Hey we had some really good discussions going about stocks and investing in one of the other thread, but I can't seem to locate where it went.

Been really busy so didn't get a chance to update or chime in but i think u_day bro had some kind of stocks he wanted to look into? I was gonna get back to that but just got so darn busy...so hey man if you happen to read this let us know. may be we can all explore the stocks together.

these days i've been mostly looking at steel stocks because in the last 1 year, they have produce some amazing returns.

i think we have passed the information era for now and have entered the Destruction and Construction era, considering all the wars and conflicts around the world. so, if you think about it, you need steels for both destruction as well as construction. ya feel me??

holla

Yeah, I was wondering where that thread went.

Anyway, has anybody read a book called "The Little Book That Beats the Market" by Joel Greenblatt? It seems to be the big rage now among the amateur investors. If anybody here has any opinion about Greenblatt's methodology, I would like to hear.

haven't heard about that book Chatmandude bro, but if anyone has do share thoughts on it.

i have read The Intelligent Investor by Benjamin Graham and that is by far the best book on investment I have come across. would highly recommend for anyone how hasn't read it.

Yup, I read The little book that beats the market. It's a very tiny book, and basically he directs you to his website, magicformulainvesting.com and asks you to select about 20 or so stocks(say $500 per stock). Selecting just one stock and hoping that you're gonna make profit is not a good move. Even 5 different stocks might not be a good idea. Diversify as much as you can. Or if you wanna screen on your own do this: screen by ROA and then from that list select the stocks with the smallest P/E ratio.
I'm trying this strategy right now. He says that the average rate of return is about 25-30% and basically you need to switch stocks on an annual basis.

Yes, I'm reading Benjamin Graham's The Intelligent Investor right now(prefaced by none other than Warren Buffet).

P.S. You'll have a better return if you invest in small-caps. Now, I don't know if it's a scam or not. The guy is an ivy league professor. I'm definitely trying it. The only cause for concern is that if everybody starts using the formula, the formula might not work anymore. But he says not everybody will stick to the formula because his so-called "magic formula" isn't foolproof. There have been times when the rate of return has been negative.

That sounds like an interesting approach, thugged)out. I have taken a similar strategy but holding onto the stocks rather than selling annually.

Do share your progress using Greenblatt's formula in the days ahead.

Thanks

I guess, on Joel Greenblatt's strategy, the key is to stick to it for 3 to 5 years as it requires. I went to the bookstore and read the whole book in one sitting, took me less than two hours. I found the book very simple, which does not mean it is bad, and easy to understand for someone like me who is a novice investor. The emphasis is to direct the reader to his website, which is free for now. But, as with all brilliant stock strategies, it is all retro looking, meaning, the strategy looks wonderful when the past data is calculated, but one never knows whether it will work in future. O'Saughnessy phenomenon is a shining example of this, in which lot of people lost lot of money. Oh well, one has to make the decision on his/her own.

Thanks for recommending Graham's book, The Intelligent Investor. I borrowed it from the local library and will delve into it soon.

Friends, let's keep this discussion rolling. With all the trash talk going on in Sajha, it is refreshing to read a thread that actually is decent and worthwhile.

hukka dude! it's under seperate discussion forum called INVESTMENTS.

Go to the homepage, click on other discussions/resources and there you will find the lk to investments discussions.

good luck.

I should have bought PFE back in late december/early january when the price was hovering around $22. Since then the stock is up close to 50%.

I feel like Mr. Buffet when he waited for Walmart (WMT) to fall from $22 to $20 and missed the opportunity to buy a great stock.

Here's the link to the discussion:

http://www.sajha.com/sajha/html/openforum.cfm?forum=273

If you are young, just buy penny stocks(these are stocks that sell for less than a dollar per share). Keep in mind that penny stocks have much lower volume. So their prices fluctuate very rapidly. In only a 6 months, your value can in fact double, or even quadruple. Then sell your stocks at that price. But study the fundamentals of the company before you take the leap. It is a huge risk. MSFT started as a penny stock and look where it is now. MSFT is a large-cap company these days. Now there is more risk involved, but the benefits might outweigh the risks if you are wise in your decisions. Also, try IPOs as well. Once again, risks are greater. According to some analyst whose name I forget, if you had invested in all IPOs in the 1960s, you would be a ZILLIONAIRE(zillions of times richer than a billionaire). If you are young, then you should take more risks than somebody who is old. Buy IPO stocks and penny stocks. Also try shorting companies that are bound to collapse like Merck for example. Remember how soros shorted British pounds in the 1990's? That was risk. He made a BILLION dollars by shorting British currency. So think about that. Also try index funds. Index funds are highly diverse and you're basically moving with the market. In other words, if the market returns 20%, that'll be your return as well. Also try companies with BIG dividends. There are companies that pay dividends in the UPWARDS of 20%. Once again, risks are great, but 20% is A LOT. THINK ABOUT IT.If the stocks move up, that could in fact even mean 40%+ return if your stock values increase by 20%!!!!!!!! Also try emerging growth stocks. These are companies with high growth rate, but they are not making any money. These are companies like XM and SIRIUS.



P.S. Don't blame me if you lose all your money.

penny stocks are for day trading or at least short term. they are for buy'nsell, not buy'nhold.

I am no stock guru, but from my experience, penny stocks are high risk high gain proposition. Most of the penny stock companies go into OTC trading, and soon get kicked out. So, one has to be really really really risk averse to play in that sphere. I personally would not recommend it. Just my two cent stocks.

Nepali brother and sister, it's good to hear all these money making skills . I always wanted to learn about stock business myself, but not being a business major and getting too tied up with this shitty life, it's just a dream now. Eventually I've decided that I do not have time to go to college to learn about it, so I might get friends' help to learn( like crash course and watching them, talking and asking, barbeque etc etc). But sadly, I've none who are into that, mostly musicians only. Watching TV and trying to learn is too tough, reading books make me fall asleep ALL the time.
I've have a Nepali brain (I mean not a idiot), I can learn fast by watching, talking and I do have a college degree. If you guys can be the friend I was looking for, this will be awesome, although I'd prefer who I can hang out with, but that's still feasible in the future.
Please let me know, if there's any hope or is it too late for a 30+ guy with a smart wife. Where do I start?
Muri Muri Dhanyebad

hey u_day bro, nice to see you back here talking about stocks and making money. i am really disappointed in you for not buying any Pfizer stocks. after our last stock disucssion in another thread where we talking about Merk and Pfizer, I ended up bying some PFE stocks at around $24 per share and I am glad I did. I don't think the price is still too high as it is trading for around $25+. I picked Pfizer over Merk, so hope in the long run I made the right choice. One of the hidden gem stock I have is called Biomarin Pharmaceutical: http://finance.yahoo.com/q?s=BMRN
Currently priced around $11 per share and it has vertually no competitors, so this is a great great buy for long time investors.

About penny stocks, I know there is a very high reward possibility but I think the risk on it outweighs the rewards. Hardly any of these penny stocks survive and sometime they are part of some kinda scams too. Having that said, I do own some penny stocks that I am keeping for long term investment. Green Energy Resource GRGR.PK priced around $.75 http://finance.yahoo.com/q?s=GRGR.pk Go and read about it and see for yourself what they are involved in. I really see this company can have a future and thats why I am disclosing this with my fellow nepalis here.

Vhootee bro, you sounded a lot like me about 2 years ago but minus the age and wife hai...lol My advice first, start looking into stocks prices and patters. I use yahoo for mine
http://finance.yahoo.com/ Then start looking at companies that you are familiar with and their stocks patterns. For example I will give you the link to Dell Computers http://finance.yahoo.com/q?s=DELL
And after you get a bit familiar with stock prices and companies, come up with a small amount of found (I would say about $2,000). Now find the stock you want to buy and monitor it for at least 2 months, read all the news about it and see what drives the price up and what can bring the price down. Because if you invest right away, stock market will drive you nuts as one day you gain $100 next day you are down $500. So avoid that kinda shock and any kind of stupid decission you might take, i really recommending first being a stock market spectator first and then only stock investor. So, give it a shot and see how it goes for you. We'll be here for you along the way to help ya with questions :-)

Hukka bro asti ko download ko lagi dhanyebaad :)

Dheba maru kaso garu ahile. 5 figure investment garna sakdina ma. Someone mentioned about investing in Sirus radio last time. 4 figure ma yesma diu ki bhaneko niko lagena malai.

Tyai ni, I will keep tab of your analysis and suggestions. Can you suggest another Enron that still has couple of years to fall flat? ;) I want to make hay when the sun shines. Haha.;)

Keep it coming bro.

IndisGuise:)

Hey IndisGuise, nice to see you in here too. So you looking for another Enron that still has couple of years to fall flat?? haha yeah aren't we all. lol

Sirius stocks are really SEXY pick among young / middle aged men considering its price around $5 compare to XM which is $25+. I too own some sirius shares but XM signing Oprah was not a good thing. I really like Sirius's aggressive marketing strategy but I think these XM boys know what they are doing. So, having that said for now I wouldn't recommened you buying Sirius, especially you are just starting with a small fund. I am not saying big fund matters all that much either, so hopefully you didn't get the wrong message. In the long run satellite radio is the way to go, and there is no doubt about it but I don't think I have seen enough from Sirius enough yet to recommend. I have bought some before Oprah's signing but I wouldn't buy it today. Anyways, to cut the crap short, I will recommend something for you and it is a for sure hit and a great for first time investors starting with small size found. Nuance communications: if you read my uploaded bulletin, these guys were featured there as well. There were lot more featured but I really dig this one because of what they do. They are the pioneers and No. guys in voice activated technology and that is where I see future of technology going from pressing or pushing buttons. I bought it 2 months ago for 2 months ago for around $7 and they are already at $9+ right now. I am looking into selling one of my other and buying this as soon as the price comes to lower $9 range but its been going up all last week...so I might just have to buy it at the market price. So, even if you are investing $1,000 you can own about 100 share and thats a pretty good chunk for the long run. Here is the link, read and find more about it for yourself and for anyone else interested out there.....but hey I am recommending doesn't mean I am guaaranteeing :p

http://finance.yahoo.com/q?s=NUAN

Hukka dude, maile ahile kehi bujdina hai... bholi padchu hai :)

But know this, your every effort is appreciated.

Thanks.

IndisGuise:)

P.S: Mula. weekend ma pani k ko stock. Jaam takraune hoina bhanya? ;)

No problem IndisGuise bro...and you are very welcome.

and trust me man, once you start making some $$ week end week start doesn't matter :p j/k hai life ma moz pani garnu parcha no doubt abt it.

have a good weekend!!

La bro, it seems like you have made quite a "mulah"

Afno ta karmai khoto. Anyways, I am on my way and i promise to make it happen as well. :)

Good weekend mate!

IndisGuise:)