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Posted: Tue Jul 18, 2006 10:43 pm Subject: Investment topic...

I've been visitng these forums on and off for some time now and I think that a thread relating to investments (real estate, equities, derivatives, etc.) would be very helpful for people trying to eliminate their debts and gain financial security. I'm sure there are other people here interested and experienced in these financial topics and I think that maybe we can trade-off giving lectures/discussions or answering questions for people trying to (re)gain financial stability. I have a little bit more experience in equities than in other financial instruments, but I'd be more than happy to answer any and all questions you may have relating to any one of these topics. I've compiled a reading list of sorts for a few of these subject areas and I'll post it as soon as I find it. Is anybody interested in something like this or not?

John

Posted: Wed Jul 19, 2006 10:42 am Subject: Forum

Hi John: I love this idea...I need all of the help
I can get in this area. Smile

Posted: Wed Jul 19, 2006 11:59 am Subject:

I think that's a great idea! Most of us here have good paying jobs and are digging our way out of some debt issues, but then what?
It would be a great idea to have an investment counselor help us with what comes next!!
What do ya think Denny?

Posted: Wed Jul 19, 2006 6:33 pm Subject:

Cool!!! This discussion can be quite interesting and very helpful. We have not had this type of topic earlier. We will like to get a small gist on your experience for the ball to get rolling.

Posted: Thu Jul 20, 2006 1:47 am Subject:

I'm glad everybody thinks it's a worthwhile idea. I really do believe that everybody should be somewhat versed in the investment opportunities available to them. It seems that nowadays people are split into one of the three groups: the mutual funders, private investors, and the hedge funders. By no means do I think that there is no room for the first or third categories--I would be out of job in that case--but small portfolios can still reap large rewards. For larger portfolios, more professional guidance may be better.

For those that are simply starting off and do not know the difference between a stock tick and stock symbol, this is no better time to start. Remember, success is inevitably in the details and commonsense. You don't have to buy Ivax/Teva (a drug manufacturing corporation) to have high returns. I've seen countless people profit from investments in products and services familiar and useful in their own lives. Peter Lynch is the master of this theory. If you are looking to find the gems in the rough, there are certain formulas, fundamentals, and paradigms that you will have to follow. As a point of reference, the best investment funds in the world rarely yield more than 20% return consistently. Of course, it's difficult to predict long-term changes, but we have seen inviduals make excellent buys/sells at opportune time. If you catch on early enough, returns of 75%-100% are very doable. Much higher grains can be achieved on the derivatives market, but a higher risk is involved as well. We primarily use it for hedging bets, but we can discuss this later. For now, here's my quick primer to those new to the stock market.

First of all, it's important to remember that the stock market is primarily derived from underlying company values that only dictate the speculation of investors. That is, a company can soar in value, but most investors contribution is minute equity in the company. That being said, your goal--the number one goal in fact--is to outsmart or to better anticipate circumstances at the same cross-section as another person in the same market. This is the most basic principle and you'd be surprised how often people forget it and try to outmaneuver the market, rather than just another person e.g. the Rise and Fall of LTCM is a book that illustrates this example well. Thus, the question is more of wits and research than anything else.

In my experience, there have been several investment strategies people have used (some novel) and others borrowed from already proven investors. There are a few books, by the likes of Peter Lynch, Warren Buffett, George Soros, et al. that comprise the investment pantheon. No better place to start than in those pages. For now, it's getting late and I'm getting tired, so more is yet to come. I hope we can get some interesting and fruitful discussion on this topic. Good night to all.

John

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