July 24, 2008
Definition Of Stock Exchange
Its Stocks, Not Markets, that Bring Investment Success by Gabriel Nijmeh
If you are fairly new to investing and looking for some guidance or if you are seasoned investor, let me introduce you to NAIC.
National Association of Investors Corporation (NAIC) is a non- profit, tax exempt organization whose membership consists of investment clubs and individual investors. Founded in 1951, the mission of NAIC is to provide investment education, information and support. They prescribe to four basic, yet timeless investment principles:
1. Invest regularly, regardless of the present outlook for the economy or stock market.
2. Reinvest all earnings, letting the power of compounding work for you.
3. Discover growing companies so that your wealth can grow as their sales and earnings grow over the years. 4. Diversify your holdings, and don’t put all your eggs in one basket, regardless of how carefully you watch that basket.
The late George A. Nicholson, Jr. CFA - father of the modern-day investment club movement, gave these principles to a good friend in 1939 and told him that if he followed them he would make the money he needed to start his own business.
“I never thought these principles would be so aggressive,” Nicholson once told Better Investing editors. “They were meant to be defensive, to protect investors from losing money. They turned out to be quite offensive, too.” He enjoyed comparing this approach to investing with his college football experiences. “The best offense is a strong defense.”
I can attest from own experience of such a disciplined investment program. For the most part, I have invested exclusively in mutual funds because I never had the time or experience to properly research and analyze individual stocks. One day as I was reading through the business section of my local newspaper, I came across an organization called the Canadian Shareowner Association (CSA) which piqued my interest. I started researching it a little more and as a result of my research stumbled on NAIC’s web-site, which then lead me to learn about Warren Buffet and his style of disciplined investing. The Canadian Shareowner Association follows a lot of the investment principles of the American based NAIC.
Membership to CSA is inexpensive and the educational materials are very informative and drive home the above noted investment principles. For only $79 a year, I decided to join the CSA which includes a bimonthly magazine with two company stock studies, market outlook, financial planning and more. In addition, I have access to the low cost investing program where I have set-up my investment plan. The great thing about such a program is that you can buy shares in any dollar amount from such companies as Johnson and Johnson, Microsoft, Pfizer, Wal-Mart. Your money is pooled with other investors and trades are executed during specified trading windows. For example, if you invested $50 in a stock that is trading at $30, you will own 1.67 shares. Another great feature is that dividends are automatically reinvested allowing for compounded growth.
Whether you join an investment club or are a self-directed investor, you work at your own pace. Learning how to analyze companies using the stock selection guide which is a tool that was created over fifty years ago and is organized in five sections. The section guidelines will help you determine if the company would be a good investment by:
1. Evaluating historical sales and profit growth and estimate future growth
2. Analyzing historical management performance 3. Analyzing historical profit and price data 4. Evaluating risk and reward and; 5. Determining the potential return on an investment.
The software is easy to use and you can download company profiles with historical information thus saving you data entry effort. As company financials are released quarterly and yearly, you just enter the information and keep an eye on performance.
For more information, you can check our http://www.better-investing.com or http://www.shareowner.com to find out more information.
Finally, if you want to be a successful investor keep in mind the following:
1) A focus on the long term. 2) A discipline to apply in building and managing a portfolio. 3) Patience to persevere.
Bear or bull markets, a sound, disciplined investment strategy will bring you investment success over the long-term.
Gabriel is the editor and webmaster of The Money Advisor - http://www.the-money-advisor.com. He believes that everyone is capable of controlling their financial destiny with the right combination of rich thinking and smart action. The Money Advisor, a knowledge network of people, articles, tips, e-books and ideas about making money, saving money and building wealth!
Do you know where the term “footbed” comes from? Most people have no idea that the term originated with the revolutionary sandal maker Konrad Birkenstock a 19th century shoemaker from Germany. Before Birkenstock shoes were all made with completely flat soles and had no arch support. They developed a revolution in shoe making by designing footwear that matched the actual shape of a person’s foot.
Initially their idea was sold as an insert to be used in other shoes that had no shape. Their company took off as a major manufacturer of orthopedic inserts. They were called “footbed supports” and the term ‘footbed’ became a legal trademark of the Birkenstock company.
As time went by they realized that their novel footbed support concept could be extended into different types of footwear that they could make themselves. The original sandals they developed were intended to give the wearer a near barefoot experience while still providing fantastic support and protection of the wearer’s sole. Little did they realize how much of a revolution they would create in the shoe and footwear industry.
People quickly found that not only were they comfortable, but they also helped greatly with many foot and back problems by providing the arch support and proper fit that had been missing in shoes and sandals to that point. Today Birkenstock sandals and other footwear are frequently ‘prescribed’ by podiatrists as part of normal care for people with foot, lower leg, and back problems. In particular the ‘heel-less sandals’ are known to greatly strengthen and tone calf muscles.
From their humble beginnings as simple shoemakers, Birkenstocks have become producers of some of the most recognized shoes and sandals in the world. They are available in hundreds of styles, materials and colours that will suit just about anyone’s needs and personality. And they have done it by sticking to their basic philosophy: make them comfortable and make them last.
About the Author:
http://www.birkenstock-sandals-and-clogs.com provides in depth information and reviews on Birkenstock Sandals and most other Birkenstock footwear.
