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Robert Rodriguez Weathers The Stock Market

Sep 12

Posted by admin in Stocks Mutual Funds

Robert Rodriguez likes to buy stocks at their lows. When there are not enough stocks hitting new lows, he closes his fund and piles up cash. This is what he has been doing lately. His moves deserve attention for good reasons, his $1.7 billion FPA Capital Fund has averaged an annual total return of more than 17% over the last 20 years, net of sales charge, handily beating all the benchmarks by wide margins.

As Robert Rodriguez finds slim pickings in the stock market, his goal has changed to capital preservation. The cash position in his fund has been in steady increase. On March 31, 2005 , it is at 34%. As a reference, between 1984 and 1997, his cash level was rarely above 5% and most of the time it was less than 2%. Now he is sitting on this big trunk of cash, awaiting opportunities. \”You never know the value of liquidity until you need it and don\’t have it.\” He said, ?This is one of those times when it takes a great deal of patience, discipline, and conviction to maintain such a contrarian position, because of the potential business and investment risk that it entails.?

Robert Rodriguez? contrarian position in investment goes beyond adjusting the level of cash. He also reduces his fund?s weighting in the sectors or industries that he thinks are overpriced. He has done this before. The years of 1979 ?1981 was the time of the second oil crisis, oil and gas prices were soaring. Many \”experts\” were forecasting oil prices of $100 per barrel within ten years. Energy stocks were being valued as growth stocks and represented nearly 31% of the S

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What Buffet Looks For In A Company

Aug 31

Posted by admin in Investing

What’s the number-one attribute Warren Buffet, arguably one of the most successful investors in the world, looks for in a company? “Sustainable competitive advantage,” he told an interviewer. If one of the most successful businessmen of today puts this at the top of his list, you should too.

Not only competitive advantage, as a term, widely overused, it is also widely misunderstood. You are not alone if you have ever wondered what a competitive advantage really is and what you do with it. So what is it exactly? And if Buffet examined your company, would he find what he’s looking for? Let’s find out.

The 30-second competitive advantage challenge

Here’s the 30-second challenge to determine if you know your competitive advantage. Ready? Go. I meet you at one of the numerous local networking events and you introduce yourself “Hi, I’m Bob Jones with ABC Company.” “Hi Bob. Nice to meet you. Tell me a little about your company. What is your company best at?”

” 29, 30. Time’s up! Could you answer my question in less than 30 seconds, succinctly with clarity ” If yes, skip this column. If not, don’t worry, you are in good company. The majority of businesses are also trying to figure out what they are best at. Honestly this question is hard to answer. You have to narrow your focus more than you are comfortable with. By the end of this column, you will be able to share your competitive advantage with confidence.

What competitive advantage is and isn’t

Often starting with what something isn’t is easiest. Your competitive advantage is not a list of your strengths. Not to down play strengths as these are important too. But if your competitive advantage(s) list is only comprised of strengths it is not a “competitive” advantage. Key word – competitive. If you don’t have a competitive advantage comprised of more than strengths, you don’t compete. You exist.

The management team from a mid-sized financial services group reported that its competitive advantages were:

Good reputation in the community
Skilled staff
Outstanding team and well-respected leader
Knowledgeable
Strong client list and loyalty
Flexible and responsive

Blah, blah, blah. Right? You’ve heard all this before and so have I. Couldn’t you say this about most any professional service firm? This is what a competitive advantage is not. This is a list of strengths.

A competitive advantage is something you do that is unique. The key here is to compete you have to have a unique advantage. Looking at the list from the financial services firm above, you can see that this is not a list of unique stuff. Basically anyone in business today needs to achieve that level of competency just to be in the game.

Think of your competitive advantage as your organization’s DNA – a collection of genes or assets that makes you unique. When you are true to your DNA, you are healthy, fit, and successful. When you compromise your DNA, you feel uncomfortable, slow and are exerting more effort than you should.

Your competitive advantage is what you, your company or your department does better than anyone else. The sustainable part refers to your ability to continue to do those things over a long period of time. And yes, you can have more than one advantage and you can develop advantages as well. You don’t have to possess them all now.

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Credit Card Debts And How To Cope With Them

Jun 17

Posted by admin in Credit, Finance

Credit cards may be convenient since it gives you the luxury to spend more than what you can actually afford, but they can also land you in serious financial problems if not used properly. The use of credit cards in America is increasing by the day, and unfortunately, many are struggling with debt caused due to over spending. As a responsible credit card user you must try to lead a financially sound life, and you can begin by getting rid of your credit card debts.

Never overextend the use of your credit card, as that will land you in a debt with high interest. Getting into credit card debt is very easy, but it may be very difficult to come out of it. Therefore, it is better to be cautious from the beginning, rather than finding yourself in a financial quandary.

Stop overspending

It is never too late to pull yourself out of the debt you are buried in it. The most important step is to curb your temptation to overspend. Try to limit your expenses as far as possible by keeping one or two credit cards at the most. More cards will mean more balance to pay off. This will quickly put you in a cycle of debt.

Do not use your credit card to buy a lifestyle that is unaffordable for you; instead, use cash to make your purchases. If you want to buy something that you cannot afford, then you need to save money until you collect the required amount.

In case of an emergency, you will have to use your credit card, of course, but make a strategy for payment of the balance before using the credit card. To do this, you need to make a budget and see that you use your credit card according to the budget. If you find your expenditure going out of budget, then it is advisable to stop using the credit card.

Cover your balance

Making minimum payments for your credit card bills each month may seem to be convenient, but the truth is that you are pulling yourself into a never-ending debt trap. When you use your credit card try and make full payment for the balance that is created, keeping a check on its use until you actually pay off the balance. So pay the whole amount and that too on time in order to avoid late fees. If you maintain a good credit record you may even get certain considerations from your card issuer.

Avoid special services: As a credit card holder you may get tempted to get hold of various special services like travel clubs and life insurance offered by your credit card company, but be advised not to get into this trap, because even though they may seem alluring they are just added expense for you and add to your debt-burden.

Never use your credit card to pay your loan or advance, because if you are unable to pay off the balance, it will become a high interest loan for you. So you should use your ATM card or go to the bank.

In order to make the most of your credit card you must learn to use it wisely. Remember that staying out of debt is not difficult. All you need to do is to keep a check on how and when you use your credit card.

Writen By : Joseph Kenny

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Debt Management Programs: Tips From The Inside

May 24

Posted by admin in Debt Relief

Before I start, I would like to point out that not all debt management advisers are unscrupulous.

Indeed, there are hundreds of well informed, good hearted individuals that genuinely take pride in their occupation, and take very seriously their position of bringing help to people in desperate situations.

That said, there are some advisers out there whose sole reason for their involvement in the debt management industry is commission driven income, and these are the ones to watch out for.

I have listened to literally thousands of people\’s stories about these issues, and some of the more serious ones are shocking, but rather than going into specific cases, I have decided to feature the most commonly occurring ones. You may consider some of these tips simple, but believe me they\’re well worth remembering.

The things to look out for:

  1. Over confidence. Any adviser who promises to deliver guarantees of frozen interest on behalf of creditors is, in all likeliness exaggerating their authority. This is a classic comforter and is designed to re-enforce your trust in them.
  2. Fast Judgment. When somebody passes on advice too quickly, i.e. before they have all the facts, it is likely they had made their mind up for other reasons than your \’best advice\’.
  3. Financial Inaccuracies. Double check their figures, a mistake on their part will have little consequence to them, but could have a significant impact on your budget.
  4. Titles. Don\’t be swayed by job titles, I have known of instances where \’senior\’ adviser meant two days in the job! True!
  5. Payment Pressure. Most commission paid advisers will only receive their share when you\’ve paid your monthly repayment, so they\’ll be wanting you to pay when it suits them, not you.
  6. Creditor Consequences. Each creditor can react differently, depending on the size of the debt, so ask who are likely to be your problem creditors and what actions you can expect from them.
  7. Other Options. Ask what other option are available to you and ask as many questions as possible about each one to test the advisers depth of knowledge. If the adviser sounds unsure, he probably is unsure. For the adviser to give informed advice they should not struggle with giving information about the other options available to you.
  8. Make Notes. Jot down the key points they give you as to why other options are not suitable.
  9. Second opinion. It usually pays to get a second opinion on any important decision. This is an important decision, so do your homework.
  10. Under Accounting. Look out for pressure to reduce your essential living expenses. Your need for those expenses will not diminish, and will undermine your ability to afford the repayments if they are reduced.
  11. Check the Fees. Most private debt management companies in the UK retain the 1st monthly payment into the program for fees. There are companies that do an excellent job for free.
  12. Affordability. Commission paid advisers earn a percentage of your repayment into the program, so it is in their interests to keep your payment high. You must keep it at a realistic level for you.
  13. Timetable. Ask how long it will take for the debt to be repaid through the program, and then work it out yourself. Don\’t be duped into being told the debt will be repaid quicker than the math indicate. (To find out how many years you will be on the program you must divide your total debt by your repayment [after the monthly fees have been deducted] and then divide the new figure by 12.)
  14. Check your paperwork. If you are happy to continue make sure you read the agreement, warts and all, check the numbers add up and that everything is accounted for in your budget.

Things you should prepare before you ring any company for advice:

  1. Gather together as much information relating to your debts as possible. This can be a very time consuming exercise if things aren\’t prepared, so get them ready and you can concentrate on the discussion.
  2. Have a copy of your wage slip with you. And also any other income related paperwork.
  3. Spend some time studying your budget. Write out all the things you spend your money on each month, but don\’t include your debt repayments. This is the list that may need to be trimmed, so highlight your essential living costs and don\’t trim these.
  4. Have plenty of time available to discuss everything in detail. This is an important issue that needs to be given the appropriate level of attention.

Thousands of people successfully use debt management programs to help them cope with their financial obligations and pressures. Personal circumstances can change for any of a million reasons, and I imagine debt management programs will continue to be needed, so long as people use credit.

However, if this article can keep just one person away from the reaches of these so called \’advisers\’ – then it will be worth the effort!

Iain Wrenshall is a senior debt adviser that specializes in IVAs or Individual Voluntary Arrangements. For further information regarding regulations on Debt Management companies click here.

For further information on IVAs click here.

If you live in the UK, have a debt problem, and wish to discuss your personal circumstances in the strictest confidence call free on 0800 088 7503 or alternatively go to Debt Help UK for further free advice.

Writen By : Iain Wrenshall

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IVA Companies: What You Need To Know

May 22

Posted by admin in Debt Relief

IVAs are administered by Insolvency Practitioners (I.P.s), and there are many based all over the U.K. As in all walks of life though, some are better than others, so finding a reputable I.P. when you need one is not always straight forward.

A common way of finding an I.P. is to use an intermediary IVA company. The intermediary IVA company will assess your case and, if an IVA proves to be a viable option, they would normally suggest a reputable I.P. company to help you. This in itself can lead to uncertainty because, as with the Insolvency Practitioners, some intermediary IVA companies are better than others.

The choice as to which IVA company to use is crucial.

So, how does a person decide which IVA company is the most suitable from the many available to choose from?

A good starting point is to use an IVA company that has been recommended to you by someone you know. However, if this is not possible, using the internet is a useful way to find IVA companies which offer this service, but be cautious.

Use the tips below to establish which IVA company you are most comfortable with:

1. Be comfortable with the adviser that you speak to.

You ought to be able to discuss any aspect of your financial, and sometimes personal, circumstances with them. Your adviser should have a good knowledge of the IVA process, and be able to use their experience to guide you forward.

2. Do not use an IVA company that insists on charging a fee for the preparation of the paperwork.

There are some excellent IVA companies that do this work for free.

3. Be sure that the IVA company you are using has carried out a thorough analysis of your circumstances.

To be able to advise you on which action you should take it is essential that they really understand your true situation now.

4. Be sure that they talk through all your alternatives.

This could include Bankruptcy, other repayment plans and possibly even a consolidation loan or a re-mortgage.

5. Be wary of an IVA company that suggest that an IVA is a foregone conclusion.

In truth an IVA\’s success is based on the decision of the creditors. A good Insolvency Practitioner, however, will always err on the side of caution and use his experience to assess each new case before commencing his work. This not only saves unnecessary time, effort and costs, but also goes some way to reassuring clients that, all things considered, a successful IVA is a likely outcome.

6. Do not be persuaded by IVA companies offering unrealistically low payment IVAs.

It is easy to be given a false sense of security, but the truth is that IVA repayments are based on what you can reasonably afford, not what some clever sales person is trying to make you think is acceptable to creditors. Large write off figures are very persuasive, but are by no means guaranteed. Creditors will ask for modifications to your payments at your creditors meeting if they feel that you could reasonably afford to payback more money, and the IVA will not proceed if you can\’t agree to these modifications. So be sure that you feel the payments you are offering are fair and reasonable.

7. Look for a money back guarantee.

When you have decided that an IVA is your best option, be sure that, if the Insolvency Practitioner takes payments pre creditors meeting, these funds are refundable should your application is unsuccessful.

8. Let your instincts guide your decision.

Don\’t feel that any one IVA company is the only one able to help you. If you feel that an IVA company is offering something to good to be true, ask them testing questions and gauge their advisers response. Don\’t forget, if you are in any doubt, get a second opinion.

Finding the most suitable IVA company to help you is so important, as, don\’t forget, this company will be presenting your case to your creditors, so you must be sure you have found the right one.

Remember, communication is the key to a healthy relationship, so once you have decided, keep all channels open!

Iain Wrenshall is a senior debt adviser for myIVA-Adviser.com If you would like to call and discuss your personal circumstances regarding IVAs, or any other debt related problems, you are welcome to call 0800 088 7503. You will be given free, clear, concise and ethical debt advice. We specialise in helping people find the best solution available to them. All your details will remain confidential, and our small, specialist team will be at your side to guide you out of troubled waters.

Remember, now is not the time to be an ostrich, because help is at hand.

Writen By : Iain Wrenshall

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How To Repair Bad Credit With Self Debt Management

Mar 1

Posted by admin in Credit, Debt Relief

Time, patience and management are extremely important to repair your bad credit. You may not lack the money to settle your debts, but instead simply forget to pay on time. This is lack of management. You have to change your habits, and start paying your bills on time. This will reflect positively on your credit report.

Self Help is the Best Help

Before opting for a credit repair program or debt consolidation loans, know how to get out of debt on your own, with a few simple steps.

- Pay all your bills on time. If there are outstanding debts, pay them off immediately. This will cause your credit ratings to rise.

- Stop using your credit cards. Close all the accounts so that you don?t get into further debt.

- If you can?t afford to pay off your debts, contact a non-profit debt counselor and work out a debt consolidation plan. This way, your debts will be consolidated and the counselor will contact your debtors on your behalf to cut costs wherever possible.

- Live frugally and don?t spend unnecessarily till you have cleared off all your debts. Continue paying your rent, utility and other bills on time to maintain a good credit record.

- Filing for bankruptcy is an option, but it will show on your records for the next 7-10 years.

- Apply for a secured credit loan, which will show up as a credit card on your report, and can help you build your credit history.

- Most importantly, set a budget and stick to it. You cannot afford to be extravagant.

Credit Repair Programs

If you?re not confident of exactly how to get out of debt on your own, then may be you should seek help elsewhere. You could seek an organization, which has adequate experience in handling such cases, and let them tell you how to repair bad credit. There are several of these organizations where experienced paralegals offer the best credit help services. By letting this credit help organizations deal with your finances, you are probably doing yourself a big favor. Don?t file for bankruptcy just yet. Wait and see if you can be helped in any other way.

Applying for a debt consolidation loan may not be the perfect way of solving your problems, but often it is the only way left when you have no money. Paying off all your loans as one consolidated debt could be a smarter option than being declared bankrupt just yet.

Whether you do it yourself, or seek help, it is important that you know how to repair bad credit; otherwise, soon you might be in more trouble than you thought was possible.

Visit our site to find reputable companies that offer debt consolidation solutions. Check out how you can make a plan for debt management to reduce your debt. You can also search for reputable debt reduction agencies easily from here.

Writen By : Al Falaq Arsendatama

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Why You Should Always Buy The Best

Feb 24

Posted by admin in Investing

One of the single, biggest mistakes people make in their quest for wealth is buying things because they\’re cheap rather than buying things because they\’re the best.

Surrounding yourself with cheap things is not in any way conducive to developing and maintaining the mental attitude that\’s absolutely necessary for you to become wealthy.

In an article titled \”The Constructive Attitude\”, the fifth article in his \”Lessons in Constructive Science\” series, Wallace D. Wattles, best known for his classic masterpiece \”The Science of Getting Rich\”, said this on the subject:

\”… if you wear cheap clothes, eat cheap foods and surround yourself with cheap things to \”save money\” you will put yourself in the mental attitude of cheapness and inferiority. You will think of yourself in connection with cheap and inferior things, and so will see yourself as a cheap and inferior person. The cheap and inferior within you will be brought to the surface, and you will never do your best. You will be incapable of exerting your whole power, and by the law of reaction, cheap and inferior things will move toward you.\”

On the other hand, in the same article, Wallace D. Wattles said this:

\”If you wear the best, eat the best and have the best in your home, it puts you in the right mental attitude. You see yourself as one who has the best, is of the best, as IS the best; and the best there is in you will come to the surface. You will take the mental attitude of faith, confidence and power, and your success will be assured. You will take hold of your work with conscious power, and your work will be well done. You will BE the best, and by the law of action and reaction, the best will move toward you.\”

Now…

Before you run out the door and go on a spending spree…

A word of caution is in order here…

The \”best\” does *not* necessarily mean the most \”showy\”, nor does it necessarily mean the most expensive.

It\’s never best to buy anything purely for show or solely because it\’s expensive. Only cheap and inferior minds care those things. The best minds care about usefulness and comfort.

That which has the most use and comfort for you is the best for you.

And…

The use and comfort you get from something may depend on a number of factors.

For example…

A person whose strongest desire is for the beautiful will buy those things that are most pleasing to the eye, regardless of comfort.

On the other hand…

Someone whose strongest desire is for physical comfort will buy the most comfortable clothes and the most comfortable furniture, regardless of how they look.

The important thing to understand here is…

As long as each gets the \”best\”, both will be right.

With that in mind…

The bottom line is…

If you want to be wealthy…

*Really* wealthy…

Starting today…

Stop buying that which is cheap and start buying that which is the best!

Copyright (c) 2006 Tony Mase

Writen By : Tony Mase

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