How to earn from the stock market even during the bear market?


With the stock market in “red” territory nowadays, I would like to bring you back 8 years ago to a company that mostly love by Filipinos around the world. In this article I will show you how would your money grow if you started investing in the stock market by regularly investing even 5,000 pesos in a yearly basis with a single company.

As you have learn, there are two ways how you can earn from the stock market. You can earn through price appreciation and through dividends may it be in the form of cash or stocks. In this illustration I will show you what would be your money’s worth if you started investing 8 years ago, and the company that you are supposed to be investing was your favorite JFC or Jollibee Foods Corporation. Of course you know about this giant company listed in the Philippine stock market.

Below is a simple illustration.

JFC Gains

Regularly Investing

The data above shows an investor is investing a minimum Php 5,000.00 in a “yearly” basis from 2008 to 2015. With the investment the investor start to buy shares of JFC at first the number of shares bought are many and gradually decreases as the stock price increases (from 130 shares to just 20 shares). The investor will start to buy shares every January of each year. The total invested amount is Php 37,607.20.

Dividend Payments

Jollibee Foods Corporation gives a regular dividends to its share holders and the investor has benefited from it since 2008. It has given dividends 19 times in a 8 year span ranging from Php 0 .25 to Php 2.00 when totaled its value is Php 13.01. The total earned dividends received by the investor less than its commission of 10% is Php 4,451.85.

Commission Payments

In every transaction that you make in the stock market through a broker you will be charged with a commission may it be buying or selling stocks. With this I am using the computation of COL Financial for the commissions for every transactions it appeared in the above table in red fonts. Buying commission amount is Php 110.94 and Dividend commission amount is Php 494.65 total commission fee is Php 605.59.

Value Computations

By regularly investing Php 5,000.00 in JFC the moneys’ worth today is already Php 97,290.91 from a total of Investment cost of Php 37,607.20 only it has 206% growth rate. See computations below.

JFC Gains1

Price Appreciation

JFC price action

One way to earn in the stock market is the price appreciation of your favorite stocks. With the price action of JFC from 2008 to present it is not necessary to push the panic button to exit because in the long run the gains will still be accumulated base on its 8 year performance.

Happy Investing everyone.

P.S. I want to hear from you after reading this article please send your comments below. If you find this article worth sharing, share it now to your friends who still have doubts investing in the stock market. You may also subscribe on this blog on the subscription tab on the upper right part of this page.

The Psychology & Habits of Successful Investor


“Sharing this excerpt from chapter 2 of the book Secrets of Millionaire Investors by Adam Khoo

Secrets of Millionaire Investors_page272_image4

Very often what sets average and successful investors apart is their psychology or their way of thinking. Although all master investors use very different strategies and investment tools that may even contradict each other, they all share the similar psychological makeup that makes them successful.

Here are seven of the most powerful success habits of successful investors.

1. Buy On Strict Rules & Not Emotions
All successful investors have developed a time-tested and proven system for selecting, buying and selling investments in a way that makes them money consistently. They always buy and sell securities based strictly on a set of clearly defined rules or investment criteria. For example,Warren Buffett will only buy a company if it has shown consistent earnings growth over five years, has little debt, has a high return on equity, has a strong management team and is selling at a price that is way below the company’s intrinsic value. If a stock does not meet every single criterion, he does not buy!
Successful investors never allow their decisions to be swayed by their emotions or by the advice of other people. For example, many successful investors have a rule for selling their investments and cutting their losses once their investments fall 10%-20% below their purchase price.The moment this happens, they sell without thinking twice.They never let fear, pride or ego get in the way.

On the other hand, most average investors (who keep losing money) do not have a system for investing. They buy and sell based on the opinions and advice from their friends or relatives (who are usually broke too).Their decisions are usually driven by the emotions of fear and greed, instead of a set of well-defined criteria. For example, when they see a stock rallying like there is no tomorrow, their greed for quick profits and their fear of losing out drives them into buying, even if the stock may have lousy earnings or may have broken other rationale buying criteria. Sure enough, the stock come tumbling down the moment they make their purchase, causing them to lose their hard earned money.

And when the stock’s price falls 10%-20% below their purchase price, they do not follow smart selling rules and cut their losses early. Instead, their ego and pride gets in the way.Their fear of making a loss makes them hold on to their losing position. They say to themselves ‘it will come back again’ or ‘it cannot go down any lower’. Sure enough, the stock sinks lower and lower until they are forced to sell at a massive loss.

2. Admit Your Mistakes Early.
Successful investors know that no matter how great their investment strategy is, it is never hundred percent accurate. They know that no matter how smart or experienced they are, they too make mistakes.

The difference between successful investors and average investors is that the former admit their mistakes early. Once successful investors know they have made a wrong investment decision (the stock price moves against them), they will sell and minimize their losses immediately. On the other hand, most average investors hate to admit that they made a bad decision.They will start giving excuses and hold on to their bad investments in dissent. As a result, they make huge losses that wipe out any gains they may have made in the past.

‘It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong’
– George Soros, One of the World’s Most Respected Investors

As quoted by legendary billionaire investor George Soros, master investors know that they may be wrong from time to time. However, if they minimize their losses by admitting their mistakes early, they will still make huge profits from the gains they make from their good investments. For example, take a look at a typical profit & loss chart from an average investor.

chart 1

For simplicity and easy calculation, I have standardized the cost price and quantity of all six stocks in this hypothetical portfolio. As you can see, most investors would make some good investments and some bad ones. Typically, the losses from the bad investments would wipe out all the profits made from the good investments, sometimes even resulting in a net loss (a bracket signifies a loss).

chart 2Even if a great investor gets half his stock picks wrong (which is highly unlikely), he would still make a profit if he knows how to sell his losing investments once it falls 10% below his purchase price (i.e. $45).As you can see from table 2 below, even if you were to make 3 bad stock picks out of 6, you would still make an 18.67% return by cutting your losses early. So can you imagine how successful you can be when you learn how to pick 8 out of 10 great stocks and minimize your losses on the 2 bad ones?

This is why US presidential investment advisor Bernard Baruch once said; “Even being right three or four times out of 10 should yield a person a fortune if they have the sense to cut losses quickly.”

3. Become An Expert and Don’t Rely on Experts
The third success habit of successful investors is that they only make investments in areas in which they have an expertise. Great investors make investment decisions with a high probability of success not because they are lucky or because they have a crystal ball. Their successful track record comes from the fact that they have a tremendous depth of knowledge and expertise in their area of investments.

All this comes from hours of research and study.Warren Buffett is so good at being able to pick companies that will increase in value simply because he has a very good understanding of how businesses work. He will spend hours reading the company’s annual reports and dissect every price of information before making a decision. The reason why Warren Buffett makes very few bad decisions is because he only invests within his circle of competence. He only invests in businesses which he knows and understands inside out. The reason why Buffett avoided investing in any Internet businesses during the dotcom boom of 1998-2000 is because he did not understand their business models. By so doing, he avoided one of the greatest market crashes in recent history.

‘The market, like the lord, helps those who help themselves. Unlike the lord, the market does not forgive those who know not what they do’
– Warren Buffett

On the other hand, the average investor tends to invest in stocks
& other financial securities without having a thorough understanding of what they are doing. I am usually shocked to hear that people actually buy shares in a company without doing thorough research on the stock’s financial history, growth prospects, management strategy and historical price patterns. Instead, they buy on advice from ‘other experts’ who they believe have all the right answers. Remember, that making money in any field of endeavor is never easy, whether it is in business, Internet marketing, sales or investing. If you want to be a great investor, you must be willing to spend the time to learn thoroughly and be an expert in the subject of investing!

4. When there is Nothing to Invest in, Don’t Invest
One of the main reasons why many professionally managed funds are not able to consistently beat the S&P 500 is because they are required to invest 80% of their funds into the market at any one time. If they were to hold more than 20% of their assets in cash, they will be criticized for not putting the money to work. The problem is that it is not always a good time to invest and you will not always find investments that match the investment criteria of a successful investment. By constantly having to be invest in the market; they suffer as much losses from bad investments as they do enjoy the gains from good ones. The trouble is many amateur investors make the same similar mistake and are quick to jump into the first investment that comes along.

One thing about all great investors and traders is that if they cannot find an investment that confidently meets all their criteria, they do not invest or trade. Successful investors have the patience to wait indefinitely until they find an investment with a very high probability for success and a low risk of loss. Only then do they make the confident decision of taking a large position.

5. Take 100% Responsibility for Your Results
As a successful investor, you must have the attitude of taking full responsibility for the results you have acquired, both success and failure. Lousy investors tend to give excuses and lay blames whenever they lose money. Their usual responses include: ‘my broker gave me the wrong advice’, ‘the market went against me’ or it’s just bad luck’. As a result of not admitting that they made a wrong decision, the average investor does not learn from his mistakes to become a better investor. Successful investors are the first to admit that they made the wrong decisions and used the wrong strategy. They learn from their mistakes, become wiser and move on to their next investment.

6. Be Passionate About Investing
You must know that passion is the most important ingredient for being successful in any field of endeavor. The world of investing is no different. If you do not enjoy looking at charts and studying financial data from annual reports, then you will never be a successful investor. If you are purely investing with the motivation to make a quick buck then you will probably be like the majority of people who will lose money and give up.

‘I have enjoyed the process (of investing) far more than the proceeds, though I have learned to live with those, also’
– Warren Buffett

Tiger Woods did not chose to play golf because of the money; it was because he loves the game. Celine Dion (or any other successful artiste for that matter) chose to become a singer not because of the money, but because she loves to sing. Similarly,Warren Buffett started investing in stocks not because he was motivated by materialism; it was because he loved investing. This is evident by the fact that after making US$42 billion in the markets, he still lives in a $31,500 house that he bought 30 years ago. And what did he do with most of his wealth recently? He gave it all away to charity. In fact,Warren Buffett once remarked in a speech to his shareholders,‘we should pay to have this job!’

So why is passion so important to success? Remember that to be good in anything, you have to be an expert in it! The only way you can be an expert in something (i.e. investing) is if you live, breathe, eat and sleep investing. When an investment guru listens to the weather forecast, he thinks of how it will impact oil prices and energy stocks. When he shops at the supermarkets, he notices the best selling products and the companies (stocks) that sell it! When he reads the news to find that interest rates are rising, he thinks about how it will affect bond prices and financial stocks. The only way you can be totally focused in something is if you truly have a passion for it.

7. Reduce Risks & Maximize Returns
The average investor believes that in order to make high returns from investing, he has to take big risks! The successful investor on the other hand is usually risk averse. He believes that returns are not related to risk. Instead, risk comes from not being an expert at what you are doing. The master investor will only invests if he finds an investment with a very high probability of success, one with very high potential upside with limited downside. So, only invest when with minimal risks and very high returns.

Now that you have a clear understanding about the basics of investing, let’s get this party started by diving into the first growth strategy…

Basic Stock Market Online Trading


Although stock market trading has been discouraged by many financial advisers it does not mean that we cannot learn the art of doing it. Stock market trading has guaranteed lot of earnings in a short span of time when used correctly and in reverse can lose a lot of your hard earned money if used inappropriately. In this article I am sharing how I understand the basic of stock market trading and gain from it. Here are some of the very basics to learn while venturing your way from a stock market investor to become a “part-time” stock market trader.

Stock Market Online Trading tools:

  • Personal Computer or Laptop
  • Internet connection
  • Stock Market Broker with Stock Charts
  • Notebook
  • Pen

Learn the 4 Stock Market Stages

To trade stocks successfully, you must first understand the four stock market stages that individual stocks and the overall market go through. These cycles tell you if you should be long, short or in cash.

Once you are able to identify what stage it is in, you can then trade accordingly to those characteristics.

After a while you won’t even have to think about whether you should be long or short. You will know, without question, exactly what you should be doing NOW. You will either be focusing on long positions, short positions, or you will stay safely in cash – just by glancing at a chart!

Here are the four stages that stocks go through. This happens in all time frames whether it is a monthly chart, weekly chart, daily chart, or an intraday chart.

stages

Stage one

Stage 1 is the stage right after a prolonged downtrend. This stock has been going down but now it is starting to trade sideways forming a base. The sellers who once had the upper hand are now beginning to lose their power because of the buyers starting to get more aggressive. The stock just drifts sideways without a clear trend. Everyone hates this stock!

Stage two

Finally stocks break out into Stage 2 and begins the uptrend. Oh, the glory of stage 2!! Sometimes I have dreams of stocks in Stage 2! This is where the majority of the money is made in the stock market. But here is the funny thing: No one believes the rally! That’s right, everyone still hates the stock. The fundamentals are bad, the outlook is negative, etc. But professional traders know better. They are accumulating shares and getting ready to dump it off to those getting in late. This sets up stage 3.

Stage three

Finally, after the glorious advance of stage 2, the stock begins to trade sideways again and starts to “churn”. Novice traders are just now getting in! This stage is very similar to stage 1. Buyers and sellers move into equilibrium again and the stock just drifts along. It is now ready to begin the next stage.

Stage four

This is the dreaded downtrend for those that are long this stock. But, you know what the funny thing is? You guessed it. Nobody believes the downtrend! The fundamentals are probably still very good and everyone still loves this stock. They think the downtrend is just a “correction”. Wrong! They hold and hold and hold, hoping it will reverse back up again. They probably bought at the end of Stage 2 or during Stage 3. Sorry, you lose. Checkmate!

Here is an example of a 1 day chart of SMC (San Miguel Corporation):

SMC Stages

Stock market stages occur in all time frames on every chart you look at. This could be a five minute chart, day chart, 1 month chart or 1 year chart.

Generally, you want to stay in cash when a stock (or the market itself) is chopping around in a stage one. In stage two you will want to be aggressively focusing on long positions. In stage three you want to be in cash. In stage four you want to be aggressively focusing on short positions.

P.S More Basic Stock Market Online Trading on the next article

Stock Market has fallen


Have you seen the movie “Olympus has fallen” wherein the term “Olympus” means the White House the seat of the most powerful person in the world, the president of the USA was captured by a group of person that has plan to terrorized the people of America? We’ll it has nothing to do with my new post about the downtrend of the stock market! Lol

Anyway for almost 2 months now after we have seen the stock market reaches it record breaking high of more than 8,100 points and now it is going down back to 7,300 points. What does it mean? It just simply means that “what goes up will also go down”. Just always remember that stock market investing is just like most of the sporting events.

nba finals

A basketball player has to bend his arms and legs in order to jump and shoot the ball into the ring.

archers_clash_of_clans

An archer should pull back his arrow before hitting his target.

With the downtrend of the stock market for the past months, we just want to think of it as a way for the stock market to bounce back and hit our target price. As long term investors we have to be thankful for this market correction since this will be our chance to buy and accumulate more shares of our favorite companies in a more discounted price.

“When you are holding stocks, if it goes up, don’t be too happy; when it goes down, don’t be too sad. Otherwise, how? Your life will also be fluctuating and you’ll die of a heart attack. If you really lose sleep over it, maybe the best way is to keep the money in the bank.” – Peter Lim

Too Much Emotions Will Kill You


The Philippine stock market has been in the “red zone” throughout the previous week except on Friday when it reverses and gained to as high as 180 points and closes with 75 points. Some analyst has termed it as a market correction or consolidation.

Investopedia defines correction as a “reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index to adjust for an overvaluation. Corrections are generally temporary price declines interrupting an uptrend in the market or an asset. A correction has a shorter duration than a bear market or a recession, but it can be a precursor to either.”

PSE

This period of the market cycle are mostly favorable to long term investors of the stock market. This is the time to accumulate more shares of your favorite companies at a “discounted price”. As the famous Warren Buffet says “Sell when others are greedy and Buy when others are fearful”, the “buy button” may apply to this scenario. For stock market beginners this may also be the best time to enter the market since prices of stocks are low. Some may even ask Will it still go down? How low will it go? probably these questions may linger in our heads as beginners. But still the stock market cannot be predicted perfectly as it is full of emotions as I have written on my previous article “Understanding the 14 cycles of Emotions of the Stock Market”. These emotions makes the stock market unpredictable thus it requires a lot more of understanding as we go along on our investment. It is like much more of understanding a person’s behavior since stock market are driven by people and every person has its own personal behavior towards investing. This maybe confusing but that is really how stock market works and the Philippines has no exemptions to this. So to be able to contain and win over those emotions we must be able to act accordingly and the key is to control our greed and fear when it comes to investing. Long term is the very best way to learn the reactions of emotions of the stock market.

One example of emotion base investing that affected on this week trading is Meralco’s (MER) stock price which increase on Friday to as high as Php 283.00 price per share from a low of Php 270.00 it was an overwhelming Php 13.00 pesos increase in a single day. One very obvious factor affecting it is the current price hike of electricity that was published on the news on TV, broadsheets, radio and online that brought more emotions of investors to buy more MER shares and resulted to an abrupt rise on its stock price. And together with these power hike issues most of the power industry listed in the stock market have gone high on Friday’s trading.

EDC

So emotions has got really something to do in the stock market thus controlling it is really necessary in order to have all its positive on your side. Speculations may pose high risks especially to those beginners in the stock market due to so much emotions like being very greedy when the market goes high and become very fearful when the market goes the other way thus losing your hard earned income to drain.

trader
Image Credit: http://squaredawayblog.bc.edu/

Four years ago I was into this emotion base investing, my first entry into the stock market makes me worry and sleepless for a week since it went to a bloody red portfolio. It was because I feel very fearful looking at my Php 5,000 investment becomes Php 3,000 for only 3 days after I bought my stocks. But when the time my stocks started to gain a sigh of relief was in the air especially when it break even. Once my stocks started to grow more  and more another emotion is getting into my stomach the emotion of being greedy. My questions during that time was “Is it already time to sell these stocks? How about if it will still go up the next day? Will I already sell it since I already profited? But I want to profit more so I will sell it the next day”. Emotions greatly affect your investment if you cannot find a way to control it.

Steps to overcome emotions :

  1. Define your investment goals
    • You are into investing because you have certain goals to achieve, may it be buying a house or a car, for your kids education, to travel to different places and many more. But without a specific goal for a certain period may confuse you on what will be the priority. So defining your investment goals must be a top priority.
  2. Develop Strategies to achieve that goal
    • A simple allocation of some percentage your monthly income is a strategy to reach your goals. The discipline of asking yourself before you spend on something is another strategy.
  3. Evaluate your Strategies
    • With all your set strategies there maybe some of it that needs more adjustment, thus evaluating or checking your strategies regularly can help you to overcome your emotions towards investing.
  4. Continue to Learn
    • Continuous education on stock market investment is a great way to achieve success. This must be your first priority to invest in yourself before anything else. Derek Bok once said “If you think Education is expensive, then try Ignorance”

P.S. You can leave a comment below on this article

My rewards from Truly Rich Club


One of the reasons why I started investing in the Philippine Stock market is because of Bro. Bo Sanchez’s book “My Maid Invest in the Stock Market”. At first I thought of Bro. Bo as an evangelist and nothing to do with personal finance or any investment.
Join the Truly Rich Club

When I started investing in the stock market way back in October 2011, I also joined the Truly Rich Club but after months of being a member I stopped since I thought that I can do investing in the stock market on my own.  Since then my investment is growing slowly although it is in the positive side but not the same of other truly rich club members are gaining. And because of what other members are experiencing on their portfolio, I decided to renew my membership last October 1, 2014. Since then (although not advisable) I started to track my stocks on a daily basis for 20 weeks based on the recommendations of what stocks to Buy, Sell or Hold base on its SAM (Strategic Averaging Method). This is my way of checking if being a member really helps in improving my growth in the stock market. I inserted here the data of the tracking of gain and loss you may see it when you continue reading below.

Figure 1. From September 29, 2014 – October 31, 2014

Bal6

My first five weeks is not looking good as it is in a red mark or a (negative) Php 485.05 it means I am losing my investment.

Figure 2. November 3, 2014 – December 5, 2014

Bal4

The second five weeks is already in the positive side I am gaining an amount of Php 7,543.88 this is way above from my previous loss on the first five weeks.

Figure 3.  December 8, 2014 – January 9, 2015

Bal4

The third five weeks is the most impressive since I gained Php 16,174.76 it is more than 100% of the previous weeks gains.

Figure 4. January 12, 2015 – February 13, 2015

Bal2

The fourth five weeks and the last weeks that I am following my portfolio it gained a total of Php 10,237.95. And after the Valentines day of this year I already stopped tracking my portfolio and focused more my attention on another productive activity.

Figure 5. Summary of Gains and Loss

Bal1

For a period of 20 weeks the total amount that is added in my portfolio was a total of Php 33,471.54.

This is nothing bad for not doing anything from October 2014 – February 2015. For a monthly subscription of Php 497.00 only, the return is more than what I have invested.

Disclaimer: The figures above shows only my actual personal gains and losses in my own portfolio since I joined the Truly Rich Club and followed its suggested stocks base on their SAM (Strategic Averaging Method). This is not a 100% guarantee that all members will be gaining or losing that much in the stock market. Personal investment discipline still highly recommended when investing in the stock market.

10 Must Read Books on Investing for Beginners


“As we grow to learn investing in the stock market, we should also continue to seek knowledge from the experts on some of their techniques and wisdom on the basic of stock market investing. Below here are some of the important books that I will be sharing to you that I also found during my research. Although authors of these books are mostly from the US it is but OK to have them as reference since the US Stock Markets is similar to the Philippine Stock Market. These books are can be of more use to us Stock Market Beginners and available on our local bookstores” 

Investing your money is a smart way of saving for your family’s future, as well as your retirement. This is using your money on investments like stocks, real estate, bonds or mutual funds. By investing, you can make your saved money grow while you are still working on your regular job. If you are planning on making an investment but you are not sure what to do, the best books on investing can help you understand it better. By reading these books, you will be more prepared and you can choose the right investment to make to easily grow your cash.

  1. Five Rules of Successful Stock Investing

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This book was written by the reputable author, Pat Dorsey. He is an authority when it comes to topics on investment. He is the director of Morning Star’s Equity Research. The company is well known for its 5 star scale rating on individual stocks, as well as mutual funds. As the title suggests, this book contains information on the five rules to become successful on investing through stocks. This is perfect for beginners because it is easy to understand. The five rules stated on the book include do your home work, find economic moats, have a margin of safety, hold for the long haul and know when to sell. Each of the rules is then explained for better understanding. In this book, you will learn about stock analysis, choosing a good investment and determining the good companies from the bad ones.

  1. Use the News

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Use the News: How to Separate the Noise from the Investment Nuggets and Make Money in Any Economy is an investment book written by Maria Bartiromo. She is a trusted anchor and journalist who currently hosts The Wall Street Journal Report. She is also the managing editor of the said show. Her book will help beginners learn the things that are important on stock investments. You will learn the steps on how to do your research and make your choices. She shares the tips, techniques and strategies she learned from reporting live on the New York Stock Exchange, as well as interviewing top investors.

  1. 9 Steps to Financial Freedom

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Suze Orman, a renowned author, shares the secrets on how you can be debt free and grow your money. The good thing about this book is that it does not just teach you how to invest wisely but it also shows how you can better manage your money. This is hitting two birds in one stone. By managing your money well, you will be able to pay your debts, spend for your needs and save for your future. This way, you can enjoy the profit that you will get from your investments.

  1. The Interpretation of Financial Statements

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As the father of value investing, Benjamin Graham’s book The Interpretation of Financial Statements is one of the must have books on investing. In this book, you will learn about the principles of investment. Learn all the important things that you need to know in choosing the company to invest in including understanding financial statements and balance sheets. As a beginner, you will find the concept easy to understand as Graham was able to explain it in a simple way. After reading the book, you will find yourself filled with knowledge on the most important things that you need to learn when you start investing.

  1. How to be a Billionaire

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Martin S. Fridson is an author and the head of FridsonVision LLC. This company is a popular financial research firm operating in New York. How to be a Billionaire gives you a closer look on how self made billionaires were able to attain their financial status. If you want to know the secrets behind the success of Bill Gates, Richard Branson and J. Paul Getty, this book is a must read. Learn from the experts on how to invest your money well and get rich.

  1. Security Analysis

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This is another book by Benjamin Graham, which was written with his colleague David Dodd. David Dodd was not just an author; he was also a professional investor and financial analyst. This book is used as a textbook at the Columbia Business School in Manhattan. It talks about how you can make investments, even on companies that may not be considered secured by others. Learn how to earn more and avoid loss on your investments with this classic book.

  1. Common Stocks and Uncommon Profits & Other Writings

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Dubbed by Morningstar as one of the great investors of all time, Philip Fisher’s is a trusted name when it comes to investing. He is a successful stock investor, author and one of the people that started the principle of growth investing. Since the book was published in 1958, it remained as one of the best selling investment books. A lot of investors use this book as their guide to become successful on their investments. Even if you are just new to investing, you will never go wrong with this book in your hand. Learn from the expert and grow your money like he and other investors did.

  1. The Essays of Warren Buffett

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If you want to become like Warren Buffet, this book will give you valuable information on investing and business, straight from Warren Buffet himself. It contains letters personally written by Buffet to other shareholders throughout the years. This was arranged by Lawrence Cunningham by putting together those with the same topic. Learn the techniques on how to choose the best business to invest in and when to acquire stocks.

  1. One Up on Wall Street

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One Up On Wall Street: How To Use What You Already Know To Make Money In The Market is a bestselling book by Peter Lynch. He is known as the top money manager in America. This book will tell you how you can become successful in your investment like the Wall Street professionals. Learn how to determine investment opportunities around you and find out which of them could earn you more profit for a long time.

  1. The Intelligent Investor

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As the inspiration and teacher of great investors like Warren Buffet, works of Benjamin Graham on investing are must haves for those who are in the industry, as well as those who are planning to enter the world of investment. Learn how to make intelligent investment and prevent placing your money on businesses that may not earn you some cash. Understand important investment principles from the guru himself.

Take time to read these books on investing before starting to invest your money. The knowledge and tips that you will get from the authors will give you a better chance of doing well in your investments. After all, they are the experts on this field and they know the ins and outs of this industry.

Benefits of Stock Market Investing


Actually you have a lot of things you can do with your hard earn money. You could buy from the latest smart phones or even your dream car; you can even travel around the world with the use of your money. On the other hand you can also be practical and invest your money in the stock market and let it work for you. Let’s be realistic. Spending your money to your favorite gadgets and dream vacation is more fun than investing or saving. So why are you here reading and learning on investing in the stock market rather than go and have your dream vacation while spending your money? Anyway the answer maybe you want to know the benefits of the stock market. With investing in the stock market provides a lot of benefits to each individual investor. The list below maybe new to you but let’s try discussing it the way I understand it: – Compound Interest – Time Value of Money – Tax Deferral – Diversification ????????????????????????????? Compound Interest Compound Interest is a miracle of the financial world. Compound interest, when given time, helps your money grow faster and faster. Time Value of Money The Time Value of Money is a simple concept. Basically, it means that the more time you give your money to work for you, the more your money will make for you. Tax Deferral Tax Deferral is the greatest investing benefit has given to individual investors. The ability to delay paying taxes on your money can virtually double your investment power. As long as you do not frequently engage in constant buying selling of your stock there no taxes will be imposed. Diversification Diversification enables you to spread out your risk so you don’t have to put all of your hopes and dreams behind the success of a single investment.