Shares

Behavioral Finance - Use The Investor Psychology To Your Advantage

Saturday, July 26th, 2008

The Text Book Approach To Investment

Theoretically stock prices are guided by the ‘efficient market hypothesis’. Here are the fundamentals of this hypothesis:

The price of stocks already reflects all the available information.
Investors behave rationally - they use the information available to decide whether to buy or sell a stock

If the markets were efficient all the time, [...]

ASX Sharemarket Game

Wednesday, July 23rd, 2008

ASX website is an excellent resource for anyone interested in investing in shares. There is a registered section on the website. This section has the following resources:
1. Investment Clubs
2. Online Classes
3. Watchlist
4. ASX Schools Sharemarket Game
5. ASX Sharemarket Game
6. Email Newsletter
One of my goals for 2008, is to learn about investing in shares and to [...]

Watch Lists - Starting Point For ShareMarket Investing

Monday, July 21st, 2008

A Watch List is a list that you set up to monitor the price of stocks and the value of your portfolio. It records the daily price movements and also has historical price information for each of the stocks on the list. If you already own one or more of the stocks in the list, [...]

Real Estate Investment Trusts (A-REIT)

Friday, July 11th, 2008

Real Estate Investment Trusts were previously known as Listed Property Trusts. These are listed investment trusts with investments in property. There are around 70 A-REITs on Australian Stock Exchange.
The property sectors in which these trusts invest are:
* Industrial - investment in warehouses, factories etc
* Office - [...]

Mum and Dad Index

Wednesday, July 9th, 2008

When Telstra listed on ASX, a lot of people became shareholders of a publicly listed company for the first time ever. And then came AMP. Then came Commonwealth Bank, Woolies, Coles and TAB (not sure about the order but they all listed in the past 15 years). A lot of mum and dad investors invested [...]

Warren Buffet Investment Style - Invest Where You Spend

Wednesday, July 2nd, 2008

Most of us have heard of Warren Buffet - he is one of the richest men in the world. His company, Berkshire Hathaway Inc, has made its shareholders multi millionaires. It is Buffet’s investment style that has made this possible.
Many books have been written about Buffet’s investment style and his methodology in picking stocks [...]

Margin Loans - A Brief Introduction

Sunday, June 29th, 2008

Margin Loans is borrowing money to invest in shares and managed funds. Existing cash or securities or both is used as security when you borrow money. Since you are borrowing to invest, the total amount of your investment increases and thus increasing the size of your investment returns - your returns are multiplied by gearing.
The [...]

Domestic Index Exchange Traded Funds

Sunday, June 15th, 2008

Exchange Traded Funds (ETFs) are basically listed managed funds. ETFs offer you the opportunity to invest in a diversified portfolio of assets. The underlying assets could be shares, commodities or fixed interest.

There are three basic types of ETFs that are traded on Australian Stock Exchange.

1. Domestic Index ETFs - tracking the domestic indicies
2. [...]

What Is The Story With ABC Child Care Centres?

Tuesday, March 25th, 2008

Eddy Groves is a classic rags to riches story. Eddy had an entrepreneurial streak right from a young age. At the age of 19, Eddy started his business career as a distributor for Paul’s milk. After some initial hardships, his milk distribution took off and Eddy was looking to diversify his business interests. He [...]

Equity Warrants

Monday, February 11th, 2008

Equity Warrants are short dated securities based on a underlying share that gives you the option to buy or sell the underlying share at an already decided price. With equity warrants you can trade at a much lesser initial investment than what you would with the underlying share on which this warrant is based. So [...]

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