The Role Of Your Investment Attitude

Many people often wonder why some make it in the stock market and some don’t. They sometimes sigh and say, “They have all the luck, that’s why.” True enough, luck can be a factor in one’s success or failure in the stock market. As most experts will allow, trading at the stock market is very similar to gambling. They both involve a great deal of risk. But unlike gambling, success or failure in the stock market is not solely dependent on luck. It has much to do with two things information and attitude.

Information has much to do with success or failure at the stock market. First of all, information makes stock trading more than just guesswork. Analyzing trends can help investors make educated guesses regarding their investments.

One important aspect that often goes unnoticed is the proper attitude investors must have towards investing. Too often, investors fall prey to the wrong type of attitude in investing. This leads to wrong decisions, and impulsive buying or selling. What are these attitudes, and how should they be avoided?

1. Many Investors Exhibit an Impatient Manner
Unfortunately, many investors get into the mix just because they are under the impression that they could get rich overnight as result of a few investments. This is so far from the truth. In fact, successful portfolios are built over time. Stocks take time to mature and appreciate. If the investor never realizes this, he or she might be looking to make a quick buck. And when he or she is unable to, he or she may become discouraged or may sell his or her shares for a lower price.

2. Many Investors Look to Take the Risk to Be Overnight Millionaires
Warren Buffet, the Wall Street Tycoon has this advice for investors: don’t bet all your marbles on stocks that seem to be skyrocketing today. They could crash tomorrow. Buffet confides that he has always built his empire over stocks that were stable and exhibited continued growth over the years. He says that these stocks are preferable to volatile stocks that could crash anytime.

Other investors fail to diversify their portfolios. Depending on how much risk one is willing to take, an investor should divide his or her portfolio into low-risk, medium-risk, and high-risk categories, and invest in such stocks. Some people are too risky and put their heads on the guillotine with high risk investments. Others will not risk their necks on any investments. One should choose an attitude that is just right for his or her risk tolerance.

Land Banking A Great Investment For Long Term Capital Growth

Land banking, over the longer term, has shown better average gains than either shares or property, and with less downside risk, with an average UK growth of 920% in 20 years!

Once the preserve of rich, today, even smaller, in the know investors are taking advantage of this opportunity to make substantial capital gains.

Land Banking – What is it? Land banking simply involves the acquisition of land, which does not enjoy planning consent, in advance of expanding urbanization.

With the granting of planning consent, the price of an open space parcel, not yet subject to urban development pressures, normally rises in value.

Land Banking in the UK In 2004 alone, agricultural land in the UK appreciated in value between 16% and 30%, depending upon its geographical location.

In fact, over the past 20 years, the AVERAGE increase in UK Land has been a staggering 920%! In many instances, investors who have bought land in the right place at the right time have exceeded these average gains.

Not only has land risen in value dramatically, it has risen in a smoother upward path with less downside volatility than either stocks or property.

UK Demand Exceeding Supply The UK is one of the most densely populated countries in Europe and has a rising population driven by a huge influx of migrants from overseas.

Two facts will illustrate the potential of land banking in the UK:

There is a need for up to 3,500,000 new homes over the next 15 years, rising to 4,400,000 new homes over the next 20 years.

Over the last 30 years, the demand for new homes has increased by 30%. In the same period, house-building rates have dropped by over 50%.

Supply must catch up with demand, and buying land in the UK therefore offers investors a great opportunity to make substantial capital gains.

Location is the Key! Under developed land, such as Greenbelt, agricultural and forestry, is cheaper than land that currently enjoys planning consent. The way to make big capital gains in land banking, involves buying land in specific areas in the hope of future development.

Pre-planning purchase of green belt, agricultural and forestry land is nothing new. Astute investors have been doing it for years.

Investors simply need to study specific areas for the likelihood of future planning permission being granted, which will lead to an increase in the value of the plot purchased.

How to Make Big Land Banking Capital Gains Every developer knows that each town and city must grow outward, and the land most available is agricultural, greenbelt and forestry.

Land without planning permission which is subsequently included in a local authority’s unitary development plan (UDP), will potentially benefit from a significant increase in value.

With the granting of a change of use, a site’s value can increase substantially. However, the change of use category granted, i.e. residential, commercial recreational etc, will ultimately dictate the change in value of the plot.

Land Banking Risks Any investor considering land banking needs to give careful consideration to site selection, and purchase sites which are within the path of progress and future urbanization, but also have a high probability of future development.

Land Banking is a long-term investment, as resale durations and amounts are variable.

Taking Advantage of the Land Banking Opportunity There are many specialist companies catering for international investors wishing to own UK land. An investment in land can be cheap, as many developers buy plots, divide them, and sell them in smaller parcels.

Nature And Introduction Of Investment Decisions

An efficient allocation of capital is the most important finance function in the modern items. It involves decisions to commit the firms funds to the long term assets. Capital budgeting or investment decisions are of considerable importance to the firm since they tend to determine its value by influencing its growth, profitability and risk.
The investment decisions of a firm are generally known as the capital budgeting, or capital expenditure decisions. A capital budgeting decision may be define as the firms decisions to invest its current funds most efficiently in the long term assets in anticipation of an expected flow of benefits over a series of years.

The long term assets are those that affect the firms operations beyond the one year period. The firms investment decisions would generally include expansion, acquisition, modernization and replacement of the long term asset. Sale of division or business is also as an investment decision. Decisions like the change in the methods of sales distribution, or an advertisement campaign or a research and development programmed have long term implications for the firms expenditures and benefits, and therefore, they should also be evaluated as investment decisions.

It is important to note that investment in the long term assets invariably requires large funds to be tied up in the current assets such as inventories and receivables. As such, investment in fixed and current assets is one single activity.

The following are the features of investment decisions,
The exchange of current funds for future benefits.
The funds are invested in long term assets.
The future benefits will occur to the firm over a series of years.
Importance of Investment Decisions
Investment decisions require special attention because of the following reasons:
They influence the firms growth in the long run
They affect the risk of the firm
They involve commitment of large amount of funds
They are irreversible, or reversible at substantial loss
They are among the most difficult decisions to make

Growth

The effects of investment decisions extend into the future and have to be endured for a longer period than the consequences of the current operating expenditure. A firms decision to invest in long term assets has decisive influence on the rate and direction of its growth. A wrong decision can prove disastrous for the continued survival of the firm; unwanted or unprofitable expansion of assets will result in heavy operating costs to the firm. On the other hand inadequate investment in assets would make it difficult for the firm to compete successfully and maintain its market share.

Risk

A long-term commitment of funds may also change the risk complexity of the firm. If the adoption of an investment increases average gain but causes frequent fluctuations in its earnings, the firm will become more risky. Thus, investment decisions shape the basic character of a firm.

Funding

Investment decisions generally involve large amount of funds, which make it imperative for the firm to plan its investment programmers very carefully and make an advance arrangement for procuring finances internally or externally.

Irreversibility

Most Investment decisions are irreversible. It is difficult to find a market for such capital items once they have been acquired. The firm will incur heavy losses if such assets are scrapped.

Complexity

Investment decisions are among the firms most difficult decisions. They are an assessment of future events, which are difficult to predict. It is really a complex problem to correctly estimate the future cash flows of an investment. Economic, political, social and technological forces cause the uncertainty in cash flow estimation.

Signed Football Shirts For Soccer Fans As An Investment

Perhaps you may have noticed recently that the stock market has crashed. Sure it’s sad for the people who invested so heavily in it but perhaps behind it all there are a few expensive lessons to be learned. The first lesson is that the stock market is a great place to invest your money when its hot but should it turn cold, the stock market giveth and the stock market taketh away.

Truly Beautiful Investments to Hold in Your hand

Whats really crazy is the stories that are coming out on the news about people who are committing suicide because they have lost their millions. Is that really what investing is all about or can there be more to life than that? What about investments that you can hold in your hand and truly appreciate whether they go up or down in value.

Always Valuable to Soccer Fans

This is where the signed football shirt truly shines as an investment opportunity for todays soccer fan. A truly special football shirt that a favorite soccer star has actually held in his hand and put his name on. Of course these types of signed football shirts can be bought on a speculative basis but can they ever completely lose their value in the way that so many other investment commodities have recently?

Not Worth Dying Over

Of course not! And that is what makes them such an excellent investment. Do you think those guys would have killed themselves if they were loyal soccer fans that had invested their millions in signed soccer shirts? Hell no! Because for one thing they can never lose their value the way that stocks have and besides, regardless of which way they go in value, they will always be a genuine signed soccer shirt!

Well Worth the Sacrifice

OK. So now you are ready to sell your home and move into a cardboard box, so you can invest your entire net worth in signed soccer shirts and live under a bridge. Thats a wise choice, because for one thing it shows that as a true soccer fan you really do have your priorities in order. The wife and kids can go and move in with her mother. She’ll understand.

Using Prayer as an Investment Tool?!?

However before you begin making your purchases there are a few things that you will need to know. Of course the golden rule about not making emotional investments goes right out the window here, because after all, it is soccer your dealing with. However; with any type of sports memorabilia the idea if you plan on making money is to pick a rising star in his rookie year and pray like hell he doesn’t get injured.

Don’t Get Scammed

However; there is one other golden rule that you will definitely want to invest in signed soccer shirts by. That is that you should only buy a signed soccer shirt from a reputable website. Scouting around the Internet for screaming deals, more often not is only going to leave you holding a counterfeit. For investment purposes, the only option that you should consider is signed football shirts from credible online sources that come with a certificate of authenticity.

How to Start Saving for the Future With Long Term Investment Vehicles

In an uncertain economic climate, keeping your finances in good shape can be a difficult task. If you have long term goals, or simply think it’s a good idea to be prepared for unexpected financial burdens, a savings or investment plan makes a lot of sense.

Saving for the future means you’ll be in a position to help your children through higher education, or insure that you retire comfortably in your old age. Whether you’ve gained experience or are new to navigating the savings and investment market, a solid, long term financial strategy gives you both options and peace of mind.

What do I need to know?

You have a range of options when it comes to choosing an investment or savings product. The approach you select should reflect your needs and long term goals and it’s a good idea to familiarize yourself with the different accounts or ‘wrappers’ financial organisations offer:

ISAs – Individual Savings Accounts offer a high-rate of interest with the added incentive of tax exemption on the money you accumulate. Be aware that there is a limit on the amount you can contribute to an ISA per year. ISAs are available in both ‘cash’ and ‘stocks and shares’ categories.

Investment bonds – a lump sum is invested in a range of funds and assets with the intention of making the highest capital gain. While this option carries increased risk, significant tax incentives are available.

Pension and retirement plans – it’s never too early to start thinking about putting money away for your retirement and tax relief on the many pension products available make this type of saving an attractive option. Keep in mind, money put into a pension scheme will not be accessible until you reach a certain pre-determined age.

Offshore investment – although a legally complex area, moving money into an offshore account may bring significant returns. While your money may grow in an offshore account, you’ll be required to pay tax on any gains should you decide to move the money back home.

What are the risks?

Choosing to save or invest depends a lot on the extent to which you want to risk your money. If you have a clear idea of an amount of money you wish to accumulate over a certain period of time, an ISA or similar savings plan could be the better option. While the amount you stand to gain may not be as much as an investment strategy, your cash will be protected against the dangers of the stock market.

On the other hand, if you feel you have the time and money to risk in an investment, the stock market can deliver the returns you’re looking for. If you don’t have the experience to devise an investment strategy on your own, finding a financial advisor to help you through your decisions is a very good idea. Financial advisors will be able to select an appropriate investment plan for your personal needs and provide information and advice at every stage.