarter ending June 2010.

The business remains solid but the company profits seem to be dragged down by its derivative contracts that the company signed in 2007.

The contracts are tied to equity indices. When the US stock market rises Berkshire gains but when the the stock indices slide down Berkshire looses.

In the last quarter the paper losses from this derivative contract was $1.5 billion.

In 2009 second-quarter the stock market soared & Berkshire recorded a mostly unrealized $1.5 billion gain on its derivatives in last year’s second quarter.

Warren Buffet himself correctly predicted the value of those derivatives would vary widely quarter to quarter.

How big a risk are this derivative contracts? Warren Buffet himself once referred to them as weapons of mass destruction.  Only time will tell.

For a better understanding of this derivative contract read this article Berkshire misunderstood derivatives.

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

Jul 28

The Vanguard group is a mutual fund that allows retail investors invest in the movement of S & P 500.The fund owns 500 stocks — all the companies that are included in the index.

If you are interested in investing in Vanguard fund and you may be interested to know its advantages.

The Advantage of Investing in Index fund.

Low Cost fees – Vanguard funds don’t charge commission fees to buy into the fund

Higher return to investor – Vanguard funds don’t hire expensive stock analysts, don’t rapidly move in and out of position. This saves on operational cost. The money saved is moved that is distributed to investors as gains.

Stable Return. Vanguard fund never claims to beat the index. The returns are average but stable.

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

Jun 25

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

madoff

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

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