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Wednesday, January 27, 2010
Do you want to achieve your dreams ????
Saturday, January 2, 2010
Start t o enjoy life NOW !!!
‘કેમ તમારો વિચાર બદલી ગયો કે શું ? અહીંયા કેમ ઊભા રહી ગયા ?’
What is LUck ????
"What if the best candidates are in there?"
"You have a point," he said. "But then again, I don't need people with bad luck here."
- M.Asad Ahmed ( Reader's digest)
Sunday, December 13, 2009
Warren buffet
Warren Buffett is the world's most successful investor. He started out with money from his three newspaper routes in Washington DC and other small money-making activities. He saved his money and invested it.
Here are the amazing figures:
Age 20, end of 1950 has $9,804 (childhood savings and investments)
Age 21, end of 1951 has $19,738 (a good year in the markets!)
Age 26, 1956 has about $174,000
Age 76, 2006 has about $44,000,000,000 ($44 billion) and begins to give his fortune to Charities. Compounded gain in wealth per year since 1956 was about 28% per year.
Buffett only ever worked for anyone else for about 4 or 5 years. Beginning in 1956 he generated his wealth strictly from investments (which included running an investment partnership and soon included buying whole companies rather than just stocks and bonds). As president of his investment company Berkshire Hathaway his salary has been $200,000 per year for many many years with no bonuses or stock options added to that.
The point is, the man generated $44 billion in wealth from a standing start (no significant inheritance) simply through astute investing. If that does not motivate you as an investor, I don't know what would.
Maybe, just maybe, we can all learn something from Warren Buffett. Maybe, just maybe, his methods and teachings are worth following.
Did you know that Buffett told the investment world in 1999 that stocks were over-valued? He demonstrated that stocks could not return the double-digit returns that investors were expecting. The stock market had been rising rapidly (with some bumps along the way) since 1982. Most investors thought that the internet and the technology boom would allow the market to continue to deliver double digit returns. Buffett pointed out why double digit returns were very unlikely.
At a conference in August 1999, and as publised in Fortune magazine in November 1999, Buffett pointed out that while in the 17 years since 1982, the DOW was up astoundingly from 875 to 9181, in the prior 17 years from the end of 1964 to the end of 1981, the Dow had ended up exactly 1 point from 874 to 875.
Buffett explained that the poor performance in the 1965 through 1981 period was primarily due to rising interest rates and that, conversely, the out-performance in the 17 years ending 1999 was primarily due to declining interest rates. The U.S economy had grown in both periods (370% in the poor-returns period, somewhat under 300% in the mega returns period).
Buffett pointed out that in the long-run earnings grow at about the rate of nominal GDP growth. He then suggested that a reasonable forecast for GDP growth was 5% (3% real growth and 2% for inflation). Adding 2% for dividends he concluded that the overall U.S. stock market was unlikley to return more than 7% per year in the longer term strating from 1999. In fact given the high value of the market in 1999, Buffett's best guess for the return in the 17 years after 1999 was just 6%. Less than half of what most investors were used to and expecting! And he believed it was just as likelyto be less than 6% as more.
In 1999 Buffett's article was met with great skepticism, (he was yesterday's man etc.) investors kept on bidding stock prices up, until they crashed in 2001.
As of 2009 it looks like Buffett may even have been optimisitic - as indeed he said he might be. The Dow is right now at almost exactly the same level as it was in 1999 and the Dow's total return has therefore come only from dividends, perhaps 2% or 2.5% per year. So the DOW has got to rise quickly in the next seven years just to give the 6% that Buffett had guessed it might.
So the point is, Buffett was right in 1999, his simple anlysis has proved to be valid.
In late 2001 Buffett followed up his 1999 FORTUNE magazine article and I was lucky enough to see it. I also at that time dug up the original 1999 article.
Starting in 2002 I have regularly used Buffett's method to try to calculate whether or not the DOW and the S&P 500 were fairly valued or not.
As Buffett said in his 1999 article this is not meant to be a way to predict where the market is going in the short term. But it can help us regognise when the market appears to be over-priced or under-priced. In the long-trun, investing more money when the market seems under-valued is likely to be a winning strategy.
Just today I have updated my analysis of the valuation of the Dow and the S&P 500 indexes, using this Buffett-style analysis. In these latest updates I have added additional charts of GDP versus earnings (a relationship used by Buffett) and I believe that these charts can help us understand the "normalized" earnings on the DOW and the S&P 500 and therefore to understand the attactiveness (or lack thereof) of the stock markets at this time.
Warren buffet
Warren Buffett is the world's most successful investor. He started out with money from his three newspaper routes in Washington DC and other small money-making activities. He saved his money and invested it.
Here are the amazing figures:
Age 20, end of 1950 has $9,804 (childhood savings and investments)
Age 21, end of 1951 has $19,738 (a good year in the markets!)
Age 26, 1956 has about $174,000
Age 76, 2006 has about $44,000,000,000 ($44 billion) and begins to give his fortune to Charities. Compounded gain in wealth per year since 1956 was about 28% per year.
Buffett only ever worked for anyone else for about 4 or 5 years. Beginning in 1956 he generated his wealth strictly from investments (which included running an investment partnership and soon included buying whole companies rather than just stocks and bonds). As president of his investment company Berkshire Hathaway his salary has been $200,000 per year for many many years with no bonuses or stock options added to that.
The point is, the man generated $44 billion in wealth from a standing start (no significant inheritance) simply through astute investing. If that does not motivate you as an investor, I don't know what would.
Maybe, just maybe, we can all learn something from Warren Buffett. Maybe, just maybe, his methods and teachings are worth following.
Did you know that Buffett told the investment world in 1999 that stocks were over-valued? He demonstrated that stocks could not return the double-digit returns that investors were expecting. The stock market had been rising rapidly (with some bumps along the way) since 1982. Most investors thought that the internet and the technology boom would allow the market to continue to deliver double digit returns. Buffett pointed out why double digit returns were very unlikely.
At a conference in August 1999, and as publised in Fortune magazine in November 1999, Buffett pointed out that while in the 17 years since 1982, the DOW was up astoundingly from 875 to 9181, in the prior 17 years from the end of 1964 to the end of 1981, the Dow had ended up exactly 1 point from 874 to 875.
Buffett explained that the poor performance in the 1965 through 1981 period was primarily due to rising interest rates and that, conversely, the out-performance in the 17 years ending 1999 was primarily due to declining interest rates. The U.S economy had grown in both periods (370% in the poor-returns period, somewhat under 300% in the mega returns period).
Buffett pointed out that in the long-run earnings grow at about the rate of nominal GDP growth. He then suggested that a reasonable forecast for GDP growth was 5% (3% real growth and 2% for inflation). Adding 2% for dividends he concluded that the overall U.S. stock market was unlikley to return more than 7% per year in the longer term strating from 1999. In fact given the high value of the market in 1999, Buffett's best guess for the return in the 17 years after 1999 was just 6%. Less than half of what most investors were used to and expecting! And he believed it was just as likelyto be less than 6% as more.
In 1999 Buffett's article was met with great skepticism, (he was yesterday's man etc.) investors kept on bidding stock prices up, until they crashed in 2001.
As of 2009 it looks like Buffett may even have been optimisitic - as indeed he said he might be. The Dow is right now at almost exactly the same level as it was in 1999 and the Dow's total return has therefore come only from dividends, perhaps 2% or 2.5% per year. So the DOW has got to rise quickly in the next seven years just to give the 6% that Buffett had guessed it might.
So the point is, Buffett was right in 1999, his simple anlysis has proved to be valid.
In late 2001 Buffett followed up his 1999 FORTUNE magazine article and I was lucky enough to see it. I also at that time dug up the original 1999 article.
Starting in 2002 I have regularly used Buffett's method to try to calculate whether or not the DOW and the S&P 500 were fairly valued or not.
As Buffett said in his 1999 article this is not meant to be a way to predict where the market is going in the short term. But it can help us regognise when the market appears to be over-priced or under-priced. In the long-trun, investing more money when the market seems under-valued is likely to be a winning strategy.
Just today I have updated my analysis of the valuation of the Dow and the S&P 500 indexes, using this Buffett-style analysis. In these latest updates I have added additional charts of GDP versus earnings (a relationship used by Buffett) and I believe that these charts can help us understand the "normalized" earnings on the DOW and the S&P 500 and therefore to understand the attactiveness (or lack thereof) of the stock markets at this time.
Wednesday, December 9, 2009
Did you know priority in life???
When things in your life seem almost too much to handle,
When 24 Hours in a day is not enough,
Remember the mayonnaise jar and 2 cups of coffee.
A professor stood before his philosophy class and had some items in
Front of him. When the class began, wordlessly,
He picked up a very large and empty mayonnaise jar
And proceeded to fill it with golf balls.
He then asked the students if the jar was full.
They agreed that it was.
The professor then picked up a box of pebbles and poured them into the
Jar. He shook the jar lightly. The pebbles rolled into the open
Areas between the golf balls.
He then asked the students again if the jar was full..
They agreed it was.
The professor next picked up a box of sand and poured it into the jar.
Of course, the sand filled up everything else.
He asked once more if the jar was full.
The students responded with an unanimous "yes."
The professor then produced two cups of coffee
From under the table And poured the entire contents
Into the jar, effectively filling the empty space between the sand.
The students laughed.
"Now," said the professor, as the laughter subsided,
"I want you to recognize that this jar represents your life.
The golf balls are the important things - God, family, children, health,
Friends, and Favorite passions -- things that if everything else was
Lost and only they remained, your life would still be full.
The pebbles are the other things that matter like your job, house, and
Car.
The sand is everything else --the small stuff.
"If you put the sand into the jar first," he continued,
"there is no room for the pebbles or the golf balls.
The same goes for life.
If you spend all your time and energy on the small stuff,
You will never have room for the things that are
Important to you.
So...
Pay attention to the things that are critical to your happiness.
Play With your children. Take time to get medical checkups.
Take your partner out to dinner.. Play another 18.
There will always be time to clean the house and fix the disposal.
"Take care of the golf balls first --the things that really matter.
Set your priorities. The rest is just sand."
One of the students raised her hand and inquired
What the coffee represented.
The professor smiled. "I'm glad you asked".
It just goes to show you that no matter how full your life may seem,
there's always room for a couple of cups of coffee with a friend."
Thursday, October 1, 2009
Monday, September 14, 2009
Saturday, September 12, 2009
House budget ?????How ??? From investopedia.com
Often, only one person in the household is responsible for maintaining the family budget and managing the household's finances - and if you're reading this, that person is probably you. But what if you died or became incapacitated and could no longer manage the budget? Or what if you're just tired of managing everything yourself, or your partner wants to become more involved in your household's finances? How do you teach your partner everything you know?
You may think your filing system couldn't be any more organized and that your financial records are in a pretty obvious location, but your partner might not. While you probably have printed documents related to some of your financial affairs, there's a good chance some of your information is stored solely in your memory bank, as you probably manage some of your finances online. Without access to your email to receive monthly statement reminders, your partner probably doesn't know how to find all of your online accounts, and may not even know which banks and brokerage companies you use, not to mention all the bills you pay. A list of all of your accounts makes it easy for your partner to see everything that needs to be addressed.
Friday, September 11, 2009
KUTTA...SHARE AUR BANDAR........
Wednesday, September 9, 2009
Stock market game !!!
He announced that he would buy monkeys from them for Rs 10 per monkey. So, the villagers began catching them by the dozen, and as promised the man paid them.
But pretty soon the villagers became laid-back and the pace of work slowed down. So, the man offered to pay Rs 20 for every monkey they caught.
The villagers started catching monkeys with a vengeance, again. But pretty soon the supply diminished, and people returned to their farms. The going price was raised to Rs 25 and then, Rs 50.
Then one fine day the man had to visit the city and asked his assistant to take over.
The assistant came up with a new game place. He asked the villagers to buy the same monkeys that were sold by them for Rs 35 and sell them to the man for Rs 50. The villagers queued up with all their savings to buy the monkeys.
After some days, neither the man nor the assistant could be found. There were monkeys all around!
Friday, September 4, 2009
How positive attitude works??
Sunday, May 24, 2009
Love
Friday, May 1, 2009
In which you fit ???Romance / Affair / Marriage / Pregnancy ???
Smart man + smart woman=Romance !
Smart man + dump woman=Affair !!
Dump man + smart woman=Marriage !!!
Dump man +dump woman=Pregnancy !!!!!!!!!!!!!!