Business and Finance Analysis

Author Archive

Investment model 4 – Create Value

One of the activities or hobbies that I always had in my life was drawing.

I remember as a kid and I was at school into cartoon or comics that after many I ended up buying. While not the style of Marvel comics, my friends wanted them and that caused a lot of grace and had the courage to be unique.

At this point in my life I realized there are few professions or activities in life which we can create value. Precisely this was what I did, took some sheets, pencils and began to draw (Register value)

So the latest model of investment that I will discuss will be to create value, but from the standpoint of the investor, since if we work and create value, we are not investing.

* How does this model?

Its operation is very simple, has a low level of risk and it is two or more parties together to create value and make a profit there. These parties may be individuals or different resources to fulfill the same purpose. Read the rest of this entry »

Investment Model 3 – Retain value

So far I comment on two investment models that can be used at any time, they are “the price” and “seed capital.” Today I shall discuss another model called the “hold value.”

If you look at the photo that I added today can distinguish the surname of a player known “Messi.” If you are not aware of who is this guy, tell him your story summary:

“This young man began to show football skills when he was 5 years. After being in Newells how in River, ended up playing for FC Barcelona at age 17, becoming the youngest player in the history of FC Barcelona”

Very brief, but goes straight to the point of what I want to make, the model of “Hold Value”:

* How does this model?

It is very simple, perhaps at first not realize the potential you have and can not find any way to retain value, but must bear in mind the possibility. This model operates under the idea of retaining anything that we can generate a value later. Read the rest of this entry »

Investment model 2 – Buy cheap sell high

In the previous topic I commented on the first investment model we can use. This was the “price” and basically trying to follow the technique of “buy low, sell high” and are getting good prices by chance, or simply search through our contact network.

But now we’ll see the model of the “seed”, and how it works. Obviously this model of investment is very different from before, but if you know how to use his techniques, you will generate better returns than using the previous model.

How does this model?

This model is used when you want to help by providing a quantity of capital, an entrepreneur in his project for a launch how to improve the activity being performed. In this case we have a difficulty that is the “risk” because if the project is not launching, we do not know if they really work or not.

What about strategies for entry and exit?

In this case the problem is not the front, and we can negotiate or to generate a way to get into the business that is truly effective in achieving our objectives. Read the rest of this entry »

Due to a problem in Blogger with accents in titles, two of the old main blog entries were left without the correct link, the strange thing is that for some time came. These entries are those of the investment models are 4.

In truth the problem lies in the model 1 and 4. The solution is to put in the URL address “N” at the end of the word “INVESTMENT” so that it is “Inversin.” The other and more convenient solution was to create the post again to have the four models together and print them all in one step if you want.

Then the explanation of each model.

An investment model – the price

In the previous topic I commented on the entry and exit strategies which we have to at the time of investment. In this issue I will discuss one way (or models) of investment we have in mind to grasp opportunities.

This model is the famous system of buying cheap to sell to a higher. Many people do this activity for example, those going to stores that sell products on a wholesale, then sell. I can buy a soda at a store, but surely if I buy a whole pack to get a better price.

* How does this system?

It’s basically what I mentioned above, “buy low to sell more expensive.” But obviously we need to consider strategies for entry and exit in this process and we will see why. As I mentioned earlier we won at the entrance and the exit. Read the rest of this entry »

1. Merge all your debts into one: Suppose you have five different things, the home mortgage, car loan, personal loan and some money on two credit cards, you need to be aware of each of those debts and pay 5 bills each month.

With debt consolidation your debts will be consolidated into five one, thus need to pay only one bill each month, making it easier to plan and budget your expenses.

2. Reducing the average interest rate on the total amount: With five different debts, the highest interest rate can be up to 18% and the lowest interest rate may be 3.5%.

After consolidation, the consolidated debt may have an interest rate of only 3.5%, so your average interest rate is significantly reduced and therefore your overall debt and you have to pay each month.

3. The debt consolidation loans can reduce the total amount of money you pay monthly, that is, after consolidation you pay less money in the single monthly payment than you pay now by adding all your monthly payments.

Try to avoid loans that ask you to pay very high monthly amounts or promise you a very large reduction in your debt, they are very risky.

* The consultant will consolidate all your debts into one payment, so you avoid having to deal with several creditors.

* The counselor will talk to you to know what your budget and prepare a plan to pay your consolidated debt according to your means.

Many debt consolidation companies offer free professional advice.

Fraud Debt Consolidation

Due to increasing debt in Spain has been experiencing rapid growth of businesses dedicated to debt consolidation, so be careful if you’re going to hire one of these companies to consolidate your debts.

Definition of debt consolidation: Debt consolidation involves obtaining a loan to pay other loans or credits (credit card, etc). With debt consolidation you can pay several debts into one monthly payment. Debt consolidation is only one solution for reducing your debt.

What is the purpose of debt consolidation?

The main objective is to get a lower interest loan with lower monthly payments without risking your property.

The debt consolidation loans are useful for people with high interest on your debts and the costs they pay the bills each month.

If you are not qualified for a consolidation of your debt yourself, you can hire a specialized company.
Sometimes it is very difficult to pay all our bills.

The Temptations make it easy to get into debt, but may not be as easy to leave them, and when more than one creditor, the situation can be quite overwhelming. One of the possible solutions to this situation is debt consolidation.

There are times when you yourself can do the consolidation, for example, when you can negotiate a lower interest rate for transferring credit card and other debts to this card from other cards with higher interest (watch out for transfer fees .) But other situations are more complicated and for which you may not feel qualified.

* If you are not qualified to do it yourself, you can hire a debt consolidation company.

* A coach will analyze your financial situation: number of unsecured loans (like credit card debt), number of guaranteed loans (mortgages, car loans), total amount of debt, interest rates, etc.

* The counselor will negotiate with your creditors to try to slow the amount of your debt.

The money we have, according to the author, is a partnership between a country and the banking system. The money seen from the physical is only a trade, you change an impression on a paper about something you want, that you want to have a value and that value is reflected in this piece of paper. All speaking in very simple language. But the money never really ours. Then extract the text of the book.

“The money never really belongs to us, as we own eyes and hands, or the car and the house – when we finish paying them. “Our” money is like “our” marriage per se, the agreement involves another person (husband or wife). The modern money is also an agreement between two parties. It is only an asset for us because at the same time is a passive pair someone. ”

I hope that at this point to feel concerned about it. In the next post we’ll see a bit of history of money, but only the fun part, like to really know how banks were established, economic systems and money.

By the way I invite you to become curious and eager to keep the next installment in the following years.

1) Walk through your city and see the banks, especially the older ones. What do you look these big banks? Do not see modern banks, see beyond the size, go directly to their structure and architecture. If you are in Argentina go to the National Bank which I think is on the corner of Avenida Santa Fe 2100. If I remember it was shaped like a “temple.” Perhaps banks have to do with the temples.

Read the rest of this entry »

You know, really, what is money? Do you know how to create the same?

Surely many may have a vague idea, but will feel really amazed at the complexity of the issue. At the time I also did a little definition or answer to those questions throughout the book I realized it really was a total ignorant about what I thought I knew.

With this last expression I leave a short “snack” on the money, I mentioned the concept of “thought he knew” and there precisely lies one of the main problems of money paradoxical.

The money is “a belief based on another belief” that simple piece of paper or coins is simply a belief on our part that we believe that for others is important. I propose a short exercise to better understand what I just mentioned:

Suppose you because of a plane crash ends up as a castaway in the middle of a desert island. Already for a few days began to despair, is just that even Wilson (friend of the famous ball in Tom Hanks movie “Cast Away) can help. Suddenly the water floating currency in two suitcases that happen to be yours.

Read the rest of this entry »

A few days ago I wanted to comment on the book I’m reading now, but the times I have been quite complicated. Fortunately and apparently troubled times and have somewhat subsided.

The book that I read today in my free time is called “The Future of Money” and the author of it is Bernard Lietaer. In this post I will talk a little about it and expose details that so far I found extremely interesting, especially the little stories or comments that are in between.

In itself the book had a major effect on me. I remember being in a bookstore looking for something interesting to read and I found it. Usually books qualify for the description of its back and even through a brief introduction, but I must stress that this is the first book from the prologue where I’ve been attracted to keep reading.

Above all it shows in small events as mentioned earlier various crises that have happened in the world and highlights the case of Argentina as one of the pioneers in this series of crises to come.

The book itself says three promises that are really interesting:

1) We understand the true role of money in a clear and simple language that anyone can understand.

2) We may answer questions such as why we have increasingly less time and money? Why are people obsessed with money? Why is increasing the global currency turbulence? Why scarce productive work? Among many others.

3) discover that there is another way to deal with the global economy and where each of us can take part (and we should be) for it.

Read the rest of this entry »