the single most popular financial analysis done by computer science geeks in the last two years...
relevant links:
Sunday, April 23, 2006
YHOO vs GOOG
the single most popular financial analysis done by computer science geeks in the last two years...
relevant links:
Thursday, March 23, 2006
efa
year long grah. I have ogften found graphical analysis to tell more and fabricate more than any numerical analysis. yahoo should sue google by the way about google linking google finance to a tiocker symbol search now. anyway for comparison i have to go to the second link now. well comping bak to he main point. I feel mdy has a much lower potential downside than SPY which has less risk than qqqq which is less than efa.
Sunday, March 19, 2006
more on google...
following up on my last post about investing in google and I in a vague imitation of nejamin graham's principles chose Dell over google, it turns out that as far thevalue of the investments is concerned both would have been rather rotten for the last two months but google lost almost 33% whereas dell lost 2%. the overall market ( snp ) made 2%. I have been reading the little book that beats the market,. I like the guy's appraoching to selling investment advice.
Monday, January 16, 2006
Can google still go up?
I guess that is not the question hedge fund managers look at. That is the question everybody else, the spectators of the stock market, look at and people put their money in these stocks thinking that maybe everybody else was right and they were wrong not bettng on it.. so let's correct our mistakes. But the truth is that the best fund managers bet on stocks whose names don't matter to them. In google's case if t can go up good for it and all its employess. Personally I think Dell has better chances of a 50% increase in the next two years, given the proactive thought process shown by upper management recently. SO although it's regression line is rather steeply low, it's good enough for me.
Sunday, April 03, 2005
Program Trading
Program trading in the week ended March 25 accounted for 55.7%, or an average of 900 million shares daily, of New York Stock Exchange volume. Brokerage firms executed an additional 550.4 million daily shares of program trading away from the NYSE, with 2.7% of the overall total on foreign markets. Program trading is the simultaneous purchase or sale of at least 15 different stocks with a total value of $1 million or more.
Distribution of motives:
Of the program total on the NYSE, 8.7% involved stock-index arbitrage.
Distribution of motives:
Of the program total on the NYSE, 8.7% involved stock-index arbitrage.
Thursday, March 31, 2005
hedge fund managers
Hedge fund mangers have some advantages: they can act quickly on both the
purchasing and sale side, although buying an entire company does not make
for an easy exit.
Private equity firms that study 100 firms for each one they buy, bring
indepth knowledge of industries, executive talent, operating skills and
regulation to the table when they consider investing in public companies.
--- gaurav
(Comp. Sci. Grad Student - Upenn)
http://www.seas.upenn.edu/~gauravch
http://www.geocities.com/gaurav_chak
Hedge Fund managers vs Private fund managers
Hedge fund mangers have some advantages: they can act quickly on both the purchasing and sale side, although buying an entire company does not make for an easy exit.
Private equity firms that study 100 firms for each one they buy, bring indepth knowledge of industries, executive talent, operating skills and regulation to the table when they consider investing in public companies.
Private equity firms that study 100 firms for each one they buy, bring indepth knowledge of industries, executive talent, operating skills and regulation to the table when they consider investing in public companies.
Hedge Fund managers vs Private fund managers
Hedge fund mangers have some advantages: they can act quickly on both the purchasing and sale side, although buying an entire company does not make for an easy exit.
Private equity firms that study 100 firms for each one they buy, bring indepth knowledge of industries, executive talent, operating skills and regulation to the table when they consider investing in public companies.
Private equity firms that study 100 firms for each one they buy, bring indepth knowledge of industries, executive talent, operating skills and regulation to the table when they consider investing in public companies.
Saturday, March 12, 2005
Investing tips
Seven golden rules of investing
By Nick Louth, MSN Money special correspondent
Last updated December 22 2004
These seven brief rules are really all you need to know to get a good leg up the investing ladder. Most of them work pretty well for ordinary savings too.
1. Start early, stay the course
Start investing young. If you do no more than put aside the cost of a bottle of Becks a day from the age of 18, and don’t raid it, you have already laid the foundations of a secure retirement.
Based on average stock market returns you will have £265,000 by the age of 65. If you wait until you’re 50 before starting, building the same pension pot will cost you the equivalent of a bottle of single malt scotch a day.
Click here for the full details of how youth helps investors
2. Low costs: the no-risk way to better returns
You want all your investment money to go to work for you, not the person who sold you your investment. So, for example, even though 2.5% a year in charges may not sound much, trimming that much off your investment pot year after year will have soaked up a two thirds of your total contributions after 25 years on a fund investment returning 7% a year.
For example, if you contributed £100 per month, that works out as £30,000 paid in over 25 years. At an average 7%, the fund would be worth £69,812 gross over the period, but after annual charges of 2.5% it would be worth a mere £50,027.
The same principle applies to trading commissions and account fees: keep them low and you get extra returns for nothing.
3. Don’t neglect the humble dividend
Reinvested dividends are the cornerstone of long-term stock market returns. They are the only part of share market returns which are never negative.
By contrast, share price returns are only about trying to outwit the market’s pricing mechanism. On average, by definition, we lose as often as we win. But dividends really add up, and their rate of increase is as important as their initial size.
See also ‘Get more from your dividends’
4. Don’t let small mistakes turn into big ones
This is a very important rule, especially for stock market investors.
The moment that an investment starts to go wrong, you should get out while the amount at stake is small. Profit warnings or even small unexplained falls in the prices of shares can soon do damage to your wealth.
Most importantly, never, never, add more money to a losing investment in an attempt to lower your break-even level.
See my article “How to deal with profit warnings”
See also “How to cut losses”
5. Never put all your eggs in one basket
This is essential advice, whatever kind of investments you have. Unexpected events can take place which hit particular shares, house prices, bond markets certain industries or countries, yet so long as we haven’t got everything riding on one type of investment, the outcome should be manageable.
But, for example, homeowners who have extensive buy-to-let market commitments, employees who have shares or options only in their own employer, or bank traders who invest their own savings in the field they trade, are running extra risks. This is especially so if they don’t have much in the way of cash savings should their bets fail.
Click here for more details on recognising and spreading your risk
6. If you don’t understand it, steer clear
This is true both of the complex investment products such as precipice bonds which were mis-sold, as much as it is of investors in technology shares which sounded impressive, but which rarely fulfilled their potential.
If you don’t understand what you have invested in, you will never know when to get out when the warning signs of failure are there for others to see.
7 Don’t fall for quick money promises
There is no risk-free way to become rich, and don’t believe anyone who says otherwise. The slow way to wealth, investing gradually and carefully in a wide variety of shares or in a low-cost tracker fund, is safe for those with a 10-20 year view.
If you fall for a scam or fraud, the chances are that your savings are going to go backwards. Opportunities that look too good to be true usually are, and the more impatient we are the more the chance there is of falling for them.
See ‘get started: why shares?’
By Nick Louth, MSN Money special correspondent
Last updated December 22 2004
These seven brief rules are really all you need to know to get a good leg up the investing ladder. Most of them work pretty well for ordinary savings too.
1. Start early, stay the course
Start investing young. If you do no more than put aside the cost of a bottle of Becks a day from the age of 18, and don’t raid it, you have already laid the foundations of a secure retirement.
Based on average stock market returns you will have £265,000 by the age of 65. If you wait until you’re 50 before starting, building the same pension pot will cost you the equivalent of a bottle of single malt scotch a day.
Click here for the full details of how youth helps investors
2. Low costs: the no-risk way to better returns
You want all your investment money to go to work for you, not the person who sold you your investment. So, for example, even though 2.5% a year in charges may not sound much, trimming that much off your investment pot year after year will have soaked up a two thirds of your total contributions after 25 years on a fund investment returning 7% a year.
For example, if you contributed £100 per month, that works out as £30,000 paid in over 25 years. At an average 7%, the fund would be worth £69,812 gross over the period, but after annual charges of 2.5% it would be worth a mere £50,027.
The same principle applies to trading commissions and account fees: keep them low and you get extra returns for nothing.
3. Don’t neglect the humble dividend
Reinvested dividends are the cornerstone of long-term stock market returns. They are the only part of share market returns which are never negative.
By contrast, share price returns are only about trying to outwit the market’s pricing mechanism. On average, by definition, we lose as often as we win. But dividends really add up, and their rate of increase is as important as their initial size.
See also ‘Get more from your dividends’
4. Don’t let small mistakes turn into big ones
This is a very important rule, especially for stock market investors.
The moment that an investment starts to go wrong, you should get out while the amount at stake is small. Profit warnings or even small unexplained falls in the prices of shares can soon do damage to your wealth.
Most importantly, never, never, add more money to a losing investment in an attempt to lower your break-even level.
See my article “How to deal with profit warnings”
See also “How to cut losses”
5. Never put all your eggs in one basket
This is essential advice, whatever kind of investments you have. Unexpected events can take place which hit particular shares, house prices, bond markets certain industries or countries, yet so long as we haven’t got everything riding on one type of investment, the outcome should be manageable.
But, for example, homeowners who have extensive buy-to-let market commitments, employees who have shares or options only in their own employer, or bank traders who invest their own savings in the field they trade, are running extra risks. This is especially so if they don’t have much in the way of cash savings should their bets fail.
Click here for more details on recognising and spreading your risk
6. If you don’t understand it, steer clear
This is true both of the complex investment products such as precipice bonds which were mis-sold, as much as it is of investors in technology shares which sounded impressive, but which rarely fulfilled their potential.
If you don’t understand what you have invested in, you will never know when to get out when the warning signs of failure are there for others to see.
7 Don’t fall for quick money promises
There is no risk-free way to become rich, and don’t believe anyone who says otherwise. The slow way to wealth, investing gradually and carefully in a wide variety of shares or in a low-cost tracker fund, is safe for those with a 10-20 year view.
If you fall for a scam or fraud, the chances are that your savings are going to go backwards. Opportunities that look too good to be true usually are, and the more impatient we are the more the chance there is of falling for them.
See ‘get started: why shares?’
words of the sage of omaha
Ten rules from the world's greatest investor
By Nick Louth, MSN Money special correspondent
Last updated February 3 2005
Learn to be a better investor from the master – Warren Buffett.
The Sage of Omaha – also know as Warren Buffett - is regarded as the world’s greatest investor, having turned $100 invested in 1954 into $41 billion by the end of 2004.
He’s pretty good with words too, as these ten sayings of his show.
1. “All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies.”
He makes it all sound so simple. Buffett is very choosy about which stocks he chooses to buy and when, and when he buys you can be sure he’s read right through the annual reports of not just it but the reports of each of its competitors.
What he’s looking for above all is companies with an enduring competitive advantage. If they’ve got that, he’s more than happy to hold for decades.
2. “If the business does well, the stock eventually follows.”
Too many investors spend their time worrying about a share price because they think its gyrations tell them something is happening at the company, something they don’t know about.
Buffett’s confidence in the few businesses he chooses to invest in is such that he doesn’t really care about market prices, which is a reflection of what others think of them. It certainly helps that he either buys outright or gets offered a place on the board of a number of companies that he invests in.
3. “Draw a circle around the businesses you understand and then eliminate those that fail to qualify on the basis of value, good management and limited exposure to hard times.”
Understanding what you invest in is the core of the Buffett approach. He has never owned a technology stock because he claims not to understand them. He restricts his investments to companies he really understands.
This tends to lead him to fewer holdings than many other professional portfolio managers have, but they are companies he knows intimately.
4. “In a difficult business, no sooner is one problem solved then another surfaces – there is never just one cockroach in the kitchen.”
...so don’t buy an aerosol of insecticide; sell-up and move house! Buffett’s striking analogy is another reinforcement, if anyone needs it, that you sell shares on the first profit warning. Things are usually going to get worse before they get better.
5. “When a management with a reputation for brilliance tackles a business with a reputation for poor fundamentals, it is the reputation of the business that remains intact.”
This isn’t always true, as Buffett would probably concede, but it is true very often. Don’t bet on corporate turnarounds being successful except where the businesses involved are actually pretty sound to begin with.
For every Reed-Elsevier or IBM, where the business was never really bad and the turnaround worked well, there are dozens like Jarvis or Invensys which are never going to return to their former glories.
6. “For some reason people take their cues from price actions rather than from values. Price is what you pay. Value is what you get.”
Warren Buffett must be one of the few investors who would be happy not to see share prices for his investments for weeks at a time.
He cares so little about the market’s valuation that he actually prefers to see prices falling for shares that he intends to continue buying to make them cheaper. Most of the rest of us feel nervous if we don’t get some validating price rises fairly soon after we’ve started buying a particular stock.
7. “I put heavy weight on certainty. It’s not risky to buy securities at a fraction of what they’re worth.”
Most of Buffett’s approach to investing came from Benjamin Graham, often known as “the father of securities analysis”. In the late 1940s Graham pioneered the concept of value investing, where shares are bought only when they are worth less than the sum of their assets.
Specifically, Graham said that shares which traded at 2/3rds of the value of quick assets (those which can be rapidly sold) could be safely bought. On a typical day there aren’t many companies you could buy at that kind of discount, but just occasionally there are times when vast numbers of firms are being given away at these prices. That leads on to the next rule...
See jargonbuster on net asset value
8. “Most people get interested in stocks when everyone else is. The time to get interested is when no-one else is. You can’t buy what is popular and do well.”
Buying shares when no-one is interested in them would have mean’t getting out your chequebook in the depths of the 1930s depression, in 1975 when UK inflation was soaring and there was secondary banking crisis, and in the first three months of 2003 when the war with Iraq was looming.
Not many casual investors even think about shares when the economy is in dire straits or when we are close to war, which is why many of them only get into shares just as everyone else does and the real value is evaporating.
See my article on contrarian investing
9. “In aggregate, people get nothing for their money from professional money managers.”
In the long term money managers fail to beat the markets against which they measure their performance. Very few buck this trend. It isn’t surprising, really, because funds of one form or another dominate the stock market. What is surprising isn’t that fund managers on average perform averagely, because that is true pretty much by definition. What is amazing is the fact that they get away with charging so much for it.
See my article 'Who needs fund managers?'
10. “You go to bed feeling very comfortable about two and a half billion males with hair growing while you sleep. No-one at Gillette has trouble sleeping.”
This isn’t so much a rule as a celebration of the kind of company that Buffett adores. Gillette has one of the most secure market niches of any company, with a brand that is trusted worldwide.
Though the company has had its troubles even during the years when Buffett was a director, it has come good in the end. Procter & Gamble last week offered to buy Gillette for $57 billion, making the combined group the world’s largest consumer goods company. The offered represents an 18% premium to the Gillette share price, and was described as a “dream deal” by Buffett.
By Nick Louth, MSN Money special correspondent
Last updated February 3 2005
Learn to be a better investor from the master – Warren Buffett.
The Sage of Omaha – also know as Warren Buffett - is regarded as the world’s greatest investor, having turned $100 invested in 1954 into $41 billion by the end of 2004.
He’s pretty good with words too, as these ten sayings of his show.
1. “All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies.”
He makes it all sound so simple. Buffett is very choosy about which stocks he chooses to buy and when, and when he buys you can be sure he’s read right through the annual reports of not just it but the reports of each of its competitors.
What he’s looking for above all is companies with an enduring competitive advantage. If they’ve got that, he’s more than happy to hold for decades.
2. “If the business does well, the stock eventually follows.”
Too many investors spend their time worrying about a share price because they think its gyrations tell them something is happening at the company, something they don’t know about.
Buffett’s confidence in the few businesses he chooses to invest in is such that he doesn’t really care about market prices, which is a reflection of what others think of them. It certainly helps that he either buys outright or gets offered a place on the board of a number of companies that he invests in.
3. “Draw a circle around the businesses you understand and then eliminate those that fail to qualify on the basis of value, good management and limited exposure to hard times.”
Understanding what you invest in is the core of the Buffett approach. He has never owned a technology stock because he claims not to understand them. He restricts his investments to companies he really understands.
This tends to lead him to fewer holdings than many other professional portfolio managers have, but they are companies he knows intimately.
4. “In a difficult business, no sooner is one problem solved then another surfaces – there is never just one cockroach in the kitchen.”
...so don’t buy an aerosol of insecticide; sell-up and move house! Buffett’s striking analogy is another reinforcement, if anyone needs it, that you sell shares on the first profit warning. Things are usually going to get worse before they get better.
5. “When a management with a reputation for brilliance tackles a business with a reputation for poor fundamentals, it is the reputation of the business that remains intact.”
This isn’t always true, as Buffett would probably concede, but it is true very often. Don’t bet on corporate turnarounds being successful except where the businesses involved are actually pretty sound to begin with.
For every Reed-Elsevier or IBM, where the business was never really bad and the turnaround worked well, there are dozens like Jarvis or Invensys which are never going to return to their former glories.
6. “For some reason people take their cues from price actions rather than from values. Price is what you pay. Value is what you get.”
Warren Buffett must be one of the few investors who would be happy not to see share prices for his investments for weeks at a time.
He cares so little about the market’s valuation that he actually prefers to see prices falling for shares that he intends to continue buying to make them cheaper. Most of the rest of us feel nervous if we don’t get some validating price rises fairly soon after we’ve started buying a particular stock.
7. “I put heavy weight on certainty. It’s not risky to buy securities at a fraction of what they’re worth.”
Most of Buffett’s approach to investing came from Benjamin Graham, often known as “the father of securities analysis”. In the late 1940s Graham pioneered the concept of value investing, where shares are bought only when they are worth less than the sum of their assets.
Specifically, Graham said that shares which traded at 2/3rds of the value of quick assets (those which can be rapidly sold) could be safely bought. On a typical day there aren’t many companies you could buy at that kind of discount, but just occasionally there are times when vast numbers of firms are being given away at these prices. That leads on to the next rule...
See jargonbuster on net asset value
8. “Most people get interested in stocks when everyone else is. The time to get interested is when no-one else is. You can’t buy what is popular and do well.”
Buying shares when no-one is interested in them would have mean’t getting out your chequebook in the depths of the 1930s depression, in 1975 when UK inflation was soaring and there was secondary banking crisis, and in the first three months of 2003 when the war with Iraq was looming.
Not many casual investors even think about shares when the economy is in dire straits or when we are close to war, which is why many of them only get into shares just as everyone else does and the real value is evaporating.
See my article on contrarian investing
9. “In aggregate, people get nothing for their money from professional money managers.”
In the long term money managers fail to beat the markets against which they measure their performance. Very few buck this trend. It isn’t surprising, really, because funds of one form or another dominate the stock market. What is surprising isn’t that fund managers on average perform averagely, because that is true pretty much by definition. What is amazing is the fact that they get away with charging so much for it.
See my article 'Who needs fund managers?'
10. “You go to bed feeling very comfortable about two and a half billion males with hair growing while you sleep. No-one at Gillette has trouble sleeping.”
This isn’t so much a rule as a celebration of the kind of company that Buffett adores. Gillette has one of the most secure market niches of any company, with a brand that is trusted worldwide.
Though the company has had its troubles even during the years when Buffett was a director, it has come good in the end. Procter & Gamble last week offered to buy Gillette for $57 billion, making the combined group the world’s largest consumer goods company. The offered represents an 18% premium to the Gillette share price, and was described as a “dream deal” by Buffett.
Subscribe to:
Posts (Atom)
