How Warren Buffet, World's greatest investor escaped biggest stock market crash

How Warren Buffet, World's greatest investor escaped biggest stock market crash: Many decades ago when stock market was booming and a lot of people making fortune from it. The bull so influenced the market that even the dust in the street knew something was happening. Warren's heart melted when his shoe maker called his attention to a scrap of paper which he pulled from his pocket and said, "Mr. Buffet, they said these stocks are bound to pull the strings in the few days and i bet you can make real money if you invest in them immediately" This is when it dawned on Warren that, if stock can be traded in streets by mere novices, then the market is in trouble and headed for a scratch. Warren Buffet did not waste time in off-loading his investment into safe heaven and too too long after this the market caved in.

Warren Buffet's current strategy: Warren Buffet does not only have gumption for forecasting the direction of the stock market, he has also over the years been able to ascertain the direction of the market by his investment decision. In the face of thick economic recession, Warren Buffet strategies were quite unusual, instead of exposing his company's portfolio to more risk, he reverts to his personal portfolio which is 100% into government bond, a portfolio he spends a lot of his personal wealth into buying government securities and this has not in any way been affected by current melt out. We know that government bonds are most secured investment instrument known. Government will always have money to pay back investors.

Why people loose money at the stock market

Why people loose money at the stock market: The first factor is "NO EXIT STRATEGY" The level of your greed determines how much loss a person will incur in the stock market. You can not be greedy and at the same time make money. A greedy man in the stock market is the man who buys a stock for example at $2 and even when the stock appreciates two months later to $4 refuses to sell but wants to sell at $200 within the next 8 months. Eventually such a person ends up losing all. Another factor that can make someone to loose money in the stock market is fear. When you are afraid of losing money in the stock market, you may eventually loose it. It takes a man to first see money with his mind before he can see it with his eyes. You need foresight in the stock market to make money and avoid loss. If you do not see money in the stock market you see loss and what you see is what you get.
In addition to the factors above, one major thing a lot of investors fail to do in stock market is to ascertain the right time to sell. This cause so many investors a lot of losses because they fail to sell at the right time. Another factor is ignorance. Ignorance is a killer and to kill your ignorance about the stock market, you need to educate yourself by attending financial seminars, reading books and other materials about capital market. If you don't want to loose money in 2009, then you must carefully take note of the following when going into any investment. Time to buy, Time to hold and Time to sell. If you discreetly master the three factors above, then you can be sure to avoid any loss. Out of these three the most important is the time to sell. Let me emphasize that if you overlook this, then you may have to overlook your losses as well

De-materialization and Re-materialization in Stock Investment

De-materialization is the conversion of a share certificate from its physical form to electronic form for the same number of holding which credited to your dematerialization account which you opened through a depository participants. De-materialization is a process by which the company takes the physical share certificates of an investor back and an equivalent number of securities are credited in electronic form to the depository. Depository is an organisation where the securities of a shareholder are held in electronic form.

Re-materialization is a process by which a shareholder can get his holding converted back into physical form of share certificate. Benefits of De-materialization to investors: A safe and convenient way to hold securities. The depository system reduces risks involved in holding physical certificates e.g. Loss, theft, mutilation, forgery, etc. It ensures transfer settlement and reduces delay in registration of shares. It ensures faster communication to investors. It ensures faster payment on sales of shares. It provides more acceptability and liquidity of securities.

Investment Club As A Learning Platform

Investment Club As A Learning Platform: An investment club is a group of people with similar interest, they could be friends, families, neighbours or work colleagues; the yard stick must be common investment interest. Investment clubs unlike other kinds of club bring together people who meet regularly to discuss the way and manner their money is being used to buy shares in the stock market or any other investment instrument used by the club. Because of the need to team up with like minded investors, both experts and other people, investment club provides opportunity for club members to learn about investments instruments like the stock market. Members can, through such meetings develop investment skills as club members share experience and learn from each other.
Investment club create an opportunity for people with different knowledge and background in different areas to be able to come together and positively influence investment decision in the club as regards their investments. Experts in different areas can bring ideas together, instead one studying all the area, you find everyone studying different areas and imparting this on the club performance. You can benefit from a wide range of knowledge and opinions. The advantages: Joining an investment club is not usually about making a fortune but instead, learning more about investing in a fun environment. Whether you have bought shares in the past or not, you are bound to discover other people have different and successful ways of investing and knowledge you do not possess.
INVESTMENT CLUB AS A FINANCIAL HOUSE FOR SMALL SAVERS. Club members pool together financial resources or surplus cash from their income to invest in the stock market. Setting up a club is to be able to pool small amounts of cash to invest in shares.