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4 Investment Tips from the Pros

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Whether you are a first time or seasoned investor, it is important that you have a continual desire to learn new investment tips and tricks. There are many people, organizations, and websites offering lessons and tips on investing, but the best advice you can get is from leading investors who have built impressive track records of success. Here are a number of investment tips from the top investors in the world.

Invest in Productive Assets

There are few people who have mastered the art of investing the way Warren Buffet has. The ultimate investment guru has this advice for anyone who is interested in investing: “always invest in productive assets”. While this advice is nothing new, it is one of the most important fundamentals of investing. Many investors allow their decisions to be influenced by sales pitches and marketing gimmicks. To be sure that your investment has the best chance of making money, you need to look at the product instead of the seller.

Be Tech Minded

Tech is the future of the world, and it should be one of your first considerations when you are deciding whether to invest in a company, according to successful entrepreneur Jason Sugarman. It is essential to pick a company that invests substantially in technology, so that your investment will not be at risk when a competitor adopts a new technology. Such a company is more likely to survive and succeed in the future.

Do Not Fall Into the Linear Thinking Trap

An example of linear thinking is expecting the market to perform equally well in the future if it is currently doing well. Many investors have the inclination to invest in the domestic market, which can be a mistake, according to DoubleLine Capital CEO, Jeffrey Gundlach. He encourages investors to consider expanding and diversifying into the global market.

Do Not Panic During Selloffs

It is quite common for selloffs to occur in the stock market. However, investors should not panic and join the frenzy when a selloff happens, advises Causeway Capital Management CEO Sarah Ketterer. Instead, you should buy stocks and shares with good potential. When the market recovers as it usually does, you will have more assets than those who joined the selloffs.

There is no sure way to avoid risk when you are investing. However, you can reduce your risk significantly if you know how to calculate your risk and make better informed decisions.

The modern investment questions that are most commonly asked

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There are scores of new articles around the private equity industry right now, and specifically how it is reacting to the economy.

There’s no doubt that this is one industry which has changed phenomenally over the years and investment strategies which may have been relevant ten years ago, no longer are.

In fact, on the most part, PE’s have a much different set of questions they ask when they are thinking about taking over a company. As the title of this guide may have suggested, we are now going to take a look at these to see how things have developed.

Is the company underperforming?

This question perhaps leads us onto the first change in the industry, and how the attitude to companies has changed. Previously, the approach might have always been to acquire companies at the top of their game, but the general consensus amongst industry experts is that this is now too expensive. In other words, valuations seem to be rising – and this doesn’t favour the old tactic.

Of course, there will be some exceptions to this rule. However, according to Marc Leder, this is one of the first questions he’ll ask himself when contemplating the acquisition of a company. This means that the valuation is kept respectable – and there is always the potential to not only grow profits, but to also inflate that valuation and turn an even bigger final profit later down the line.

Why is the company underperforming?

The previous question leads directly to this one – just why was the company underperforming? In truth, there are countless reasons why this might be the case, and many of them aren’t going to be significant enough to put a potential buyer off.

Examples of common reasons behind underperformance include a lack of investment or a misguided strategy. These two examples can both be resolved by a PE company stepping in and making changes, so it stands to reason that this turns a seemingly failing business into one that’s very attractive in the eyes of an investor.

Of course, these failings aren’t likely to be obvious – and this is what separates the savviest private equity investor from the ones that have low hit rates with their acquisitions.

Is there an existing management team in place?

This final question is one that might again raise a few eyebrows. Historically, a lot of private equity investors may have looked to bring their own team in – but nowadays this isn’t always the case.

An attractive proposition for investors is if a management team is already in place. This means that there is an existing team who know the business inside-out, and can therefore assist the PE team when they are looking to initiate change.

It’s a huge hindrance if investors have to come in and appoint their own management team, who then has to “learn the ropes” and understand how the business operates before they can make meaningful contributions.

Understanding Financial Spread Betting

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For a long time now, the financial market is, and still remains a means for hypothetical profits. One way through which speculators seek to make enormous profits within a short period in the financial market is Financial Spread Betting. The cons of speculations are that they mostly end up in risks.

Unlike old-fashioned investing, Financial Spread Betting is one way of betting, though it is not dependent on the outcome of a particular event. You can minimize the losses by closing the bet and withdrawing the profits any time. This product is a margined derivative where you place a bet on the price changes in both CMC Markets and products like currencies, indices, bonds and stocks. The market movements guide you on how to invest appropriately.

The importance of a spread in Financial Spread Betting

A brokerage firm quotes different buying and selling prices. The buying price for a stock is called the bid price, whereas the selling price for a stock is the asking price. A spread is therefore the difference between the two prices; it is the charge paid to the broker.

Placing a bet on a financial spread

There is no limit on the amount that an investor can bet on a financial security. You can start with £10 per point. If you feel that the FTSE is likely to increase, any bet that you place translates to a profit or loss of £10. An increase of 20 points therefore, translates to 20-point movement in your favor and a profit of £200. For both the market price and investor to benefit, the market must move away from the asking or bid price based on the predicted direction.

Pros and cons of financial spread betting

This form of betting comes with benefits as well as risks. Benefits include access to wide range of markets, minimal barriers to entry, freedom to take either long or short positions, and tax-free profits in some jurisdictions. It is lucrative because one can make massive profits with little investment. The margin requirements for some currency pairs and indices may be lower, and there are no commissions to be paid. Betting is not treated as an investment; hence its profits are not subject to stamp duty or capital gains taxes. There are some instances where profits are not taxed if the investor does not solely draw his/her livelihood from this practice.

Financial Spread Betting Strategies

Strategies are very crucial when betting or investing as they cushion you from making more losses. Likewise, before engaging in financial spread betting, it is imperative to observe the market trends and adopt a befitting strategy. The most common strategies include range trading, news trading, breakout trading and trend trading.

Trend following

This is the most common strategy employed by traders, especially those who are new in the game. It entails studying the momentum of the security to predict its trend as well as the entry optimal points. Higher highs and higher lows on charts are indicative of an upward trend in prices. Most traders thus assume a position. In contrast, lower highs and lower lows indicate downward trends and a short position are assumed by most traders.

Reversal trading

Identifying areas with over-extended or reversible trends is part of the strategy in contrarian trading. It requires one to assume a short position when a resistance level is reached and an upward trend starts reversing, and assuming a long position a support level is reached and a downward trend starts reversing.

Range trading

Here, both the support and resistance levels are identified and long and short positions taken respectively. This strategy is best suited for new traders. This makes it easier to place stop-loss orders above support or resistance levels.

News trading

Unlike other strategies, this one does not depend on technical analysis. It relies on the interpretation of news and financial results, economic policy, macro-economic data and other releases. One stands to make enormous profits since the data releases and other headlines influence the price activity.

Breakout trading

This strategy hinges on the expectation that prices will extend higher or lower if the trends are upwards or downwards. It is an alternative to the other strategies mentioned above.

How to Receive the Best Price for Your Property

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Encouraging buyers to walk through the door of your home can sometimes feel like an uphill challenge, and it may feel even harder to receive the right offer. Read our helpful tips on how to receive the best price for your property.


  1. Research the Property Market

It’s important you have a firm grasp of the property market, so you understand your property’s worth. Review the most recent sale prices of similar homes in your neighborhood within the last 30 to 60 days, as well as how long they were on the market. Also, aim to discover whether the properties were sold for the initial asking price.


  1. Price the Property Well

Every homeowner wants to receive as much money as possible for their property. Unfortunately, many people make the mistake of listing their homes that exceed comparable housing prices. While others may start with a high price and work their way down.

Both strategies can backfire, as home hunters will also have a budget in mind and the price could result in them ruling out your home. A property will become stale the longer it remains on the market, and it can be very hard to attract buyers once this happens. Aim to accurately price the property so you receive the best price at a faster rate.


  1. Find the Right Realtor

Aim to find a real estate agent who will take the time to learn about your property, which will complement their extensive knowledge of your neighborhood. For instance, John Mikesh aims to make the process as stress-free as possible, as not only will he help you receive the best price for your property, but he will take care of all the legal work, too.


  1. Home Staging

Little changes can make a big difference to your property. From a well-tamed garden to neutral walls, create a space that offers a great first impression. Add mirrors into small rooms to elongate a smaller space, or upgrade fittings to provide a room with the wow factor. It could result in a prospective buyer making an offer on the spot.

However, don’t embark on any major renovations that will add little value to your home. Focus on smaller changes that can make a big difference to your property such as a fresh coat of paint, depersonalizing your accessories and removing any quirky artwork that may not be to a buyer’s taste.


  1. Set an Offer Deadline

If your home is competitively priced, it might be beneficial to set an offer deadline to potential buyers. Encourage them to make an offer within the first two weeks of the home entering the real estate market, and launch an open house immediately. This could help you receive multiple offers for a quick sale.


  1. High-Quality Photos

Choose your photos wisely when listing your home on a real estate website, as you will want as many people to view the property as possible. Only advertise high-quality photos that showcase your home’s best features and don’t include any problem areas on the listing.