InvestingInspiration

A sneak peek at the new ABC website

Joanne Falvey — Sat, 04 Sep 2010 11:26:01 +0000

Just a quick mention my favorite place to buy precious metals in Sydney is has revamped their website and looks like it’s going to be a great place for resources next week.
If you live in Australia and wondering about precious metal prices (if you have noticed that the news spot prices are often wrong) The old site Australian Bullion Company you can get the daily price sheet send to your email very convenient.

Three things worth looking out for:

- Bullion university (to be honest I wouldn’t have a clue what this is but sounds good and hopefully will be good free education)
- Free Storage, others places are charging a % surcharge based on your volume and how long they hold, free is definitely for me.
- Great further educational resources: relevant videos, market analysis,

Check it out for yourself http://www.abcbullion.com.au

It’s officially launching next week so not all information is up yet, stay tuned….

Why Bridging Loan are my new benchmark for investments!

Joanne Falvey — Wed, 01 Sep 2010 06:02:03 +0000

After receiving two lots of interest for my $15,000 bridging loan payments of $410 australian a month, I realized this is just so easy.
Compared to my investment property there is no property manager fees, no property maintenance, no rates, no water, no vacancy.
The money just comes into your account. Cold hard cash to do with it what you will, I had had to borrow $8,000 to do the deal my monthly repayment on that is $213 ($95 of that is interest).

This is what has become my new standard to compare investments against I definitely want to buy more silver and even start to buy gold. But if I can get a few more bridging loan deals I could use a percentage of the money I get paid as interest to buy the gold and silver rather than buying the precious metals out of my own savings. let the interest

escher image

I love the idea of investments making more money in which to invest again and again and again almost like a M.C.Escher drawing the mathematical prints and impossible structures, rather than seeing investing as a cut and dry buy this and sell this I love the idea of investments taking on a life of their own and growing in all sorts of directions.
And if your not into the creating a self-building investment monster, you could use bridging loan interest to provide a nice steady income source.

I am definitely on the look out for another one or two…….

The Importance of Investing Buddies

Joanne Falvey — Mon, 16 Aug 2010 10:34:13 +0000

This really didn’t hit me till I was in too deep a deal, and had nobody to talk to about it. My normal friends didn’t understand the big deal (in fact they didn’t know why i was bothering) and

By nature I think I’m like a lot of people where I turned to my friends and in particular my family, willing them to be as excited about investing as me.

The easiest way is to not try to turn your friends into investment excited people, and go FIND OTHER people who ENJOY investing, their is all kinds of ways, forums, conferences, (or like in I Love You Man at house openings) a friends might talk about someone they know who knows someone who invests – ask to meet them. This can be getting out of your comfort zone, which is good you don’t want to just talk to anyone about it.
Ideally they don’t just talk about it, they do it. It’s about enjoying the process, they research, prepare for the obstacles, and the processing the outcome, whether it’s good or bad.

Charactistics to look for in a investing buddy:
prerequisite: encouraging, open, curious
desirable: a damn good sense of humour, apprecaitive, supportive they might not agree with you they will listen and discuss.
They may have very different views to you politically, interests, follow different supporting teams, that’s fine they are their own people you don’t need them to be idenitical to you, in fact that would be a hinderence if you are needing some help getting some prepective on a investment.
An example of two successful Investing Buddies are Warren Buffett and Charlie Munger, both chairman of Berkshire Hathaway, they both anaylsis business to invest in. But unlike the guys who founded google or microsoft they are investors more than business owners. they both have very different styles, make tongue in cheek comments about each other investing style at the annual shareholder meetings.

Finding investing buddies, a sense of community is the absolute main reason I set up investing inspiration. I unshameably love talking, and more importantly love hearing others talking about thier investments. Deals, dreams and ideas all of it.

Want to start investing with $100 a month?

Joanne Falvey — Mon, 26 Jul 2010 12:17:40 +0000

With all this talk of eliteism you could mistake that it’s hard or expensive to get iinto investing, in fact it’s the opposite, it’s easier than getting a credit card!
Here are afew different types of investments you can sink your teeth into straight away

- Share Builder for buying on the US stock exchanges. your $4USD a trade, you can invest for around $100 a month in shares. Great for the novice, lots of well known blue chip stock.

- Buying an ounce or five ounces of silver ranging between $17-18USD a spot price means it the most affordable shiniest, highest conducting metal you can buy. You can pick up the very attractive Silver Eagle here they now deliver to several countries now including Australia, and there is a promo at the moment with them I have sent up where if you enter 1050GOSILVER coupon code you get a discount. Now if you are in Australia, I buy from the Australian Bullion company they are a great price for kilo bars and I don’t have to pay for postage as there in sydney CBD and the next order silver I’ll be doing I will be doing a large amount at once, and lots of one ounces coins or small bars so will be trying out Bullion Bourse.
- Gold is you have between $100- $350 to invest Gold is a great option, 1 to 5 Grams of gold. Just researching this opened my eyes as I was so stuck on gold bring over $1100 an ounce. I can buy still buy gold at smaller more manageable amounts.

- Now Rich Dad writer Robert Kiyosaki bags Mutual Funds “If you live long enough one will start think of mutual funds as a ponzi scheme” , yes I understand there are fees and you have no control over your money. But as a novice wanting to learn the part a little in investing saving habit, and to watch the market as when to sell, and to hold them for 5 years or older. They can be a good way to ease into the market, when I was studying to be an accountant and unable to spend any time researching I put $1000 into a mutual fund and $100 a month for a year. I didn’t check on it for over 2 years, until 2007. it had grown to over $5500, now had time to research.

- The High Risk small investment plan – Penny Stocks, these are shares so low (the the rest of the market either hasn’t recogize them, or could be a very new company, etc. therefore considered risky. (Look up definition of a penny stock here), it’s basically a stock that is priced at less than $1 a share. The less the cost, the more you can buy, and the more gain if it goes up, a penny stock can double in a week, while it would be extrodinary for Google shares to double in a week. Penny stocks can also half just as easily.How do you lessen the risk? knowledge, either fundamental anaylsis of the company or technical knowledge of reading a share price chart.

- You could invest in the Foriegn Currency Exchange: the exciting world of investing in global currencies. Making money through buying and selling currenies? sounds exotic doesn’t it? now this two ways you can approuch this the fundmanetal assess of a countries economy versus other ecomonoies, or like penny sticks you could chart the activity to invest. THere are lots of companies that can facilatate the buying and selling, some even have demo (details here of practise paper trading). I am not familar with this type of investing personally,

The greatest thing about investing small amounts is you can develop the can develop the habit of investing regularly, whilie learning to make calculated risk.

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Consume your way to misery

Joanne Falvey — Sat, 24 Jul 2010 11:16:11 +0000

There is a lot of tragic events and problems you can’t control or stop from happening. Consuming your way to misery is not one of them. Consuming your way to misery is the habitual collecting of stuff to create a so-called identity. The stuff itself never fills this insatiable bottomless pit inside, s they keep on shopping to happiness.

It would be funny if it wasn’t so common, people buying stuff based on automatic pilot knee-jerk spending.

Crap people buy to consume their way to misery
- They need to own DVD’s (even films they are only going to watch once, they seem to have to own every movie they ever see)
- They replace things that work fine
- They replace things they only need a minor fix
- They shop for stuff beyond food every week
- They go to the movies several times a week (and aren’t reviewers)
- Buy coffees out all the time (or any beverage)
- Use taxis when they could have walked or waited another 3 minutes for bus (or more importantly could have been more organized and gotten their a few minutes earlier)
- Eat out; even when they don’t want to, it’s habitual. Food they don’t want but are used to.
- Buy all books they just want to read once (I understand the want to do this, but you can’t own all the books you want to read that what libraries and friends are for)
- They go out with no idea of budget
- They have no way or have not built up the skills to think twice before buying anything just I want therefore I need.
- Second hand is something they scoff at all levels, after all they are worth more than that, and they are the buyers.
- They believe by buying a new car will mean they are finally looking after themselves.
I am sure they’re other things people buy to consume themselves to misery, I just can’t think of them.

Consume your way to misery would make a country song or sad tragic film, just replace drug use for consumerism and you get the sad tragic victimy end to the person.

What’s wrong with it? This is normal, what’s wrong with it, is opportunity cost, Except those people consuming their way to misery not only forgo one alternative their constant crap habit, means they never even get to make the decision. They buy, often get in debt, or at best have something small, but unfortunately nothing of substance, they forgoing precious experiences and important life-changing decisions to habitually shopping.

They will totally and utterly hate this article. Way to close to home. They will think I’m cheap and no fun. But you need to question your idea of fun. If spending is the only way to get that good warm feeling of satisfaction, something is very wrong.

The Beauty of Bridging Finance

Joanne Falvey — Mon, 19 Jul 2010 12:21:29 +0000

This is my favourite form of investment for 2010, in particular my favourite way to be involved in property investing, ahhh to be the lender.

What is a bridging loan?
A short-term loan, usually at a higher rate of interest taken out by people who have bought a house (or can be used for a venture capital, investment project, short term business loans) while waiting for theirs to be sold, or when a normal mortgage and their savings fall below the asking price.
Or in the case of short-term business loans an example would be an import company needing extra cash to bring in a shipment. They will have the money in two months once supplies sold, but it’s time critical they have the money now.

The Pro’s and Con’s of Bridging loans
Pro’s
-Normally a very good interest rate 2-4% a month (I have heard of building/business loans as high as 6% a month)
- If done properly should be secured to a property, and an airtight legal contract.
- An investment for a clear time period (can be extended if you like, but normally for 60-90days).
Con’s
- Normally need to have over $100,000+ cash to be involved in a bridging loan.
- Need to organize money fast, within 48-72 hours, you miss the opportunity if you can’t the money fast.
- These are people that can’t get bank loans, let’s not fool ourselves there is risk, this is way important to have the legal contract and secured to a properly. Bottom line worst-case scenario, if they fail to pay, ensure a secured contract so a court will recognize, and ensure repayment of the loan.
- Hard to access these investments in Australian often you need to be defined by ASIC as a Sophisticated Investors under ASIC’s 6.2D rule, check out the different ways they define a Sophisticated Investor: www.asic.gov.au

How any body can offer a bridging loan now
You can offer and proactively set up bridging loans, at the back of newspapers in the classified section in business section, there is builder/construction project looking for finance. Everyday people around Australia are making contact with the next, negotiating an interest rate and out come the property secured contract with their lawyer.
Definitely not an investment to take for granted in this current financial climate. It’s nice cash generating asset class that is the focus of my portfolio this year. Now if I can just get more cash to make it happen, this is my focus at the moment investing with others in bridging loans with rates from 24-36% a year, how do I get my hands on $10,000-30,000 bi-yearly ideally quarterly.
So far I have one bridging loan $15,000 at 36% set up in June (terms are for 60-90days, I have asked it be rolled on further for the period of a year if possible). I want at least one more this year. I am brainstorming how to be resourceful on getting the money beyond my normal strategy of just aggressively saving.
If you are interested in bridging finance, I recommended doing a lot of research to see if it suits you, and you must involve a lawyer in the creation and implementing of a contract.

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Couples got a plan, better than the A-team according to Frugal Jo

Joanne Falvey — Fri, 16 Jul 2010 03:55:54 +0000

1st the couple that inspired this, recycling cars to the alter read more about them here Other ways of how to save at weddings: 1. Food = catering hands down has to be the most expensive thing at wedding, often people ask one question to establish the cost of a wedding "how much per head at the reception?" well there are three ways you can deal with this probably the most tasteful way is to see if you have a chef/caterer in your friend group/family who may offer mates rates, my younger sister was able to have a reception at a family friend restaurant pub for $10 a head for three course meal. Find someone you know who has a restaurant! If you really want to take it to the next level of cheap, Pot Luck reception, the guests bring the food cost almost zero per head. 2. Where do you get married - there is traditional location religious centers etc. But if you want to save get married in the middle of no where find some where beautiful people can get to, somewhere your married celebrant is willing to get to. Cost can be zero, 3. Wedding register - really put some thought about what you need and have a real range of presents and be open to gift vouchers, I have seen people have mostly presents $500 and up not really catering to the ring-in, and work friends. 4. Clothes is the one thing I don't really want to comment on, if you have a very fixed idea of what you want to wear, go for it no matter what price. But if you want to be incredibly practical then why not buy something you can wear again for other occasions. Other one that's important is photography, yes you could ask your friends to bring a camera, but it can be a bit risky I have seen many bad, or so-so wedding photo’s that was a shame, maybe an area to splurge on unless you have a very talented friend who is a wedding photographer. AND have a clear time for photo’s so the photographer has a clear time to capture the day.



Exciting Float to take a look at – Valemus
Joanne Falvey — Mon, 28 Jun 2010 10:31:42 +0000
Heard of Valemus? No, me neither.  But if you live in Australia or ever seen a image of Australia you would have seen there work, they have delivered some of Australia’s most iconic infrastructure projects, including the Sydney Opera House, the Anzac Bridge and the M2 and M5, just to name a few. Been around since. 1926 Valemus Limited, formerly known as Bilfinger Berger Australia, They are the parent company of Abigroup and Baulderstone, and in the Services industry through Conneq.

Though the Australian market isn’t as badly hit as Europe and US. It’s certainly not a growth market, it’s very shaky, not an optimal time to raise capital.

valemus ipo float


Important information if you are wanting to take part:

Closing date for retail investors: 2 July 2010

Minimum Investment Amount= $2000 (then multiples of $500)

Share price: $2.20 to $2.50

Downsized their profit margin for 2009 was less than 5%. And there are so many problems with projects of this magnitude.

Also they are vague as to what they are capital raising for beyond to pay back current business owners.  “Explore other growth projects “ – not that clear or inspiring.

How much are they are raising? 1.2-1.3 billion

Dividend: yes likely to be 4.5c, twice a year.

For value investor what is the worth of a single share banked by Valemus assets? Around 80c (therefore probably not the investment for you)

I’ll definitely be keeping an eye on it, as it will be interesting from a trade market reaction point of view.

Given the amount of work they do for the public sector, the shares will definitely be eaten up by the institutional launch that happens on the 6th of July, it’s predicted the institutions will bring up 90% of stock.

Personally based on my five year plan a share 
 for more info check out the prospectus: http://www.bbau.com.au/ 



 


5 Year Plan Explained Part I
Joanne Falvey — Tue, 22 Jun 2010 09:28:02 +0000
If you haven’t sat down and done a five year plan I totally recommend doing it. From a investing point of view it can change your view of investing.

 When you keep it vague, any investment that rears it head could be the right one, the one you can’t miss out on. There is hot feeling of desperation you don’t wait to miss out.

 There is a saying that success is not what you say yes to but what you say no to. Investing is about learning what at this point of time for the market and more importantly for your current position what do you need to say no to.

It’s incredible the how empowering it is to realize you can and you can relax in saying no.
Beginning the 5 year plan

Sure absolutely it’s with a end vision in mind, what you want to be, and see your your investment portfolio looking like in five years, and more importantly your life.

But once your beginning to get it down on paper, you have to be completely honest to yourself as to where your investments are now. If like me you realize you have a lot of buy  and hold investment that aren’t going to be transforming into cash generating anytime soon. Once it’s on paper, and I realized I was capital gains (kind of capital gain constipated, waiting for one of the investments any one to go up 1000%). This is not a sustainable investment plan. Much to my hoarding gene’s 
So what is the over-arching theme motivating you? for me it’s a five year plan that not only replace my own income with a active investment portfolio but my partners and our expanding family.

People could say what when you are starting a family you can’t worry about investing, everything blows out. Well I figure if i can’t do it now, 
Rules for the five years – as part of the just say no plan to investing I am working on some rules to keep, I get way too excited by the discovery of a new investment. (Think Mr. Squiggle and the rules are Ms. Jane)

- Reinvest all capital (principal)

- cash flow positive investments only

- a few speculative investments

-the money from bridging finance at least 60% goes back into bridging finance, the rest into property business/speculative assets
I’ll write more soon about this and post up the breakdown of my five year plan.

 


First investing inspirer
Joanne Falvey — Thu, 17 Jun 2010 12:55:39 +0000


An old man from a small New Zealand town on south island not even on the map. A man that would take an hour to get to the corner store (only 100meteres) cause he would have to talk to everyone along the way.

My grandad loved investing in shares he was consistent, always curious always passionate regardless of outcome. He was catching the bus to the investor meetings in his nineties,

He had class, I got into investing the very time a stock broker had run off with a substantial amount of his investment money (1987, Grandad had knew what was coming asked to sell, the fellow did then ran off to a exotic location with the money, it’s rumoured it was Perth) it would have been enough to buy a farm.

 He never mentioned it, he never talk negatively about share investing, and was always very encouraging. I only know this story cause my mum told me five years after he died. He just kept investing.

I think also he talked about investing with almost the same enthusiasm he talked about fishing (almost). He never, ever mentioned his job.
The golden rules I learn from Grandad:

1. It’s a lifelong journey, there is no end to investing no I’ll do it for 3 years, like your holding breath, nope it’s something you always do.

2. Investing like fishing, is fine and fun to do on your own, but ultimate when can do in a team environment and share the victories.

3. Insatiable love for learning, travelling and meeting people, once he hit seventy if people asked how old he was he just said twenty-one,

4. Never confirm, it’s just plain silly.