Arguably, purchasing financial products, such as stocks & shares, ISAs, Mortgages, Treasury Bills, Interest Bonds etc, can be very complex to understand. However, this should not be the main reason why consumers should choose to give their money to a bank or fund manager to invest it. Also, many people shy away from high-return opportunities citing that, “they don’t invest in things that they don’t understand”, instead of finding the relevant educational and human resources to help them understand. Do you think Richard Branson knows anything about “Rocket Science”? Yet, he is eager to make virgin launch the first commercial passenger-carrier to shuttle people to space and back. He will make more millions!
The world of investing has changed and no longer can consumers rely on Banks and Financial advisors to secure their financial future, especially in the aftermath of the 2008 crisis. Sadly, many amateur investors confidence have been terribly shaken as a result of the mis-selling of various financial products and most of them will retire without a pension or sufficient money to pay for their elderly care. Additionally, most investors’ endowment mortgages will be inadequate to pay for their home, let alone for their children to inherit it.
Today’s generation must get to grips with self-investing as it will play a significant role in determining their future financial success. For to long, investors have been fooled by banks and fund managers, so the later can earn lofty commissions. But now, the power has shifted as it has become inevitable for consumers to be inside investors or perish. Think about it!
Do you believe that the people listed in the top 1,000 of the Forbes Rich List accumulated their fortune from buying financial products advertised by Banks and Hedge funds? No! They are all inside investors. They self invest. It’s time you re-think your strategy.
Today, your challenge is to determine whether you are sufficiently equipped to self-invest.
Wednesday, 18 November 2009
Friday, 6 November 2009
The inside investor:
Robert Kiyosaki stated in his book, “Rich Dad Guide to Investing”, that he “found his financial freedom when he became an inside investor”. According to his definition, an inside investor is someone who is on the inside of the investment and have some control... In other words, inside investors are people who are busy managing their investment rather than buying an investment product managed and controlled by others (i.e. fund managers).
Additionally, inside investors are the early birds in the creating and building of an investment opportunity which eventually grows into a portfolio of solid assets, which subsequently receives other people investments.
Note also, that inside investors have at their finger tips, a team of experts (Lawyers, Accountants, Tax advisors etc); and as existing research findings show, inside investors returns on investment have consistently outperform the returns that they would otherwise get from putting their money into opportunities in general market. Thus, there is a strong case to support the view that an information hierarchy exists, in that, inside investors are usually in pole position to capitalise on off market (or non-public) asset sales.
So, these people are hardly ever interested in acquiring assets that are on the open market or advertised in the papers (FT or Wall Street Journal) etc. Instead, they want to be the first bird that catches the worm. In this way, they can exploit the returns on both investment capital and equity that the worm offers. Hence having access to information first is another way they exert their control. Also, control over their investment is exemplified in another form, in that, their experts provide them with strategic advice that can affect both the size of growth and returns they can achieve on asset purchases. Therefore, being an inside investor helps to reduce risk and accelerate ones wealth quickly, since one is inspired by returns in the region of 50%, 80% or even 200%.
Do you know that a relatively small number of property portfolio builders control nearly $100 trillion in property investments. Thus, it comes as no surprise; therefore, those inside investors have the added advantage of building multiple portfolios, outsourcing management of operations and focus on managing inward cash flows.
What is holding you back from becoming an inside investor?
Additionally, inside investors are the early birds in the creating and building of an investment opportunity which eventually grows into a portfolio of solid assets, which subsequently receives other people investments.
Note also, that inside investors have at their finger tips, a team of experts (Lawyers, Accountants, Tax advisors etc); and as existing research findings show, inside investors returns on investment have consistently outperform the returns that they would otherwise get from putting their money into opportunities in general market. Thus, there is a strong case to support the view that an information hierarchy exists, in that, inside investors are usually in pole position to capitalise on off market (or non-public) asset sales.
So, these people are hardly ever interested in acquiring assets that are on the open market or advertised in the papers (FT or Wall Street Journal) etc. Instead, they want to be the first bird that catches the worm. In this way, they can exploit the returns on both investment capital and equity that the worm offers. Hence having access to information first is another way they exert their control. Also, control over their investment is exemplified in another form, in that, their experts provide them with strategic advice that can affect both the size of growth and returns they can achieve on asset purchases. Therefore, being an inside investor helps to reduce risk and accelerate ones wealth quickly, since one is inspired by returns in the region of 50%, 80% or even 200%.
Do you know that a relatively small number of property portfolio builders control nearly $100 trillion in property investments. Thus, it comes as no surprise; therefore, those inside investors have the added advantage of building multiple portfolios, outsourcing management of operations and focus on managing inward cash flows.
What is holding you back from becoming an inside investor?
Sunday, 1 November 2009
Case studies preview:
A friend of mine, M Anthony-Lee, left his job as an investment banker in the city in 2003 as he had bought two repossessed gold mines; one in Guyana and the other in Sierra Leone. In 2003, gold price per ounce averaged around US$200-US$230.
As of October 2009, gold price per ounce is averaging around US$1,000. Calculate the returns over 6 years. Then, multiply that by every ounce of gold that was found.
For confidential reasons we will not disclosed there returns online. however, if you would like to learn how MAL did, then email us and we will reply to you within a few days.
What's in your portfolio?
As of October 2009, gold price per ounce is averaging around US$1,000. Calculate the returns over 6 years. Then, multiply that by every ounce of gold that was found.
For confidential reasons we will not disclosed there returns online. however, if you would like to learn how MAL did, then email us and we will reply to you within a few days.
What's in your portfolio?
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