4 things to look for in an investment

The most important qualities every good investment possesses

New investors are often interested in purchasing a company's stock but are not sure where to begin. These four characteristics should serve as helpful guidelines in your search for a good investment.

1. What is the price of the entire company?

When doing research, it is important that you look at more than just the current share price - you need to look at the price of the entire company. The "cost" of acquiring the entire corporation is called market capitalization (or market cap for short) and is frequently referred to by financial professionals. In short, the market cap is the price of all outstanding shares of common stock multiplied by the quoted price per share at any given moment in time. A business with one million shares outstanding and a stock price of $50 per share would have a market cap of $50 million.

This market capitalization test can help keep you from overpaying for a stock. Consider the case of eBay and General Motors during the heyday of the Internet era. At one point during the boom, eBay had the same market cap as the entire General Motors Corporation. To put that into perspective, in fiscal 2000, General Motors made $3.96 billion dollars in profit, while eBay made only $48.3 million (not including stock option expense!). Yet were you to buy either one, you would have had to pay the same amount. It is almost unbelievable that any sane investor would pay the same price for both companies but the general public was seduced by visions of quick profits and easy cash.

Another useful tool to help gauge the relative cost of a stock is the price to earnings ratio (or p/e ratio for short). It provides a valuable standard of comparison for alternative investment opportunities.

2. Is the company buying back shares?

One of the most important keys to investing is that overall corporate growth is not as important as per-share growth. A company could have the same profit, sales, and revenue for five consecutive years, but create large returns for investors by reducing the total number of outstanding shares.

To put it into simpler terms, think of your investment like a large pizza. Each slice represents one share of stock. Would you rather have part of a pizza that was cut into ten slices or one that was cut into eight slices? The pizza that was only cut into eight parts will have bigger slices with more cheese and toppings.
The same principle is true in business. A shareholder should desire a management that has an active policy of reducing the number of outstanding shares if alternative uses of capital are not as attractive, thus making each investor's stake in the company bigger. When the corporate "pie" is cut into fewer pieces, each share represents a greater percentage ownership in the profits and assets of the business. Tragically, many managements focus on domain building rather than increasing the wealth of shareholders.

3. What are your reasons for investing in the company?

Before you purchase stock in a company, you need to ask yourself why you are interested in investing in that particular opportunity. It is dangerous to fall in love with a corporation and buy it solely because you feel fondly for its products or people - after all, the best company in the world is a lousy investment if you pay too much for it.
Make sure the fundamentals of the company (current price, profits, good management, etc.) are the only reason you are investing. Anything else is based on your emotions; this leads to speculation rather than intelligent investing. You have to remove your feelings from the equation and select your investments based on the cold, hard data. This requires patience and the willingness to walk away from a potential stock position if it does not appear to be fairly or undervalued.

4. Are you willing to own the stock for the next ten years?
If you aren't willing to buy shares in a company and forget about them for the next ten years, you really have no business owning those shares at all. The simple but painful truth of this is evident on Wall Street every day. Professional money managers attempt to beat the Dow Jones Industrial Average, which is a collection of 30 largely unmanaged stocks. Year after year, they fail to do this. It seems impossible that a portfolio managed by the best minds in finance can't beat an unmanaged portfolio of long-term stocks held indefinitely.

The guaranteed way to success has historically been to select a great company, pay as little as possible for the initial stake, begin a dollar cost averaging program, reinvest the dividends and leave the position alone for several decades.

Robert Kiyosaki Interview

Below is a interview of Robert Kiyosaki on network maketing.
Enjoy!



This is another interview of him. This is absolutely superb:

Click here and then there will be a download button

Another interview. This interview is known as "The Perfect Business".

Click here to download

Build Something of Value Every Day

One day, when I was about 12, I went down to my carpenter grandfather’s basement workshop.
“You should start earning your own money,” he said. “If you clean up this workshop, I will pay you what it’s worth.”

So I spent the next three hours making that place shine. I swept up all the wood shavings. I wiped down every piece of equipment and made them all gleam. I stacked all the wood neatly.
Then I found my grandfather. We went back to the shop. He looked around for what seemed a very long time, and then he nodded slowly and said, “Fantastic!”

You can imagine how proud I felt. Still nodding his approval, he reached into his pocket and handed me my wages. A quarter. Twenty-five cents!A quarter! I couldn’t believe it. Even in 1960, a quarter for three hours of work was nothing for an American kid.

He said, “I want you to learn something about the world. In the real world, cleaning up is useful, but it’s not worth much. Anyone can do it. It’s worth maybe a quarter. Now, if you had built something useful with these tools, a bookcase maybe, something that was functional, that would have been worth a bit more.

“But if you had envisioned something new, something that no one had ever thought of before, if you had built that, pouring your heart and your soul into it? Well, that would have been worth a lot of money. Remember that.”

I have. To this day, I carry that quarter. It reminds me of the importance of envisioning and building something excellent, something that will last long after I have gone.

That kind of vision and love of craft is not something you can get from most businesses. You certainly don’t get it from a business plan or a five-year projection. You get it from your heart. It’s got to be something you feel in your heart. That’s where it all begins

by Steven FlorioVice Chairman, Condé Nast Publications

Cash Flow, Wealth Secrets And The Quickest No Cost Way To Build!

By the time you finish reading this article you will know the easiest way to build wealth and cash flow without cost that I know. The steps involved are simple and easy to implement. I will show you how to avoid risks and take advantage of opportunity. You will be amazed at how easy it is when you know how.

There should be no surprise when I say the number one way that I know of to build wealth, is being able to give advice to a business person who is a motivated listener. Small business failures are rampant so your plan should involve this niche.

The motivated listener will be keen to get assistance in their business. They may have everything they own wrapped up in their business. They will be very open to your suggestions.

To get started your plan should not require capital. The last thing that you want to do is to use your cash putting a strain on your finances. Avoid strategies that include you parting with your hard earned cash.

The second way to build your wealth is to get involved with start up businesses. Small business start-ups are even more prevalent. Statistics show 85% of small businesses fail within the first 5 years.

There is a lot of money to be made in this market. The preferred way to be paid is in equity of the business. You can be paid anything from 10-15% of the business. Shares in a business in exchange for marketing secrets is a smart way to go when building wealth.
The best part of this strategy is that it can be duplicated. You can become an equity owner in many businesses and increase cash flow. It won’t take long before you have accumulated wealth beyond your wildest dreams.

However, most start - up proprietors are passionate about their businesses. Because they have put their blood, sweat and tears into building it up, they find it very difficult to let any of it go.

If gaining equity is not possible, you can receive a consultants fee for your services.
How do you do it? It’s relatively easy. Become an expert in helping business owners build their wealth and increase cash flow.

There are four stages to building a business and each stage has 4-5 elements. That’s means you have at least 20 different areas in which you can become an expert. You only need to be an expert in one. Learn it well and with confidence.

The way you get this off the ground is to tell others about yourself. Once you believe that you have the skills and secrets in a particular area simply tell as many people as you can. If you wish, you can place a small advert in the local newspaper to promote yourself.
When you contact a business owner, provide them with a presentation. Then put a proposal to them.

There are a number of risks that you should consider. This is not a short-term exercise. Plan long term. This strategy is not for the faint hearted or the lazy individual that relies on instant gratification.

To build wealth you are best suited to enter a field that you enjoy or have some experience in. Build slowly. Take the time to do a mini apprenticeship to ensure your expert status.

Learn a little about contract negotiation and have a solicitor draft up a simple one page template that can be adjusted for any agreements that you reach with a business owner. Alternatively if you are confident enough, the Internet has many examples of agreements that you can consider for your situation.

Choose a business with potential. This is important because if you are fortunate enough to do business with a goer, you may make a lot of money. A viable business is one that you believe has the potential to survive. Learn how to spot the difference between a goer and a loser.

Start part time. Don’t fret and take your time. If you want a short-term money making venture, you will have to change your strategy and choose another plan. It will have to be a plan that has a higher risk factor and one that you have to put money into. Then you will have sleepless nights worrying if it will make a dollar or not.

In conclusion, think about the rewards that can be made from eventually owning your own business. The world’s richest men are either owners of their own business or run one as if it were their own.

Recommendation: Read the Book Rich Dad Poor Dad to know more about cash flow. Just click on the banners on top of the website and visit them.

By Dan Cavalli

How to start a Business

For starters and new people who just got into business:

I wanted to share this info with people who never read it before. ENJOY..... TOP 8 ways to make your business a success

1. Write down your “WHY”. Why are you really in this business that you are in? What made you start your business? Why are you doing this? Is it because that you want to be your own boss? Is it because you wanted more freedom and time to spend with your family? More money? Is it because you wanted to control your own destiny? What ever your WHY is, you need to know it so that it keeps you going when things are not going well for you.

2. Write down your goals. Athletes, successful business-people, lawyers, doctors, and great achievers in all fields use goal setting. Statistics show people who write down their goals have over an 80% higher success rate of achieving them. Short-term goals are usually simpler and easier than long-term goals. Why? Well, writing them can help you have more frequent victories, and building momentum with each one you complete. If you do that, you can have more excitement and more motivation as you reach those goals on time. When you do reach you short-term goals, don't forget to reward yourself and celebrate.

3. Expand your knowledge. Expand your knowledge by taking courses, reading books, e-books, and attending learning events. Tele-classes are enjoyable, convenient, and fun for learning and discussing ideas with a group that have the same interest. Associating with people in your field instead of people who will tell you that you can’t make it, will help you a lot in your drive to your goal.

4. Visualize what you want. People who visualize things have a guiding vision in their head, heart, and soul. Visualization is the ability to create clear, detailed and accurate images in your mind, of events that you want to create as physical reality.

5. Replace negative self-talk. Know that you are the creator of your thoughts and beliefs. Replace negative self-talk and change it to positive self-talk. You need to talk to yourself that you can succeed. Tell yourself that you are a winner and that you will make your business a success. People will try to brain wash you that your business may not work. You need to not listen to them and tell yourself everyday that you will succeed. Family and friends do that the best.

6. Make sure that you are persistent and consistent. The lack of persistence and consistency is one of the major causes of failure. Many people are good "starters" but very poor "finishers" of everything they start. They tend to give up at the first sign of defeat. When you start a business of any kind, you need to stay in the game no matter what. So how do you stay in the game when things are down? First, you need a definite purpose, which should be backed by a burning desire. You need to have a plan in place that is backed up by action. You also need to know your “WHY” that will keep you in the game, as explained in step 1.

7. Organize your planning If you have a plan on how to make your business work, and your plan does not work well, then you need to try something else. I am not saying that you should try a different business, but a different plan. If that plan does not work, then you need to try something else. If this plan fails to work, then try another and so on, until you find a plan or an action that does work and brings you great results. The most successful people in all fields know that.

8.Take action. Very important. When you take action, things are getting done. When you just think about an idea for a business and you don’t take any action then nothing gets done. Ever. Visualizing, persistence, goals, and positive self talk, none of that is important unless you start to take action toward what you are striving for.

"The Insider Secrets to Marketing Your Business on the Internet" course

"Learn how to make a life-changing income of $100,000 to $250,000 with your Internet business... even if you're a computer dummy!" Review: "The Insider Secrets to Marketing Your Business on the Internet" by Corey Rudl I've just finished reading the brand-new 2005 version of Corey Rudl's top-selling Internet marketing system, "The Insider Secrets To Marketing Your Business On The Internet," and frankly, I'm overwhelmed by the huge amount of critical wealth-building information he's managed to pack into these two hefty binders and 3 CDs! But I guess I shouldn't be surprised; after all, when the box containing these materials showed up at my door, it weighed in at over 10 pounds! That's 10 pounds of the most comprehensive marketing strategies, test results, case studies, tools, and ideas for generating a life-changing income online (from $1,000s to over $1 million) you're ever likely to read! I'm talking about information like... Step-by-step advice for starting your own Internet business in as little as 48 hours! How to build a top-selling web site... for less than $100! Where to find hot products to sell (in 20 minutes or LESS)! 100s of FREE and cheap online tools, resources, and software How to get 1,000s of qualified NEW visitors to your web site... for FREE! How to get #1 rankings in the search engines and get tons of FREE traffic from the "Big Guys" like Google! Secrets to writing sales copy that can increase sales by up to 400% (or MORE)! And much more! If you're unsure who Corey is, you should know that he's been a recognized expert in online marketing for a decade now. Not only has he generated $40,000,000 in online sales, his sites also attract 450,000 visitor a week! What's really great about Corey is that he can show ANYONE how to have a wildly profitable Internet business (that takes just a few hours each day to run)... ... even if you're an absolute computer dummy! And if you already have an Internet business, he can help YOU, too. The advanced sections of his system show you how you can increase your sales by 400%... 700%... even as much as 1,000%! I give Corey's system the highest rating possible! Its 1,300+ pages of step-by-step lessons contain the exact SAME tested and proven fast-growth strategies he has personally used to generate over $40 million in online sales -- starting on a shoestring budget! And it's the SAME SYSTEM that literally 1,000s of his students have used to drive "truckloads" of cash out of the Internet. I strongly urge you to check out Corey's wealth-building system as soon as possible! Click here for a FREE preview.

Make Money and Build Wealth in Four Steps!

This article is sponsored by: Internet Marketing Center

First, a definition of wealth. I'm not talking about a wealth of friends, or interests, or experiences. Those kinds of wealth are wonderful, definitely. But right now, I'm talking about money - lots of money.

Exactly what "lots of money" means is subjective, but let's say that when your annual income becomes your monthly income, you're playing in the wealth ballgame.

Wealth building, for the most part, involves four financial aspects:
* Growing a cash machine
* Allocating assets
* Spending planning
* Managing/eliminating Debt


*Growing a Cash Machine*
This is the most important aspect of the wealth building foursome. In fact, it is the foundation for the other three areas, whose sequence depends on the nature of your particular cash machine.

Your cash machine is an incorporated business, which is ideally based on leverage of your existing skill set. For example, say you are an automobile mechanic. That's a service. How can you leverage your skills so that you have a business that makes money while you sleep? (The definition of a cash machine).

Here's a scenario: People buying used cars come to your shop for inspection before they buy, and you realize that many of the things you check during your inspection, the consumer could easily check for themselves. You teach a class at the community college and you package the hand-outs you've created for the class. Make them into an ebook, hire a marketer, and voila' you have a cash machine.

That's simplified, but you get the idea. Wealth builders are generally entrepreneurs. Think of something similar you could do with your skill set, and grow a cash machine.


*Allocating Assets*
With the income from your cash machine, plus all your other assets, create a comprehensive plan for your assets to work for you. You've heard the saying, "Stop working for money and get money working for you." I advise you to read the book Rich Dad Poor Dad by Robert Kiyosaki if you want to know more about having money working for you.

If you haven't already put a team together to grow your cash machine, with asset allocation a team becomes critical. You'll need advisors to set up an incorporated business for your tax strategy as well as asset protection. And, you'll want a financial advisor to help create your overall plan.

One of your most important assets to allocate is time. Millionaires "hire" time. Invest in building yourself a team of experts and support personnel. In addition to expert advisors, hire bookkeepers, housekeepers, assistants, etc.


*Spending Planning*
When the cash starts rolling in, a common mistake is to allow spending to keep pace with the increased income. This makes for a cushy lifestyle, but isn't part of a good wealth building plan.

When you create your spending plan, it should reflect your personal priorities. It doesn't need to be restrictive (like a budget). Think of it more like a framework for financial decision-making that serves your long-term interests at the same time providing resources for you to enjoy the present.


*Managing/Eliminating Debt*
Once you've got your cash machine going, turn your attention to arriving at zero consumer debt: credit cards, mortgage, etc.

However, not all debt is bad. Sometimes, you want to leverage someone else's money. Buying income real estate is an example of such a time. But for the most part, a focus on minimizing or eliminating debt is a sensible part of any wealth building plan.

The ultimate goal of wealth building is financial freedom - when your passive income supports your lifestyle, and you work because you choose to, rather than because you have to. Use the wealth building foursome to lay the foundation of your financial freedom.

This article was written by Lila Norden

Lila Norden is a business and financial consultant. Lila offers valuable information to help you make decisions about your business growth and financial development. Visit Lila's web site FCI Money. Additional articles by Lila are also at Yes Investing and F-Com Finances
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