Warren Buffett once said, “it is not necessary to do extraordinary things to get extraordinary results.” When it comes to finding stocks worth investing in, we simply need to ask the right questions.
We share 3 of these questions with you, and 3 financial ratios that can help answer your questions.
What if you don’t have a stock in mind? After all, there are over 9,000 stocks on the Singapore Exchange (SGX), New York Stock Exchange (NYSE), NASDAQ and Hong Kong Stock Exchange (HKex) alone and brokers like us offer access to many more markets including Thailand, China, Indonesia, Malaysia and the Philippines.
There are tools out there that can help you identify stocks using ratios like the ones above. Click here to learn how stock screeners can help you identify trading opportunities.
The best cinematic art illustrates human conditions and life in general. One type of cinematic art called “documentary”, imitates life and factual records as close as possible.
Enjoy at least two of these wonderfully made films especially if you are taking up finance and economics as a subject at school or as a career. These documentaries will not only help you understand the history of money but also the humanistic system that revolves around it.
1. FOUR HORSEMEN
Four Horsemen is one of my favorite documentaries of all time. It is controversial and eye-opening. An award-winning film by Ross Ashcroft, Four Horsemen criticizes the system of debt-based economy, fractional reserve banking, and political lobbying by banks. Join Joseph Stiglitz, Noam Chomsky, and 21 leading thinkers as they discuss how the world works and how to solve the failed systems at present time.
They travel through the centuries and examine the systems that shaped empires. These systems manipulated and even corrupted the minds of the many to serve the interests of the few. Learn more about these said systems by watching the full-length documentary, here.
2. THE FALL OF LEHMAN BROTHERS
Sometimes, we learn the most by observing and avoiding the mistakes of others. What better way to learn than by watching “The Fall of Lehman Brothers” – a firm that filed the largest bankruptcy in the United States history.
On September 15, 2008, financial services firm called the Lehman Brothers filed for Chapter 11 bankruptcy protection with Lehman holding over US$600 (S$834) billion in assets. The following day, Barclays bank announced its agreement to purchase Lehman’s North American investment-banking and trading divisions along with its New York headquarters building. Watch as these events unfold in the full-length documentary, here.
3. 25 MILLION POUNDS
Like most of the people, Nick Leeson wanted to be affluent and successful and he had extraordinary abilities of manipulation and deceit to back it up. This documentary tackles how he deceived the people around him and how these people were deceived. Lured by the possibilities of getting vast sums of money, these people lost 830 million pounds all together. This true story was so powerful that filmmakers were inspired to make an adaptation called “Rogue Trader”, which starred Ewan McGregor.
On this list, “The Ascent of Money” is the one that deeply touches the base of the world’s financial history. It will give finance professionals a greater understanding and perspective of how the financial world works. Watch as Professor Niall Furguson takes you to the beginning of the financial world from the ancient city of Babylon to the new-age financial crisis in 2008.
Be forewarned that this film lasts for 300 minutes so, you must dedicate time or chunks of it if you really want to absorb its essence.
Image Credits: pixabay.com (License: CC0 Public Domain)
If you are a student of Business and Finance, you must analyze books and films that portray salesmen, corporate consultants, traders, investors, bosses, and consumers at certain circumstances. And if you are a consumer, you must be aware of the sales tactics you must avoid. Films will not only help you to understand the dynamics of money but it will also help you empathize with the characters.
Beyond the infamous film called “Wolf of Wall Street”, here are the Best Finance, Trading, and Business Movies showcased from 1987 to present…
1. UP IN THE AIR (2009)
Ryan Bingham (acted by George Clooney), a corporate consultant, is used to life travelled in a fast lane. With his job comes the responsibility of firing employees for the companies who are not equipped to do so. His go to accessory? A handy luggage to bring all over the world because he never stops moving…until he met a fellow passenger named Alex.
In this movie you will see how the corporate culture is shown as the colleagues socializes with each other and how some people spend more time in the hotels than their own homes.
The original Wall Street film was released on 1987. This starred Michael Douglas and Charlie Sheen. It centers on a young, desperate, and impatient stockbroker who is willing to do anything just to reach the peak. Embodying the true form of greed to the point that he is willing to give up his integrity for power. Some strong dialogues from the film include: “Greed, for lack of a better word, is good. Greed is right. Greed works.”
The impact of this film served as a standard for other finance-related movies that came after.
An Indie film that garnered lots of high praise at the Sundance Festival, Margin Call, shows the effect of a million-dollar venture gone badly in the period of the Great Recession. In a span of one day, it follows the employees of the investment bank as they resolve the financial crisis at hand. Interestingly, it is inspired by true events.
Packed with talented actors such as Kevin Spacey, Zachary Quinto, Simon Baker, and Demi Moore, it will keep you on the edge of your seat as the tension elevates every minute.
If you are a fan of true events then, kicking up realism up a notch is a documentary film about the pioneering venture capitalists and the companies they helped to emerge. This Indie documentary film is called: “Something Ventured”.
With its first-person view, you will know what it takes to be the risk takers for the top companies such as Apple, Cisco, Intel, Genentech, Atari, and Tandem.
Picture a curve going up. This is your lifetime money curve. Every decision you make affects the direction of your curve. For example, once you earn money from your first job then, the money curve will go up higher. But living in reality, your money curve are exposed in certain financial pressures such as taxes and bank fees, which, will push the money curve direction down. The good news is that, with a strategic plan that evaluates the potential pressures, you can survive or prevent the downward money curve. This strategic plan is called a Financial Plan.
Financial planning is an important process that draws out your monetary future. It is a process of managing your finances and knowing where you want to go. Here are 5 pointers to guide you…
1. INFORMATION GATHERING
In order to manage your finances, the first step is to gather all the important documents (e.g., bank statements, insurance policies, and investment accounts) and financial information. Organize these records by using a folders or filing accessories that will cost less than S$5 at Popular Bookstore or Daiso.
2. EVALUATING
After you gathered all the essential information, you must evaluate all the areas of your financial life including long-term savings (e.g., retirement and college fund), short-term savings (e.g., payment for bills and emergency fund), key documents (e.g., durable power of attorney and will) and insurance (e.g., life and car insurance). Calculating your net worth is also in this step.
3. SETTING GOALS
Following evaluation is goal setting. It involves two things: identifying your goals and knowing what resources you need. Identifying your financial goals both short-term (e.g., staycation in Bali) and long-term (e.g., retirement at 50s) is vital to knowing what your next plan of action will be. After plotting your goals, you must know the resources you will need to achieve them.
4. TAKING ACTION
Since your goals are set, your next plan of action is to decide whether you shall do it on your own or to hire a professional financial advisor. The personal actions you can take may include purchasing life insurance, creating a will, and setting a side money for your retirement. While, hiring a professional can help you reach your objectives in the midst of time your constraints.
5. MONITORING
The last step is monitoring. Monitoring involves tracking your progress and altering your goals based on the reevaluation of your current economic situation.
Image Credits: carlocanyougo.tumblr.com
With a systematic and a holistic Financial Plan, may your money curve take a flight…leading you to success! 🙂
It’s not easy starting a new family. While you might be busy dreaming about the warm and fuzzy moments you’re going to have in the future with your spouse and your children, there are some pressing financial issues you would need to face right now. How are you going to use your money wisely on a daily basis? How are you going to safeguard your family future? Don’t fret, we’ve brought to you a few tips, so you can better manage your family finances
Keep Your New Expenses In Mind
Maybe you’ve thought of getting that new TV you’ve been eyeing for a while. Maybe you’ve saved just the amount of money needed to get that massage chair that’s always been at the back of your head. Well, did you take into account all the new expenses you’re going to have to pay for, now that you’re starting a family?
You’re no longer just earning for two, you’re going to have to provide for three, or more (if you struck the twins or triplets lottery). There’s plenty of child related expenses you’re going to have to take note of, such as baby food, diapers and immunisations. It’s best if you lay out all the expenses you would need to care for your baby, so you know for sure what you’re getting into, and to allow you to better budget for the future.
Set Up A Savings Plan
If you hadn’t already done so, you should set up a savings plan so you can better provide for your child’s future. Savings plans are more easily set up compared to investments or bonds. The basic idea is a simple automatic, monthly deduction of funds which will go into a special account, which can only be accessed once your child reaches a certain age. It might be hard to consistently set aside money on your accord, which is why a savings plan would be great as you don’t even have to think about it once you set it up. The “pain” of having less income per month isn’t felt so strongly this way.
Get Life Insurance and Medical Insurance
You always need to be prepared for the unexpected. Insurance acts as a safety net, so you and your family can be protected should anything happen to any one of you. Medical insurance is important as there are many medical issues which your child or any family might face which would require a hefty bill. The presence of a medical insurance plan would help you cover these expenses should the need arise.
Although many modern families are dual-income families, this does not mean the early demise of you or your spouse would not result in a heavy financial burden on your family. Life insurance helps your family deal with the financial needs that would be definitely be harder to attend to with the absence of you or your spouse.
Teach Your Child Good Financial Habits
Financial habits are ingrained from a young age, so make sure your child adopts the right habits that will put him in good stead for a financially stable future. Managing family finances is a team effort which involves every single member of the family, including your children. Little things such as not buying toys they don’t need, turning off the lights, and putting aside a small sum of money each day help your family make better use of your finances.
