7 Common Investor Mistakes
By Admin | October 31, 2011 - 4:53 pm - Posted in Success/Finance

Of the mistakes made by investors, seven of them are repeat offenses. In fact, investors have been making these same mistakes since the dawn of modern markets, and will likely be repeating them for years to come.

You can significantly boost your chances of investment success by becoming aware of these typical errors and taking steps to avoid them. (To read about market histories, see The Stock Market: A Look Back, The Bond Market: A Look Back and The Money Market: A Look Back.) TUTORIAL: Investing 101 For Beginner Investors

1.No Plan : As the old saying goes, if you don’t know where you’re going, any road will take you there. Solution? Have a personal investment plan or policy that addresses the following: •Goals and objectives – Find out what you’re trying to accomplish. Accumulating $100,000 for a child’s college education or $2 million for retirement at age 60 are appropriate goals. Beating the market is not a goal. •Risks – What risks are relevant to you or your portfolio? If you are a 30-year-old saving for retirement, volatility isn’t (or shouldn’t be) a meaningful risk. On the other hand, inflation – which erodes any long-term portfolio – is a significant risk. (To see more on risk, read Determining Risk And The Risk Pyramid and Personalizing Risk Tolerance.) •

Appropriate benchmarks – How will you measure the success of your portfolio, its asset classes and individual funds or managers? (Keep reading about benchmarks in Benchmark Your Returns With Indexes.) •Asset allocation – What percentage of your total portfolio will you allocate to U.S. equities, international stocks, U.S. bonds, high-yield bonds, etc. Your asset allocation should accomplish your goals while addressing relevant risks. •Diversification – Allocating to different asset classes is the initial layer of diversification. You then need to diversify within each asset class. In U.S. stocks, for example, this means exposure to large-, mid- and small-cap stocks. (Find out more about allocation and diversification in Five Things To Know About Asset Allocation, Choose Your Own Asset Allocation Adventure and A Guide To Portfolio Construction.) Your written plan’s guidelines will help you adhere to a sound long-term policy, even when current market conditions are unsettling. Having a good plan and sticking to it is not nearly as exciting or as much fun as trying to time the markets, but it will likely be more profitable in the long term. (To find out how to make your investment plan, see Having A Plan: The Basis Of Success, Ten Steps to Building A Winning Trading Plan and Tailoring Your Investment Plan.)

2. Too Short of a Time Horizon : If you are saving for retirement 30 years hence, what the stock market does this year or next shouldn’t be the biggest concern. Even if you are just entering retirement at age 70, your life expectancy is likely 15 to 20 years. If you expect to leave some assets to your heirs, then your time horizon is even longer. Of course, if you are saving for your daughter’s college education and she’s a junior in high school, then your time horizon is appropriately short and your asset allocation should reflect that fact. Most investors are too focused on the short term.

3. Too Much Attention Given to Financial Media : There is almost nothing on financial news shows that can help you achieve your goals. Turn them off. There are few newsletters that can provide you with anything of value. Even if there were, how do you identify them in advance? Think about it – if anyone really had profitable stock tips, trading advice or a secret formula to make big bucks, would they blab it on TV or sell it to you for $49 per month? No – they’d keep their mouth shut, make their millions and not have to sell a newsletter to make a living. (To learn more, see Mad Money … Mad Market? and The Madness Of Crowds.) Solution? Spend less time watching financial shows on TV and reading newsletters. Spend more time creating – and sticking to – your investment plan.

4. Not Rebalancing : Rebalancing is the process of returning your portfolio to its target asset allocation as outlined in your investment plan. Rebalancing is difficult because it forces you to sell the asset class that is performing well and buy more of your worst performing asset classes. This contrarian action is very difficult for many investors. In addition, rebalancing is unprofitable right up to that point where it pays off spectacularly (think U.S. equities in the late 1990s), and the underperforming assets start to take off. (Keep reading about this subject in Equity Premiums: Looking Back And Looking Ahead.) However, a portfolio allowed to drift with market returns guarantees that asset classes will be overweighted at market peaks and underweighted at market lows – a formula for poor performance. The solution? Rebalance religiously and reap the long-term rewards. (Find out how to put this tip to use in Rebalance Your Portfolio To Stay On Track, When Fear And Greed Take Over and Master Your Trading Mindtraps.)

5. Overconfidence in the Ability of Managers : From numerous studies, including Burton Malkiel’s 1995 study entitled, “Returns From Investing In Equity Mutual Funds”, we know that most managers will underperform their benchmarks. We also know that there’s no consistent way to select – in advance – those managers that will outperform. We also know that very, very few individuals can profitably time the market over the long term. So why are so many investors confident of their abilities to time the market and select outperforming managers? Fidelity guru Peter Lynch once observed, “There are no market timers in the ‘Forbes’ 400′.” Investors’ misplaced overconfidence in their ability to market-time and select outperforming managers leads directly to our next common investment mistake. (For more insight, see Pick Stocks Like Peter Lynch.)

6. Not Enough Indexing : There is not enough time to recite many of the studies that prove that most managers and mutual funds underperform their benchmarks. Over the long-term, low-cost index funds are typically upper second-quartile performers, or better than 65-75% of actively managed funds. Despite all the evidence in favor of indexing, the desire to invest with active managers remains strong. John Bogle, the founder of Vanguard, says it’s because, “Hope springs eternal. Indexing is sort of dull. It flies in the face of the American way [that] ‘I can do better.’” Index all or a large portion (70-80%) of all your traditional asset classes. If you can’t resist the excitement of pursuing the next great performer, set aside a portion (20-30%) of each asset class to allocate to active managers. This may satisfy your desire to pursue outperformance without devastating your portfolio.

7. Chasing Performance : Many investors select asset classes, strategies, managers and funds based on recent strong performance. The feeling that “I’m missing out on great returns” has probably led to more bad investment decisions than any other single factor. If a particular asset class, strategy or fund has done extremely well for three or four years, we know one thing with certainty: We should have invested three or four years ago. Now, however, the particular cycle that led to this great performance may be nearing its end. The smart money is moving out, and the dumb money is pouring in. Stick with your investment plan and rebalance, which is the polar opposite of chasing performance. Conclusion Investors who recognize and avoid these seven common mistakes give themselves a great advantage in meeting their investment goals. Most of the solutions above are not exciting, and they don’t make great cocktail party conversation. However, they are likely to be profitable. And isn’t that why we really invest?

Read more: http://www.investopedia.com/articles/stocks/07/mistakes.asp#ixzz1cMA2T1yH

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Steve Jobs’ 10 Secrets to Building a Huge Empire
By Admin | October 21, 2011 - 3:35 pm - Posted in Others

Steve Paul Jobs was born on February 24th, 1955. He is known to be the Chairman, co-founder as well as the CEO of the Apple Inc. He was also the former CEO of well known Pixar Animation Studios. He was also represented among the Board of Directors of the Walt Disney Company. Not bad!

He completed his studies in California and later he did his frequent after-school lectures in Palo Alto at the Hewlett Packard Company. In a few months time, he was hired in the same place and from there his career started to accelerate. The great personality exhibited by Steve Jobs was told and appreciated far and wide. He was referred to as one of Silicon Valley’s leading egomaniac by Fortune Magazine.

Steve JobsIt was in the year 1976 when he founded the company he named Apple Inc. Presently, Jobs is referred to as the single largest shareholder in the Walt Disney Company and also one among its Board of Directors. His presence and appreciation in both the computer as well as entertainment field is remarkable.

With his fame, he is well known for whatever came out from his mouth and was thus noted to be quoted. In casual conversation, Steve Jobs seems to come up with earth-moving quotes. The mastery of this is that most of his quotes can be applied to the the jobs we all have, the careers we all seek, and the lives we all want to lead.

Let’s take a look at some of the great quotes of this modern day tech and media leader.

    1. To Build up Confidence

      “We don’t get a chance to do that many things, so every one should be really excellent. Because this is our life. Life is brief, and then you die, you know?”

      Steve Jobs is confident in whatever decisions he makes and he talks about what has taken him to great heights. He also insists all of us to be good to the heart as our lives are short and death can arrive at any time.

    1. On Confidence and Creativity

      “That happens more than you think, because this is not just engineering and science. There is art, too. Sometimes when you’re in the middle of these crises, you’re not sure you’re going to make it to the other end. But we’ve always made it, and so we have a certain degree of confidence, although sometimes you wonder.”

      People are terrified at times. However, those that make choices based on real criteria, regardless of the conceptual nature of them, can confidently stand behind them and are able to shake off the uncertainties that arise.

    1. On the Experience as a User

      “Our DNA is as a consumer company – for that individual customer who’s voting thumbs up or thumbs down. That’s who we think about. And we think that our job is to take responsibility for the complete user experience. And if it’s not up to the par, it’s our fault, plain and simple.”

      User satisfaction is not just for business owners. Your boss could be considered as a user of your output. By mastering your trade and ensuring a complete and accurate output (albeit a report, a design, an article, etc.), your ‘users’ will be happy and reward you with continued business.

    1. On Focus

      “People think focus means saying yes to the thing you’ve got to focus on. But that’s not what it means at all. It means saying no to the hundred other good ideas that there are. You have to pick carefully.”

      The real meaning of focus is not the simple yes. Instead, it is all about the ideas which are imparted by picking and sorting the best out. Careful detection and estimation of your plans and the ideas and strategies taken to implement them are what Steve Jobs is talking about.

    1. On Passion

      “When I hire somebody really senior, competence is the ante; they have to be really smart. But the real issue for me is, are they going to fall in love with Apple? Because if they in love with Apple, everything else will take care of itself.”

      This comes down to passion. When you have passion for what you do, good results and dedication are sure follow. Identifying your passion is difficult but once there, work is no longer work. As a worker, find and live your passion. As an employer, get employees to really see the vision and their role in taking the company there.

    1. On Leadership Qualities

      “So when a good idea comes, you know, part of my job is to move it around, just see what different people think, get people talking about it, argue with people about it, get ideas moving among that group of 100 people, get different people together to explore different aspects of it quietly, and, you know – just explore things.”

      Cisco Systems had a great motto at one point that read, “We are stronger together than we’ll ever be apart.” Many times, good ideas are made great by seeking input from others. By surrounding yourself with people that you’d admit are smarter than you, greatness has a chance.

    1. On Product Tactics

      “It’s not about pop culture, and it’s not about fooling people, and it’s not about convincing people that they want something they don’t. We figure out what we want. And I think we’re pretty good at having the right discipline to think through whether a lot of other people are going to want it, too. That’s what we get paid to do.”

      This is about legitimacy. Getting paid is great but executing on a long term vision based on demand is a true art.

    1. On Succession Planning

      “I mean, some people say, ‘Oh God, if [Jobs] got run over by a bus, Apple would be in trouble.’ And, you know, I think it wouldn’t be a party, but there are really capable people at Apple. My job is to make the whole executive team good enough to be successors, so that’s what I try to do.”

      The real work of a CEO is to lay pipe (sort of speak). A good CEO is laying the groundwork for an organization to succeed on its own – today and tomorrow. Much of this has to do not only with the people that surround you, but letting go of the ego.

    1. On LayOffs

      “We’ve had one of these before, when the dot-com bubble burst. What I told our company was that we were just going to invest our way through the downturn, that we weren’t going to lay off people, that we’d taken a tremendous amount of efforts to get them into Apple in the first place – the last thing we were going to do is lay them off.”

      When you make a concrete effort to only hire the best employees, releasing them may cost more than keeping them around. Sure. Unproductive employees need to go but mass layoffs versus a strategic realignment that moves expertise, is a clear alternative. Choices like this, short term gain versus long term impairment, are critical ones to make.

  1. On the job of Recruiting

    “Recruiting is hard. It’s just finding the needles in the haystack. You can’t know enough in a one-hour interview. So, in the end, it’s ultimately based on your gut. How do I feel about this person? What are they like when challenged? I ask everybody that: ‘Why are you here?’ The answer isn’t very important, it’s the meta-data.”

    The recruiting job is tough indeed and not as easy as you’d think. If you, as a hirer, get to someone’s core, you have a chance at understanding them. This is what Steve Jobs would love to say about the entire process of hiring people for work. He also finds it similar to looking out for the needles in the haystack which is simply as impossible as it should be.

There are plenty more quotes given out by Steve Jobs. However, these form a decent foundation that you can take to you life in the effort to find great success, for attaining hopes, and building up a real huge empire

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IIM-A Students Get 1 Crore Pre-Placement Offers
By Admin | October 17, 2011 - 6:40 pm - Posted in Others
IIM-A Students Get Rs.1 Crore Pre-Placement OffersAhmedabad: New fears of economic slowdown have not stopped the biggies from wooing bright ones with exciting offers. Three students from Indian Institute of Management – Ahmedabad have reportedly received 1 crore-plus pre-placement offers (PPO) from some of the leading global financial institutions.

According to a Times of India report, Deutsche Bank has made this offer to two of IIM-A students for its Singapore and London offices while another student received a similar offer from another financial giant Barclays. It’s reported that this offer is one of the highest PPO offers ever made on the campus. PPOs are often made by companies to students depending on their performance during the summer placement.

 

The article also quotes some undisclosed sources from the institute’s placement committee who claimed that more than 50 students out of 380 in the current second-year post-graduate programme have received PPOs. Most of the offers came from the financial sector, notably from retail and investment banking companies such as Goldman Sachs, Morgan Stanley, and Nomura.

However, IIM – Ahmedabad’s official blog has published a clarification regarding the news which reads, “We would like to clarify in interest of the entire community that this information is unsubstantiated. Neither the Placement Committee nor the students have released any specific details to the media regarding the PPO offers and salary details. We felt compelled to communicate this clarification because as a matter of policy we do not publish individual specific compensation details. These are confidential information and should be respected as such. The number of PPOs received by students is also data which we only share once final placements are over. Further, the Placement Committee has not received any compensation details for the mentioned PPOs from the firm(s).”

Though the truth about this offer is yet to be clarified, the news of such big PPOs is refreshing amidst fears of another global meltdown.

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Could a Juicing Diet Be For You?
By Admin | October 10, 2011 - 5:47 pm - Posted in Others

Carrying around excess weight and stress easily produces health problems for people – fatigue, high cholesterol, high blood pressure and type 2 diabetes are just some of the problems that could arise. However, like any problem, it can be solved and dieting can be a main component of health improvement.

However, when most people think of diet, they automatically think they must eat less food. But in reality, a diet should mean more minerals, more vitamins and more nutrients. And what’s the easiest way to receive those nourishments? A juicing diet.

Juicing fruits and vegetables is not only the best way to receive the greatest amount of the foods nutritional value, it also fills your body up with all the components it naturally desires and allows for less cravings of sweets and heavy caloric foods.

A juicing diet can be simple. You can load up on the suggested daily intake of vegetables like spinach, wheatgrass, carrots and a celery stalk all in one meal, in an 8 ounce glass. You can also indulge in more than one juice a day to stretch out that suggested daily intake. In addition, you can freshen up your diet with fruits full of vitamins and anti-oxidants like blueberries, bananas, oranges, strawberries, mangoes and apples, by simply dropping them into a juicing machine.

Another great part about incorporating a juicing diet into your lifestyle is the simplicity it takes to make a juice. When choosing to juice leafy vegetables like red leaf lettuce, parsley, spinach or kale, all you have to do is rinse the leaves, then put them into the machine. You can also peel a garlic clove, add in ginger, or a yam for flavor. Instantly, you have a snack or meal component that takes one minute to make, maybe five minutes to drink; your meal will be filled with iron, potassium, magnesium, multiple vitamins and a variety of phytonutrients.

While you get such great nutrition from a juice diet, it is also a great form of detoxification for your body. With so many modern day toxins, our bodies are infected with cancerous cells, excess body fat, transformed fatty acids, built-up chemicals, viruses and diseases. But once you incorporate antioxidants into your diet, they remove those toxins and free radicals that have the potential to cause damage to the cellular DNA. Over time, damage to your DNA cells can become irreversible and lead to disease, thus the removal of them is essential to your health.

Detoxifying your body not only frees the body of toxins, but it definitely helps for quick weight loss. Excess fat is nothing more than extra calories stored in the fat cells, but when you use a juice, the body uses those stored calories to replace the extra calories you aren’t eating. As the days pass with less whole food intake, your body takes that excess fat and uses it for fuel. Easily, pounds are shed and the body feels lighter and more controlled.

A juicing diet is a great way for everyone to lose weight, free themselves of poisonous toxins and efficiently consume the daily recommendation of vitamins and nutrients that health experts so commonly stress.

Article Source: http://EzineArticles.com

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