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Tracked by: 0 Boarder
Yes,in bear markets, intelligent investors concentrate on dividend pay outs.... buying stocks which have huge dividend record is defintely better idea in this situation.... but stick to quality grwoth oriented business models.... there may be few corporates sell their shares and pay the dividends.... be careful in selecting counters on the basis of dividend criteria.......
In reply to:
Is indian economy collapsing????!!!!
Posted by :
radhika_nandlal
Markeman,
Okay, do u think its good to buy dividend paying stocks now which are at 52 week lows so we get both dividend and appreciation when markets regain their lost glory?
Are there companies which have to compulsorily pay dividend.. I MEAN by complusory obligatory.
Thanks 
Tracked by: 3 Boarders
for raneshramesh,
500k is too high amount to lose. The properties in India are not going to crash that you can afford to lose this much. I do not know the valuation of your property and whether the apartment is ready for possession or under construction. Normally, I never advise anyone in India to buy the property under construction, because in downturn, they run away. It is better to pay 10% more and buy the ready one - pay him on one side, receive on the other - like COD or Cash against delivery. Always make final payment through the financing bank or Lawyer so that all formalities are complied with.
You could have token money of say Rs 1000 and seek all documents from the builder saying that they may be required by the bank for the purpose of loan. If the market situation reverses or you find that the property is not that worth, you can retrace saying the bank did not approve the loan. The most you lose is Rs 1000
Under the cirumstances, you may apply for a loan and pay the builder against delivery of the flat (if it is ready) or make him to agree to receive part payment of just 20% more and balance only against possession. Tell him these are the terms of the bank you are borrowing from. If he disagreed, ask him to return the amount (official or No.2). If the market is in rising trend, he may refund.
Otherwise, proceed cautiously if the property is under construction and the builder is of high repute.
Kalidas, Hong Kong
10-10-2008...
In reply to:
Americans Common Sense Prevails...
Posted by :
raneshramesh
thanks very much for your wisdom,unfortunately i did not hold any cash at this time, howver i will try to work out as per your suggestions. Now, i seek another advise from you, recently i have made a aggrement to buy one flat in an appartment in Hyd and i paid 500k INR as advance, and i have to apply for a loan for another 3mil INR..after looking at the global credit situation, is it advisable to apply for loan and buy this plot or i should leave this agrement by loosing 500K to the builder, becoz, there are very less chances to get back my advance money...i am really confused, i am sure even if you staying out side India, your knowledge is wide spread, once again thanks for your time , regards, Ranesh
Tracked by: 0 Boarder
This is the full posting. sorry for the inconvenience
US to take stake in banks, first since Depression
WASHINGTON: The US government will buy an ownership stake in a broad array of American banks for the first time since the Great Depression, Treasury Secretary Henry Paulson said late on Friday, announcing the historic step after stock markets jolted still lower around the world despite all efforts to slow the selling stampede.
Separately, the US and the globe`s other industrial powers pledged to take "decisive action and use all available tools" to prevent a worldwide economic catastrophe.
"This is a period like none of us has ever seen before," declared Paulson at a rare Friday night news conference. He said the government programme to purchase stock in private US financial firms will be open to a broad array of institutions, including banks, in an effort to help them raise desperately needed money.
v.krishnamoorthy...
In reply to:
U S wants to take shares in some banks.
Posted by : Leave it.
US to take stake in banks, first since Depression
WASHINGTON: The US government will buy an ownership stake in a broad array of American banks for the first time since the Great Depression, Treasury
Secretary Henry Paulson said late on Friday, announcing the historic step after stock markets jolted still lower around the world despite all efforts to slow the selling stampede.
Separately, the US and the globe`s other industrial powers pledged to take
Tracked by: 0 Boarder
Markeman,
Okay, do u think its good to buy dividend paying stocks now which are at 52 week lows so we get both dividend and appreciation when markets regain their lost glory?
Are there companies which have to compulsorily pay dividend.. I MEAN by complusory obligatory.
Thanks...
In reply to:
Is indian economy collapsing????!!!!
Posted by : marketman
Radhika,cash banks them selves are in failure mode in recent times.... who cares about land banks/people banks.... market laughing at us if we talk about land bank,in present situation....
For example i have bought the gulf oil corp on the basis of land bank value,now it is quoting at exactly 50% of my buy price.... ofcourse it is quoting near to 10% of its peak price....
Tracked by: 0 Boarder
US to take stake in banks, first since Depression
WASHINGTON: The US government will buy an ownership stake in a broad array of American banks for the first time since the Great Depression, Treasury
Secretary Henry Paulson said late on Friday, announcing the historic step after stock markets jolted still lower around the world despite all efforts to slow the selling stampede.
Separately, the US and the globe`s other industrial powers pledged to take ...
Tracked by: 0 Boarder
Radhika,cash banks them selves are in failure mode in recent times.... who cares about land banks/people banks.... market laughing at us if we talk about land bank,in present situation....
For example i have bought the gulf oil corp on the basis of land bank value,now it is quoting at exactly 50% of my buy price.... ofcourse it is quoting near to 10% of its peak price.......
In reply to:
Is indian economy collapsing????!!!!
Posted by : radhika_nandlal
Thanks marketman, no views on NIFTYBEES then?
We should buy stocks which either have nil exposure to US or all exposure to US coz they can surprise only one way either up or down. Moderation that lovely trait has alwasy eluded the US genome, including its Financial industry`s genome. LOL
Buying nifty bees could be dangeous consideirng the margins of TECH STOCKS could be hit if BPO operations wind up in India due to the recessin they are in... best is to buy BEL... their land bank in Bangalore is as big as USSR. lol
Tracked by: 0 Boarder
If retirement is far off, don’t panic over week’s worth of bad economic news
When Wall Street takes a spectacular ride, whether you feel nausea or not depends on whether you consider yourself a passenger or passerby.
And that, in turn, depends on whether you have the luxury of ignoring the rise and fall of the financial roller-coaster.
“The stock market has a very important role,” said Dorsey Farr, principal in Atlanta-based French Wolf & Farr, an investment and wealth advisory firm. “But maybe you shouldn’t stop and read the ticker every time you pass a brokerage or go into a sports bar that has CNBC.”
Friday’s performance of the Dow Jones industrial average is a case in point. The well-watched market measure roared lower early in the day, then higher, then dropped, then soared, and finally finished down 128 points. That slippage seemed minor after a series of huge drops in recent weeks that left major stock indices down roughly 40 percent for the past year, resulting in one of the 10 worst markets of the past century.
Thanks to a massive bailout, election-year politics and near-constant coverage in the media, the spotlight has stayed trained on Wall Street.
Confidence has been rattled, but how much do jittery markets really matter to the nation’s trillion-a-year economy? There are at least some reasons to see the triple-digit losses and shrug:
• Stock prices don’t typically impact day-to-day company operations. A profitable company is still profitable.
• Among the roughly 137 million American workers not laboring on a farm, an infinitesimal fraction lose jobs because the market plunges. For the rest, paychecks still arrive, meaning spending ability is unchanged.
Still, some people feel the roller-coaster’s vertigo immediately.
Right in the front seat are people preparing to retire and who are depending on portfolios. Along with them are investors who have counted on stock sales to pay bills, said Adrian Cronje, Atlanta-based director of asset allocation at Wilmington Trust, a wealth management firm. If you do not need to cash out anytime soon, “you have got to do your best to ignore the gyrations of the market,” he said.
Those gyrations have been mostly to the downside, despite the government’s proposed interventions that add up to hundreds of billions of dollars.
Eventually, those plans — however flawed — will bolster the credit markets and prevent financial disaster, argued Cronje.
“In the short run, what drives the market is emotion — panic, fear and greed,” he said. “In the long run, it’s driven by fundamentals.”
But at the moment, the stock market is afraid those fundamentals are fatally flawed. And while much of the economy can ignore the market for awhile, eventually its effects do reach into most corners of Main Street.
The link grows stronger as time passes.
“If you are not retiring in the next five years, then on a day-to-day basis, it shouldn’t affect what you are doing,” said economist Akila Weerapana, of Wellesley College. “The question is, what is your horizon?”
The farther out you look, the larger the market looms.
Public companies turn to the stock market, hoping to sell a stake in themselves in return for cash. While there are other sources of capital — loans and bonds, especially — issuing stock is a key means of raising money for expansion or just to operate the business. Lately, that has been growing much harder because of sagging markets.
“If firms can’t raise capital, they can’t keep plants running, they can’t build new plants and they can’t employ workers,” Farr said.
And consumers, whose spending accounts for more than two-thirds of the economy, look to the market for cues.
Consumers’ wealth is primarily found in their homes, as well as in stocks held individually, or as part of mutual funds or 401(k) plans.
When people believe they are richer, they spend more — but the reverse is also true.
For every dollar in declining market worth, a consumer averages 2.5 to 4.5 cents less in spending, Farr estimated.
But how dramatically Americans react can be as much about their heads as their wallets, Weerapana said.
There is good reason to be afraid, but fear can also sometimes feed on itself, he said. “What you are seeing is the psychology at work. Psychology does have a real-world effect.”
By MICHAEL E. KANELL
...
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While Canadian banks do borrow on world capital markets and are affected by the general risk aversion in those global markets, said Shenfeld, they "have very high capital ratios (and) are very well capitalized."
For the Canadian economy as a whole, he said, "we`re also waiting for the resolution of much more severe banking problems elsewhere in the world."
This "is not a Canadian story per se," said Cooper. "On a relative basis Canada actually is in good shape. But unfortunately we`re not immune to what`s going on in the rest of the world."
Canada has the strongest banks in the world, she said. "But even so, our bank stocks are falling just like bank stocks everywhere else and falling by quite a considerable amount."
As well, "it`s more difficult to borrow money in Canada now than it has been for many years and that would affect householders and businesses. That will slow economic activity in Canada, in addition to a slowdown coming from reduced exports and plunging commodity prices."
Meanwhile, Statistics Canada reported a record 107,000 jobs were added in September, far above expectations. Almost all the growth - 97,000 jobs - was in part-time work, but there were solid gains in health care and social assistance sectors.
The unemployment rate held steady at 6.1 per cent.
The job growth, said Shenfeld, turned out to be "better than we thought it would be. Gaining 10,000 full-time jobs is not bad for a month`s work."
Most of the world`s stock markets have suffered from a massive selloff this week amid worries about the credit crunch. With markets in bear territory, down about a third in value, sentiment has turned extremely negative.
"Momentum is running against the market and you don`t want to get hit by a train," said Jack Ablin, chief investment officer at Harris Private Bank in New York.
"This is now about market psychology. There`s extreme fear and panic out there."
Right now, said Burleton, "the focus is on the doom and gloom and nobody can PREDICT a BOTTOM to this."
"We may see further bouts of panic before we get to somewhat more stable ground."
...
In reply to:
13 to 17 Oct 08 Last week of Fall
Posted by : sambala
Fear and panic trump good economic news as loonie, markets pounded
TORONTO — Just about every financial and economic indicator in Canada tumbled hard Friday, as ever-deepening uncertainty spread like a red stain through the international marketplace.
The loonie and Canadian markets took historic hammerings as fear of a looming global recession sank oil prices, gold prices and almost every sector of the Toronto stock market, taking the shine off good employment news and new government help for the big banks.
"This is clearly a crisis and it is pervasive," said BMO economist Sherry Cooper.
"There`s no ending of anything that`s happening right now. Things are happening very quickly."
The loonie suffered its biggest drop ever, at one point falling 4.78 cents to 82.50 cents US and sliding under 83 cents for the first time since early 2003. It recovered somewhat to trade down 3.79 cents at 83.49 cents US later in the afternoon.
The currency has dropped nine per cent this week alone and has now fallen almost 28 cents since hitting an all-time peak of 110.3 cents US last November.
Meanwhile, the Toronto Stock Exchange fell about 500 points, dipping for a while below 9,000 for the first time since January 2005. In the United States, the Dow Jones industrials dropped more than 150 points, the index passing below 8,000 points before staging a weak late-day rally.
"Extreme risk aversion" rattled the financial markets despite increased rescue efforts by governments all over the world to calm investors and consumers, said Derek Burleton, a TD Bank economist.
"While... a lot of the government steps that have been taken will eventually contribute to the restoration of some confidence, right now the market is still in panic mode," said Burleton.
"There`s just so much selling going on that it`s feeding on itself and it`s driving more selling. We`re seeing flight out of any kind of what`s perceived to be higher-risk currency and into what`s perceived to be those of lower risk, such as U.S. dollar assets, U.S. dollar government bonds."
The loonie`s descent, however, is good news for battered Canadian manufacturers, who have been hit hard by the currency`s rise in the last two years. But it makes imports of everything from fruit and vegetables to machinery more expensive and will likely cause many Canadians to reconsider vacations to the U.S. southern states this winter.
The Canadian market has been hit hard by a plunge in oil prices, as crude dropped $8.89 to US$77.70.
That drop signalled some good news - further declines in gasoline prices for Canadian consumers - but also raised worries about the impact on the Western Canadian oilpatch.
Major oilsands expansions could be delayed or scaled back if crude prices fall further and companies can`t raise the billions of dollars needed for the projects.
"Oil is mirroring the stock market right now," said Phil Flynn, energy analyst at Alaron Trading Corp. in Chicago. "There`s a total lack of confidence. It`s fear driving more fear."
The slumping currency and oil prices Friday took the shine from other more positive news on the Canadian economy.
In Ottawa, Finance Minister Jim Flaherty announced that Canada Mortgage and Housing Corp. is buying up to $25 billion in mortgage-backed securities from the country`s banks in an effort to pump more credit into the economy.
Shortly afterwards, the big banks cut their prime rates again, good news for people with lines of credit, consumer and car loans and flexible-rate mortgages.
CIBC economist Avery Shenfeld called it "a big step in the right direction for the Canadian banking system."
He said it will help banks that otherwise were facing punitive interest rates in the term debt market.
"It will also help borrowers in Canada that otherwise would face those additional costs being passed on."
CONT.....
Tracked by: 0 Boarder
Sp Palo,
When much of the Vedic ritual became fossilized after its priests forgot its inner significance, iconoclasts who insisted on the primacy of personal experience over the *dead dogma* rebelled against the system and established virile bu often misunderstood new rituals.
Just as vedic gods are mentioned in the earlier works of ayurveda, tantric personfications are mentioned in the later ayurvedic literature, to remind the average student not to ignore nonphysical reality even when attending to the mundane.
Because ayurveda is mostly exoteric(mainly concerned with the physical plane, its esoteric aspects are only hinted at in the Ayurvedic Literature finding full expression in the tantras)
By robert svoboda in LIFE HEALTH AND LONGEVITY
Read about TANTRAS on BOOKS AND MAGAZINES BOARD.. i will quote him verbatim for its impossible to convey thoughts and logic as well as he does....
In reply to:
Worse slowdown yet to hit markets
Posted by : sp.palo
Dear Radhika,
May be being truly spiritual is ceasing the mortal sensory actions and merging with the Divine consciousness. May be it is the highest level of meditation with all the six chakras aligned to witness the Divine Play going on unceasingly at the sixth sahastra chakra. If possible, please let me know about TANTRA.
Listen, does Reiki work ? Rightly said, this is to be discussed in a different forum, may be in debates or ideas-from-you forums.
regards
shakti
Tracked by: 0 Boarder
Fear and panic trump good economic news as loonie, markets pounded
TORONTO — Just about every financial and economic indicator in Canada tumbled hard Friday, as ever-deepening uncertainty spread like a red stain through the international marketplace.
The loonie and Canadian markets took historic hammerings as fear of a looming global recession sank oil prices, gold prices and almost every sector of the Toronto stock market, taking the shine off good employment news and new government help for the big banks.
"This is clearly a crisis and it is pervasive," said BMO economist Sherry Cooper.
"There`s no ending of anything that`s happening right now. Things are happening very quickly."
The loonie suffered its biggest drop ever, at one point falling 4.78 cents to 82.50 cents US and sliding under 83 cents for the first time since early 2003. It recovered somewhat to trade down 3.79 cents at 83.49 cents US later in the afternoon.
The currency has dropped nine per cent this week alone and has now fallen almost 28 cents since hitting an all-time peak of 110.3 cents US last November.
Meanwhile, the Toronto Stock Exchange fell about 500 points, dipping for a while below 9,000 for the first time since January 2005. In the United States, the Dow Jones industrials dropped more than 150 points, the index passing below 8,000 points before staging a weak late-day rally.
"Extreme risk aversion" rattled the financial markets despite increased rescue efforts by governments all over the world to calm investors and consumers, said Derek Burleton, a TD Bank economist.
"While... a lot of the government steps that have been taken will eventually contribute to the restoration of some confidence, right now the market is still in panic mode," said Burleton.
"There`s just so much selling going on that it`s feeding on itself and it`s driving more selling. We`re seeing flight out of any kind of what`s perceived to be higher-risk currency and into what`s perceived to be those of lower risk, such as U.S. dollar assets, U.S. dollar government bonds."
The loonie`s descent, however, is good news for battered Canadian manufacturers, who have been hit hard by the currency`s rise in the last two years. But it makes imports of everything from fruit and vegetables to machinery more expensive and will likely cause many Canadians to reconsider vacations to the U.S. southern states this winter.
The Canadian market has been hit hard by a plunge in oil prices, as crude dropped $8.89 to US$77.70.
That drop signalled some good news - further declines in gasoline prices for Canadian consumers - but also raised worries about the impact on the Western Canadian oilpatch.
Major oilsands expansions could be delayed or scaled back if crude prices fall further and companies can`t raise the billions of dollars needed for the projects.
"Oil is mirroring the stock market right now," said Phil Flynn, energy analyst at Alaron Trading Corp. in Chicago. "There`s a total lack of confidence. It`s fear driving more fear."
The slumping currency and oil prices Friday took the shine from other more positive news on the Canadian economy.
In Ottawa, Finance Minister Jim Flaherty announced that Canada Mortgage and Housing Corp. is buying up to $25 billion in mortgage-backed securities from the country`s banks in an effort to pump more credit into the economy.
Shortly afterwards, the big banks cut their prime rates again, good news for people with lines of credit, consumer and car loans and flexible-rate mortgages.
CIBC economist Avery Shenfeld called it "a big step in the right direction for the Canadian banking system."
He said it will help banks that otherwise were facing punitive interest rates in the term debt market.
"It will also help borrowers in Canada that otherwise would face those additional costs being passed on."
CONT.....
...
In reply to:
13 to 17 Oct 08 Last week of Fall
Posted by : amarakbar
Dear Friends,
Since last few messages i have been trying to tel all my readers that SIGNIFICANT bottom is in the making . Sep End message shows 3 weeks to go.
3 Oct message says 2 week to go.
8 Oct message says 5 trading days to go.
now 2 days out of those 5 days are already over and REMAINING 3 days are, 13 Oct to 15 Oct 2008.
Like that song singh is king, this gujju is master of TURNINGS by now.
Grace of God.
Thus my friends, CURRENT DOWNMOVE IN STOCKS WILL END in 13 to 15 OCT 2008 PERIOD.
Some friends will remember when crude wasat 148 usd yours truly had posted that it will not rise anymore from that level, today it is below 100, around 80-90 range.
SELL GOLD which is at 14000 RS for 10 gram level today.
SELL USD which is at 48.5-49INR level today.
SELL REALESTATE which is at alltime high level and has just started to tumble- in my city AHMEDABAD rates - residential property 3200 Rs per sq ft in my area are still same but no buyers anymore at those rates thus stagnant market waiting for downward price adjustments in coming years.
ENCASH YOUR fixed deposit and switch over to STOCKS NOW.
Oct07 to Jan 08 I had written here to encash from stocks and prefer fixed deposit now that trade MUST BE REVERSED, reenter stocks now as they will yield more than 10 % return from current levels in next one year period. Thus a better choice .
Now coming to EXTENT OF FALL POSSIBLE-
Bse30 can touch 9236 level in panic.
Basis of this target 1980/4546 x 21206 that is theory Vipul Lashkari , comaring 1992 April to 1993 April to Oct 2007 to Oct 2008 price change for bse 30 index will give probable target of 9236 for bse 30 index.
We are at 10525 bse 30 index level as on 10 Oct 2008 friday close.
Thus 12.25 % away from possible and probable bottom.
14 rsi is still pointing south in daily chart but is at very low value, it will make bottom - higher bottom formation during monday 13 oct to wednesday 15 oct 2008 , thus POSITIVE divergence will ENSURE END OF CURRENT DOWNMOVE, stoch will also GIVE BUY SIGNAL by line crossover , indicator cutting moving average line from below.
Whatever you buy now, HOLD TILL FEB 2009 - sell in budget expectation RALLY -15 OCT 2008 to 13 FEB 2009.
I expect 20 % return on investment for one who INVESTS NOW IN STOCKS in this period - conservative estimate, 30 to 40 % return practical estimate and above 50 % return OPERATOR`s estimate.
Stability will return in world markets by 5 to 19 Nov 2008 and then onwards UPMOVE is expected.
Warm regards
Vipul Lashkari
Tracked by: 0 Boarder
Buffett`s obsession with making money permeates the book and every aspect of his life. His fundamental premise is to buy sound stocks that historically have sales that have grown annually, are well run, have durable competitive advantage and will most likely be around in 20 years.
Above all, spend less than you make.
At the core of his business values is the inner scorecard. As he puts it:
"If the world couldn`t see your results, would you rather be thought of as the world`s greatest investor but in reality have the world`s worst record? Or be thought of as the world`s worst investor when you were actually the best?``
Buffett`s photographic memory for figures and a will to turn any enterprise he could think of into cash started at a very young age. He asked Santa Claus for a book on bonds when he was seven. Be it stamp trading, gathering spit-stained winning tickets at horse races discarded by ignorant punters, installing pin ball machines in barbershops, running racetrack tip sheets, doing paper rounds or flogging used golf balls, if there was a buck (in his mind, always $5 ) to be made, he found it.
His were largely lonely pursuits and as Schroeder reveals, he was a complex personality; introverted, dishevelled, untidy, and as a youth, immature for his age, anti-social and inadequate around girls and later, the women whom he depended on.
He got into Columbia University after failing the entrance test to Harvard (it wanted leaders, not sharemarket whizzes) but at Columbia he fell on his luck when Ben Graham, author of iconic stock market investment book The Intelligent Investor became his tutor and mentor.
Buffett married Susie Thompson, the love of his life for 47 years until she died four years ago. They had three children and although she left the marriage in 1977 in San Francisco to pursue a cabaret singing career, they fronted as a married couple all their life together.
She introduced him to a friend, Astrid Menks, who was his "companion`` for more than 20 years. He married Astrid two years ago.
By DENISE MCNABB - BusinessDay .co. nz...
In reply to:
The world according to Warren Buffett
Posted by : sambala
As financial firms collapse and sharemarkets gyrate, commentators and politicians are arguing over the why and what happens next. One man is shrewdly taking action - spending up large, taking keystone investments in flagship companies.
Warren Buffett is the man of the moment, a man in his element. What makes him tick? Denise McNabb delivers an exclusive advance review of Buffett`s first authorised biography.
When each of the Buffett children turned 10 their stockbroker father, Howard, would take them on a trip from their home in Omaha, Nebraska, to the east coast of America.
Young Warren knew exactly where he wanted to visit - the Scott Stamp and Coin Company, the Lionel Train Company, and the New York Stock Exchange.
It was 1940 and memories of the 1929 sharemarket crash were still raw.
On their way to Wall Street, Warren`s father decided to drop by one of the city`s largest brokerage firms, Goldman Sachs. It had a small office in Omaha but Howard Buffett had never met its boss, Sidney Weinberg. Buffett thinks Weinberg agreed to see his father because he had a child in tow. Weinberg gave them 30 minutes.
"He was the most famous man on Wall Street,`` Buffett recalls in his just-released biography The Snowball, written by Alice Schroder with his full co-operation and with unfettered access to his files, family and friends.
"As I went out, he [Weinberg] put his arm around me and he said `What stock do you like, Warren?`
"He`d forgotten it all the next day, but I remembered it forever.``
Two weeks ago, amid the rubble of once-mighty investment banks and the trillion dollar US financial crisis, 78-year-old Warren Buffett`s Berkshire Hathaway Inc tipped US$5 billion into Goldman Sachs stock, giving one of the two remaining Wall Street investment banks a credit lifeline. He followed up by pouring US$3 billion into General Electric.
He also sounded warnings about the dire consequences for the US economy if the Senate didn`t accept the White House`s US$700 billion bailout of the financial system; "The nation will face its biggest financial meltdown in American history.``
He described the financial collapses resulting from the sub-prime mortgage crisis as "the United States`s economic Pearl Harbor.``
He reminded television viewers of the US Government`s low cost of borrowing and its staying power for the rescue plan investing in mortgage-related securities (the main cause of the present financial meltdown). Bedrock prices meant it would make money, he said. He just wished he had enough cash to share equally in the bailout.
Buffett also drove home the effect in the present market of derivatives, which he has described as "financial weapons of mass destruction``.
The snowball of the book`s title is an investment metaphor for compounding returns, a method that has made Buffett blindingly wealthy. By Forbes` measure, Buffett`s wealth positions him in any of the top four placings of the world`s wealthiest, depending on the stock prices of the day. This week he`s worth around US$58 billion.
Microsoft founder Bill Gates jockeys for top position on the wealth list and he and Buffett are buddies. Buffett helped Gates and his wife Melinda chose their engagement ring, was guest of honour at their wedding and sometimes shares a game of bridge with them. Theirs is an unlikely pairing given Buffett`s long-held disdain for technology stocks. He was a lone wolf railing against the dotcom revolution until the bubble burst.
The Snowball spans 961 pages . Schroeder, an insurance industry analyst at Morgan Stanley, was commissioned by Buffett to write it after she impressed him with her insight and analysis of Berkshire Hathaway, the company Buffett runs and in which he holds the biggest stake.
In this the first sanctioned biography of the man, we learn he was no ordinary child. At age 11 he declared he would be a millionaire by the time he was 35. By the time he reached that age he was one many times over.
"Among the many lessons, some of the best comes simply from observing him. Here is the first: humility disarms,`` says Schroeder.
Her portrait of Buffett`s childhood is astonishingly frank and intimate. He adored and respected his father, Howard, a grocer`s son who gave up a lowly wage in journalism to become an insurance salesman, then a sharebroker, before entering politics as a senator.
He didn`t appear to have the same affection for his mother, who by all accounts was a temperamental and judgmental woman whose mother, grandmother and later sister ended in mental institutions.
CONT....
Tracked by: 0 Boarder
As financial firms collapse and sharemarkets gyrate, commentators and politicians are arguing over the why and what happens next. One man is shrewdly taking action - spending up large, taking keystone investments in flagship companies.
Warren Buffett is the man of the moment, a man in his element. What makes him tick? Denise McNabb delivers an exclusive advance review of Buffett`s first authorised biography.
When each of the Buffett children turned 10 their stockbroker father, Howard, would take them on a trip from their home in Omaha, Nebraska, to the east coast of America.
Young Warren knew exactly where he wanted to visit - the Scott Stamp and Coin Company, the Lionel Train Company, and the New York Stock Exchange.
It was 1940 and memories of the 1929 sharemarket crash were still raw.
On their way to Wall Street, Warren`s father decided to drop by one of the city`s largest brokerage firms, Goldman Sachs. It had a small office in Omaha but Howard Buffett had never met its boss, Sidney Weinberg. Buffett thinks Weinberg agreed to see his father because he had a child in tow. Weinberg gave them 30 minutes.
"He was the most famous man on Wall Street,`` Buffett recalls in his just-released biography The Snowball, written by Alice Schroder with his full co-operation and with unfettered access to his files, family and friends.
"As I went out, he [Weinberg] put his arm around me and he said `What stock do you like, Warren?`
"He`d forgotten it all the next day, but I remembered it forever.``
Two weeks ago, amid the rubble of once-mighty investment banks and the trillion dollar US financial crisis, 78-year-old Warren Buffett`s Berkshire Hathaway Inc tipped US$5 billion into Goldman Sachs stock, giving one of the two remaining Wall Street investment banks a credit lifeline. He followed up by pouring US$3 billion into General Electric.
He also sounded warnings about the dire consequences for the US economy if the Senate didn`t accept the White House`s US$700 billion bailout of the financial system; "The nation will face its biggest financial meltdown in American history.``
He described the financial collapses resulting from the sub-prime mortgage crisis as "the United States`s economic Pearl Harbor.``
He reminded television viewers of the US Government`s low cost of borrowing and its staying power for the rescue plan investing in mortgage-related securities (the main cause of the present financial meltdown). Bedrock prices meant it would make money, he said. He just wished he had enough cash to share equally in the bailout.
Buffett also drove home the effect in the present market of derivatives, which he has described as "financial weapons of mass destruction``.
The snowball of the book`s title is an investment metaphor for compounding returns, a method that has made Buffett blindingly wealthy. By Forbes` measure, Buffett`s wealth positions him in any of the top four placings of the world`s wealthiest, depending on the stock prices of the day. This week he`s worth around US$58 billion.
Microsoft founder Bill Gates jockeys for top position on the wealth list and he and Buffett are buddies. Buffett helped Gates and his wife Melinda chose their engagement ring, was guest of honour at their wedding and sometimes shares a game of bridge with them. Theirs is an unlikely pairing given Buffett`s long-held disdain for technology stocks. He was a lone wolf railing against the dotcom revolution until the bubble burst.
The Snowball spans 961 pages . Schroeder, an insurance industry analyst at Morgan Stanley, was commissioned by Buffett to write it after she impressed him with her insight and analysis of Berkshire Hathaway, the company Buffett runs and in which he holds the biggest stake.
In this the first sanctioned biography of the man, we learn he was no ordinary child. At age 11 he declared he would be a millionaire by the time he was 35. By the time he reached that age he was one many times over.
"Among the many lessons, some of the best comes simply from observing him. Here is the first: humility disarms,`` says Schroeder.
Her portrait of Buffett`s childhood is astonishingly frank and intimate. He adored and respected his father, Howard, a grocer`s son who gave up a lowly wage in journalism to become an insurance salesman, then a sharebroker, before entering politics as a senator.
He didn`t appear to have the same affection for his mother, who by all accounts was a temperamental and judgmental woman whose mother, grandmother and later sister ended in mental institutions.
CONT.......
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Dear Radhika,
May be being truly spiritual is ceasing the mortal sensory actions and merging with the Divine consciousness. May be it is the highest level of meditation with all the six chakras aligned to witness the Divine Play going on unceasingly at the sixth sahastra chakra. If possible, please let me know about TANTRA.
Listen, does Reiki work ? Rightly said, this is to be discussed in a different forum, may be in debates or ideas-from-you forums.
regards
shakti...
In reply to:
Worse slowdown yet to hit markets
Posted by : radhika_nandlal
The one who is truly spiritual actually knows TANTRA well... will write why later... this is not the board. I will get hate posts shortly here if i continue.
see you.
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Forward Contract
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An agreement for the future delivery of the underlying commodity or security at a specified price at the end of a designated period of time. Unlike a future contract, a forward contract is traded over the counter and its terms are negotiated individually. There is no clearing house for forward contracts, and the secondary market may be non-existent or thin.
TC-111008-S-01...
In reply to:
< Enhance Stock Knowledge Skills >
Posted by : TrueCompanion
Dirty float :
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A floating security whose value is not solely determined by free market supply and demand pressures but also by interventions of the concerned authorities.
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TC-101008-S-01
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Short-selling
A temporary ban on "shorting" nearly 1,000 financial stocks expired in the US at midnight on Wednesday, just hours before Wall Street suffered its worst plunge of the week. This meant that hedge funds could resume the pariah-like practice of betting on a fall in the shares of fragile companies. There are suspicions that short-sellers were instrumental in a sudden collapse in the shares of General Motors and Morgan Stanley, both of which had been previously shielded by the ban.
Panic
Unadulterated panic has set in for many private investors who are afraid to stand by while their nest eggs shrink. In the US, private ownership of shares is much more common than in Britain, and many people have been liquidating tax-efficient retirement accounts, known as the 401k.
"The market is just panicked," said David Whys, chief economist at Standard & Poor`s in New York. "Everybody just wants to get their money and put it under the mattress."
Unprecedented sums of money are being pumped into government bonds, and other "safe havens" such as gold and platinum are seeing prices rise.
BY Phillip Inman and Andrew Clark ...
In reply to:
G-7: `Urgent action` needed
Posted by : sambala
Fear takes over from reason as traders see no end to turmoil
Panicked investors yesterday pushed the index of Britain`s top 100 companies to a four-year low as fears took hold that politicians had lost control of the worsening bank crisis.
Brokers said concerns continued to plague the markets that individual efforts by G7 governments were proving haphazard and shares would fall as long as politicians were unable to arrest the deteriorating position of banks.
London`s FTSE 100 index slumped almost 9% to register its worst week since the crash of 1987. The FTSE 100 has plummeted 21% over the week - wiping more than £250bn off the value of stocks in the process.
On Wall Street, the Dow Jones Industrial Average plunged by more than 600 points in the first few minutes of trading, but recovered some of its losses later.
Anthony Conroy, head trader at BNY ConvergEx in New York, said: "There`s a tremendous amount of emotion in the market. People are trading emotionally, rather than intellectually."
Market participants said there was a sense of scepticism about political action to dampen the crisis, with few holding out much faith that governments can act in a united fashion to heal financial wounds.
Big fallers in the US included the insurer AIG and banks Morgan Stanley, which saw its shares plunge 34%, making a 65% drop this week alone, along with Goldman Sachs, as investors waited uncertainly to see the precise form of aid and financial guarantees on offer from public authorities.
"Fear has been running rampant all over the street. Fear and greed, that`s what rules the street," said Dave Henderson, a floor trader on the New York Stock Exchange for Raven Securities Corp. "I think the carcass has been stripped to the bone."
On the US markets, losses for the year to date have reached $8.3 trillion, based on falls in the value of 5,000 top publicly traded American companies.
The FTSE 100 finished below the 4,000 mark at 3932.1 - its lowest close for more than five years.
Further falls
Chancellor Alistair Darling warned that it was "essential" that the world`s leading economies took action to stabilise financial markets.
Darling, in Washington for meetings of the G7 finance ministers and the IMF, said that it was not enough to "just talk about these things".
However, most UK banking analysts advised their investor clients to steer clear of the sector until the shares had fallen further.
Investment bank Credit Suisse led the way yesterday with a report declaring that while banks had fallen in some cases by more than 90% from stockmarket highs and to 80% of their basic asset value, investors should wait until they had fallen further before buying shares.
Analysts said stockmarket falls on both sides of the Atlantic could be explained by other factors, including tough times for hedge funds, the Yom Kippur Jewish holiday and the febrile nature of stockmarkets, which can lead to panic.
Yom Kippur
Like other investors, hedge funds have been selling heavily in recent weeks. A quarterly redemption deadline, which allows investors to pull out their money from hedge funds each quarter, was reached at the end of September. Redemptions were understood to be high after a poor year for the industry, and forced many hedge funds to sell their stock market holdings.
The Jewish holiday of Yom Kippur meant Wall Street`s trading floors were less crowded than usual on Thursday, when the US markets suffered their biggest fall in percentage terms since 1987. A lack of volume can aggravate volatility, making swings in price wider than usual.
For superstitious investors, Yom Kippur has resonance, coming shortly after the new year celebration of Rosh Hashanah. The great crash of 1929 began at roughly the same time of year, prompting an adage among Jewish investors that it is wise to "buy on Rosh Hashanah, sell on Yom Kippur".
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