Category: Business

Seven Rules To Start A Successful Investment

Seven Rules To Start A Successful Investment. Whether you invest in equities, currencies, real estate, precious metals or others, having a successful investment is something you have been thinking about since the first day you started investing money. Which may increase your interest in a successful investment, what we hear every day from one’s failure to invest, or the sharp fall in some investment markets, making a successful investment a challenge worth fighting for. You have to learn above all that success in investing is the outcome of effort and determination, and a bit of luck! And who gets a successful investment will achieve the dream of wealth, which dreams of the following seven rules are the most important according to the opinions of Roberto Santiago’s Shopping Center experts, try to follow them as you can to achieve the highest returns.

1. Do not Trade Trendy Fashion:

This advice is provided by successful entrepreneur Warren Buffett, who points out an important principle in the way of any successful investment. Going to a door that has not been touched before (provided that it is logical and well-studied) is much better than tradition, and the return on investment is greater for the initiators than the imitators. In another way, you do not have to buy anything because it is desirable or we have tried it and succeeded, as most people do, especially in real estate and equity.

Roberto Santiago's Shopping Center

Roberto Santiago’s Shopping Center

The right choice for a successful investment must be based on careful study and monitoring of the market, not on the direction of major investors or major corporations. The situation is different for them, and the time factor also has its role. Today, attractive offers may be on the way down tomorrow.

2. Take advantage of opportunities:

As it is said, the calamities of folk when folk benefits, and this is the summary of this advice. To start any successful investment you should get the chance, by looking for good companies that are going through bad times. In bad times, stock prices fall considerably, and because the company is basically good, it will probably be rebound, and so the value of stocks will increase significantly. The order can be measured on any other type of investment, such as buying gold when gold prices fall, buying real estate times of crisis.

The best model in this context is the Apple story when it was at its worst and its net loss by the end of 1997 was $ 161 million (and certainly the stock prices were very low in that period), but in the same year, when its manager CEO Steve Jobs for the second time managed by his ambitious management to raise the company’s net profit by 2010 to 4.31 billion dollars !!

3. Be patient and considerate:

For a successful investment, you should not wait for returns as soon as you enter the labor market. It is all about time. You may be lucky. Your money will double in a short period of time, but this should not be the yardstick for you. All you have to do is watch the opportunities to seize them when they appear, without hurrying the results. Looking ahead and long-term planning are also very important for every investor. You should not venture as soon as opportunity passes, as it may be only the first opportunity, and there is better.

If we test the example of Apple again, investors who sold their shares in 1997 certainly feel great remorse, because they missed a giant opportunity just because they could not be patient and analyze the situation deeply. At the same time, there are those who sold their shares as soon as the company began to improve in the following years, while if he had enough consideration and waited until this day, he would be a high net worth.

4. Do not put all eggs in one basket:

This means that to ensure a successful investment, you should not put all your capital into one investment, no matter how tempting it seems to you. Diversification of investment is very important if you aspire to a successful investment. This will protect your investments in times of crisis by reducing reliance on one source of money. It can be likened to an employee who depends on his job only to make money. Once he is laid off or dismissed from work, he finds himself starting from scratch, he does not even have the cost of living.

One of the most significant examples of investment diversification is the recent financial crisis. It was noted that consumer product companies (which have a wide variety of product types and affiliates) have seen only marginal declines in their stocks, unlike real estate stocks that have fallen significantly .

5. Work in accordance with a solid investment plan:

Here we intend to work according to a well thought out plan, based on a full understanding of the market conditions, and taking into account careful follow-up of everything that happens and modify the plan according to these developments. Try to use money experts and specialists at the stage of preparing the plan, and take advantage of the experience of your predecessors in a successful investment earlier. You can write down their tips and they may save you when you need them. Do not get involved in large investments without preparing a well thought out plan if you really aspire to a successful investment.

6. No Loans:

It is one of the most important tips on our subject today. We often hear about the start of a successful investment and then begin to decline and fall until it fails completely just because the loans have weighed on its shoulders and paid off its profits. Do not invest in what you can not afford. If you plan to start a successful investment, start by pre-setting the money aside until you reach the capital you are looking for, or run your money in a small project to grow as much as you want.

7. What is disappointed by the consultant:

You should not be working on your own to reach a successful investment. Sometimes it takes experience and specialization in the areas of business and finance, something that you may not be able to do. Make yourself an adviser and bring you people who trust their opinions, analyzes, and personal experiences.

Tip for a successful investment:

Always separate the money you put into investment and those related to your personal life.

What Do You Warn Of When Choosing Stocks?

What Do You Warn Of When Choosing Stocks? What do you warn of when choosing stocks?
Investors who focus on dividends should pay attention to companies that do not have a long history of paying dividends. The Infinity Code investor must feel that the dividend payment will always be an integral part of the company’s culture.

It is also necessary to know how The Infinity Code Review company’s dividend policy has been affected by changes in its performance and general economic climate over the years. There is a strong possibility that companies that pay the same dividends or those that have distributed their shares continuously over a number of years, the future .

But imagine the consequences that could happen if The Infinity Code company devalued its shares or stopped distributing one of its shares after it had been doing so for several years. There is no doubt that the stock will fall sharply. In general, companies are keen to do what they can to keep their share level up or down as they realize what kind of impressions they will be given by reducing stock distributions to the market. Discontinuing the distribution of shares that have remained high for a long time generally means that there are enormous challenges experienced by the company, or that the company is experiencing financial difficulties.

After ascertaining that the company has consistently distributed dividends in the form of a reasonable amount of revenue, the main question to be answered by the researcher is: Does the company have sufficient cash resources to continue to pay dividends in the future? Do you have a strong financial position to do so? There is no doubt that there are financial instruments that can be used to help estimate this. Investors should note, however unlikely it may be, that companies that in the past have paid dividends and have a strong financial position to continue to do so in the future may decide not to continue to pay dividends for special reasons. The company alone in the end.

The Infinity Code

The Infinity Code

The secret to success in paying dividends is the availability of a strong cash flow. Profits are good, but cash drives dividends, so investors should try to sort out stocks of companies that have a steady or growing cash flow per share. A company that is able to develop its cash flow is in a better position to pay dividends from a company that does not generate cash regularly.

One of the criteria that helps determine whether earnings per share is safe or not is the distribution coverage ratio, which is calculated by dividing the cash flow per share over the last 12 months on the last or expected earnings per share over the next 12 months. If the rate of return exceeds 1.0 then the investor should feel confident that the earnings per share is safe. If the value of the return ratio falls below 1.0, it clearly means that there is a risk of a decline in the value of the share in the future. A company with a coverage ratio of less than 1.0 needs to borrow or sell its assets to pay dividends. Many companies in such a situation reduce the amount of shares distributions or refrain from paying. If the sorting engine can not access the cash flow figures, then a margin of safety can be achieved for the earnings per share when it is two thirds of the value of the profits. Some independent financial institutions such as S & P, Moody, Valuable Line, Classifications of Infinity Code Review earnings per share security scores.

In addition to looking for a company that has sufficient resources to pay its dividends, the investor must look for companies that can increase their dividends. Any company with a distribution ratio below the average market ratio of approximately 0.41 is likely to increase its dividend and thereby increase shareholder returns. If the company maintains the stability of this ratio as it achieves an increase in its profits, the dollar value of the dividends received by the investors will increase over time.

Simply put, companies with strong profits have the opportunity to make higher allocations than low-profit companies. Companies that pay dividends and have strong profits are also likely to be able to increase their capital over time. When coupled with income from equity distributions, it yields an impressive total return.

The Importance Of Financial Governance For Family Businesses

The Importance Of Financial Governance For Family Businesses, The existence of a comprehensive system of financial governance is a necessary tool for family businesses to manage its resources effectively. It can be seen as one of the elements of the linkage between family governance and corporate governance which includes procedures for each of the fortunes of companies and private wealth into account the multi-layered required by such a 100K Factory system structure, it would not be surprising how difficult it is to establish an effective financial governance in the family business. Both Gregor shows, top manager relationships in Pictet & C Family Office, regional administrator and vice president of Pictet Wealth Management, how can the financial governance of the family help wealth management and what are the considerations for family businesses in the Middle East.

Usually they represent enormous levels of wealth in the family businesses in difficulty managed to the satisfaction of all family members equally. That is why it is imperative to wealthy families equation financial objectives and a proper system.

Family Businesses

Family Businesses

Representing financial affairs and business affairs of two of the most important components of wealth in families. While wealth creation begins in most cases from the business assets, the wealth preservation is achieved in general through a financial asset management. However, both types of assets works in a different way, each with special features that distinguish it. As a result of this, it must be different for each system of governance.

It is necessary to include family governance system for the governance of family councils and / or boards of directors, this will work to address both financial governance and corporate governance. While dealing with corporate governance is often a priority, financial governance remains overlooked by many. In this regard, often she hears comments advisers corporate leaders that they are busy largely prevents them from following up on all of their investment and financial decisions. Often issued this comment of entrepreneurs are still heavily involved in the processes and procedures for the daily management of their companies. This shows that successful family businesses find themselves in front of the wealth management task but with time constraints and sometimes little attention devoted to this aspect and care.

The development of a successful financial governance system requires that there be a family governance system already exists and works effectively. It is important to develop a strategy detailed family defines the values ​​and objectives associated with the plan, the family company, where the necessary information which must be met before setting investment policy, which must be turned to the goals of family financial goals are available. Family goals based on the position of the family and its place in the cycle of wealth, in the sense that if they are in the process of wealth creation or preservation. One of the main advantages of wealthy families is the possibility of setting financial goals through several generations. In this way we can deal with the financial turmoil and periods of increasing instability in the market and afford better. Such a hallmark to determine the asset class options. Figure 1 illustrates how the family and corporate governance and financial governance are linked to each other in order to perform the functions of wealth preservation, management and development.

Financial governance architecture that enables development of guidance and formal guidelines will guide the investment committee. The formation of the Investment Committee to oversee the financial governance of the family is one of the important tools for the system of financial governance. And it provides moreover the opportunity to absorb the culture and family dynamics to allow time for further interaction among family members. More importantly, they must unite the family regarding financial expectations and thus should result in the most appropriate solution that is placed specifically for the family to work for a long time.

Have families in general more than asset manager or private banker, and is different from the role of the Investment Committee are among followers of the company’s way to follow the way of the private bank. The company’s way will depend on the principle of subsidiarity, which requires therefore a strong investment committee, while offering a way your bank more flexibility and customization with the more dominant of the family responsibility.

After setting investment policy and agreed upon, you can then proceed to implementation, the beginning of the request for tenders leading to the development of reporting tools. Once you start investments under the supervision of financial governance system has been developed carefully, becomes the primary activity of the investment committees follow different managers regarding the risks and Alacharadat investment, supervision and market assessments. Presumably of the financial system of governance precise mastery of financial portfolios for the family effectively and transparent management.

With the development of wealth cycle, increasing the importance of financial wealth and reliable. The development of appropriate financial governance system is a necessity for success in achieving financial objectives and ensure a smooth and happy transition to the next generation of the family. This system puts equip young people to do the family’s future roles and assume increased responsibilities in the world of financial asset management. This system provides in addition to the above, the opportunity to establish a strong relationship of trust over the long term with external advisers.

Private financial governance in the Middle East family businesses considerations

The family companies must recognize the importance of financial governance and its core functions. However, it must at the same time the institutional context of social and economic conditions in mind for family businesses that you specify financial goals. Thus, when talking about the establishment of such systems in the Middle East families, it may take a closer look at the implications and considerations for their own center-aligned.

The company’s wealth and private wealth linked with each other closely in the family business. And we often find that successful families are those that have managed to separate the assets of the company for the assets. And it will be demonstrating the extent to which a family company from doing this separation process at the level of professionalism within the company. Major family businesses in the Middle East began several years ago to shift to more sophisticated companies regarding the organization of its assets in addition to own assets, manage risk and diversify their activities. However, there are considerations can not be ignored when families put their own financial governance systems, these considerations imposed by institutional, social and economic context in which they operate family businesses on one hand, and imposed special features of the family on the other hand:

Family entities: increasing complexity of family structure in the Middle East due to the number of family members of different age groups in a single family. Often the number of family members up to the barrier percent or more with the arrival of the third generation (Union cousins). It is easy to imagine a number of different opinions and trends that must be considered in the financial objectives in the light of such a combination. The willingness to receive a large number of members of the next generation is important and must be taken into account when developing financial governance system.
Legal frameworks must be compatible and taking into account the provisions of law applicable financial governance systems in the Middle East. In cases of inheritance, the legal system of the State may impose a way of distribution of wealth within the family different from the fair way from the standpoint of the family. Should the financial governance system of governance in cooperation with the family to determine from the outset how the distribution of wealth in the event of the death of a family member.
Combining assets: know about the families in the Middle East to diversify its investments and special related to the company at the regional and global levels alike. Such financial decisions are accompanied by certain additional challenges: must a lot of families into account the rules and regulations relating to the purchase, for example, fixed assets abroad (such as real estate in different countries). The challenge is to different legal and financial legislation. Are often dealing with this so well in the case of the company’s investment, however, the families must not ignore the need to show the same care and attention when it comes to private wealth.
Responsibilities: The debt can not be ignored when talking about the company’s fortune. Private investment has been transformed into a commitment when families buy fixed assets accompanied by financial commitments (such as mortgages). Families should not think about how to diversify their assets only and organization, but it must also take into account the extent to which these assets represent an obstacle for her.
Political and economic crises: Of course, you must take into account factors that are beyond the family’s control, such as political instability and economic crises in developing financial governance system. For example, the recent crisis in the banking sector caused a great crisis of confidence, and intensified the suffering of the companies that were not prepared for such a sudden shift in the surrounding institutions.
Institutional environment: Depending on the stage of its inception in the original habitat have witnessed recent growth, the families facing the Middle Eastern problem of limited institutional support for funding. When conditions worsen corporate and bank financing becomes a real problem, the families must be willing to rely on their own financial funds to finance its activities and its companies. Again apparent strength of the link between wealth and private wealth companies, family businesses and thus the importance of organizing each other through a system of financial governance and clear.
Risk Management: it does not often differs from the family’s position on the risk in the case of private wealth management and wealth of the company. Over the past few years there has been a lot of frustrations in respect of proceeds Guy investment both by the company and the private side alike. The existence of the position of the governor coupled with careful planning for each of the private wealth and the wealth of the company can be beneficial to the prosperity of the company and more importantly, the stability of the family.
Considering many of the family in the Middle East in these problems, companies and carefully examine the opportunities and consequences. There is also an awareness of the dimensions of the situation and feeling the urgency to confront it. Some companies have taken a complex planning procedures and through the development of a financial governance systems will be able to deal with the challenges that result from the medium in which they operate or from within their systems and structures. These companies also put in place policies and councils to invest. There are other family-owned businesses grow to become significantly make them establish a separate family offices to manage their wealth and distribution. There are also companies decide to work with a specific number of banks and their advisers. The choice of the right advisors on the family issue that must invest a lot of time to study because of the importance of their roles in the success of financial goals. Unfortunately, there is still a lot of family businesses that did not deal with the issue of financial governance at all.

In the current financial turmoil, many families prefer to get help to explore new financial opportunities. Financial assets may be a high degree of complexity, but sometimes looks more complicated than it is reality. However, there is a golden rule states simplify things as much as possible and go back down to basics. The advantages of financial governance and multi many, but the most important thing distinguishes it provides peace of mind for family businesses in the first place. And most importantly, as a result of the balance between corporate considerations and considerations it will always seem logical for the whole family. It must be considered to financial governance as one of the important components of the sustainability of the family business and continuity across the generations to come.