Investments & Loans

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Investments & Loans is a personal finance blog. Personal finance blogs love to talk about saving money. And, we love to talk about being sensible with your money. And on some of the better personal finance blogs we love to talk about how to make money.

Investing

Investment strategy that is smart, that you can understand and that you can control is one of the foundations to increasing net worth. Here we support two basic investment philosophies.. The Bogel Style and The Buffet Style.

(At least that is what we like to call them..)

Bogel Style

Bogel Style is all about index fund investing. The Bogel style is one that thinks Index Funds are good. No make that great. (Obviously not mutual fund employees here..)

What are Index Funds?

Index funds are essentially a snap shot of the market. They are passively managed, pooled investor funds, which are placed against stocks that make up a reflection of a market index (for example the dow jones, or the all ordinaries). The fund buys stocks in the exact proportions they exist in the market index. So, what happens to the market happens to the fund.

Natural market forces is the idea here.

If you ask the theoretical experts, like your friendly Harvard professor for example, if it is ridiculous to believe you can outperform the market for the long term, they will agree.

Index funds match the market. And the market does very well over the long term. So, if you are looking for a place to keep your money. Index funds might be a good start.

Buffet Style

When it comes to out performing the market, no one does it better than Warren Buffet. Buffet Style is one that goes for Value. Warren Buffet famously seeks to buy undervalued investments, and will wait years for the right price.

This is the essence of the Buffet style. Value investing.

The Buffet style waits patiently until it finds an investment that is under priced. And then it holds nothing back in its acquisition. This principle can be applied to wealth accumulation, your career, your private business ventures, whatever represents value to you in your life. Wait for great opportunities and then seize them.

This is especially so in direct stock investment.

If you are one that is keen to dabble in the stock market, whether seriously or just for fun. Value investing is worth investigating. To be a good value investor you need to understand the stock you are looking at, you need to do your research and you need to understand the market for that company too.

The better you understand these fundamentals the better your eye for a good buy will be.

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