cement prices

Anatomy of a bad investment

Dated: 30 Apr 2011
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Categoiry: Stock Market, Uncategorized
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BAD investments or wrong investments are a part and parcel of any portfolio. Broadly speaking, there are two reasons why they happen.

One, of course, is market conditions. Say you invest in a share after due research, but the company fails and you lose money. Or you have a fixed deposit (FD) in a co-operative bank, which runs into problems and your money is stuck. Or you invest in a five-year FD and, immediately afterwards, the rates are revised upwards.

These situations are beyond your control. These are market risks which are part of any investment. You win some, you lose some!

The second reason has to do with your own decisions – your knowledge, your psychology, your research, etc. These factors are under your control. If you exercise this control diligently, you can keep away from bad or wrong investments.

The idea is not to get defensive but to understand the reason(s) and make sure you don’t repeat the mistakes. Here are the top five:

1. It’s greed, of course
Call it the get-rich-quick mentality, double-my-money-soon or maximum-returns-in-minimum-time. In one word, it is greed.

How many times have you invested in a scrip just because someone tips you that the investment would double soon? Or you wrote a cheque because someone offered high interest rates?

When someone talks about giving returns which are higher than the average market returns, he will not give it out of his pocket. He will take unduly high risks with your money or he simply has no intention of returning your money.

More often than not, you lose money in such so-called high-return schemes. The simple rule is to invest where the returns are more or less in line with market realities.

2. The fear of losing
I don’t like losing money. You don’t either. No one does. But does that mean you should sweep money under the carpet and not invest it?

Every investment has a certain risk associated with it. Okay, so you consider equity as risky, and public provident fund (PPF) as safe. You can’t be more wrong in this belief.

A few years ago, I invested in PPF assuming I would earn 12% pa returns for 15-years. But the government started reducing the rates. Now, it earns just 8%. If this isn’t interest-rate risk, what is?
Similarly, those who simply invested in the Sensex over the last 15 years never lost money. In fact, they made a decent 15% pa returns.

The idea is not to run away from risk. Understand it, appreciate it and manage it. This will help you make the right investment choices.

Visa Type

Dated: 30 Mar 2011
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IMMIGRANT VISAS (PERMANENT RESIDENCE OR “GREEN CARD”)

Immigrant visas grant permanent resident status (or a “Green Card”), which allows foreign nationals to permanently reside and work in the United States, as well as to travel in and out of the U.S. Generally, when an foreign national obtains a green card, his or her accompanying spouse (wife or husband) and unmarried children under age 21 also obtain green cards. Depending on the way in which permanent residence was obtained, after three to five years, a person with permanent resident status may apply for citizenship.

EMPLOYMENT-BASED VISAS

“Extraordinary” or “Exceptional” Ability Foreign nationals of exceptional or extraordinary ability in their particular field of work, outstanding professors or researchers, and members of professions holding an advanced degree may be eligible for an expedited green card process. This allows scientists, artists, physicians, university professors, researchers, musicians, etc., to obtain a green card with or without a sponsor. (See also, “O” Visa)

Alien (Employment) Labor Certification Based on unavailability of U.S. workers in the workforce, a U.S.employer may enable an alien to obtain a green card through an offer of employment. Upon approval by the Department of Labor, an immigrant petition may be filed demonstrating that the sponsor/petitioner has the ability to pay a certain prevailing wage.
Once these steps are completed, an applicant may proceed with the filing of a green card application as soon as his or her priority date becomes current.

Investor’s Visa
Qualified investors and their families may be eligible to enter the United States on this type of visa if they invest $500,000 to $1,000,000 in an existing or new business in the United States. On the basis of the business, investors may at a later time proceed with an application for permanent residence. (See also, “E” Visas)

Religious Worker
Religious ministers, priests and ordained religious persons may qualify for the green card through sponsorship by a congregation (e.g., Mosque, Church, Synagogue, etc.). (See also, “R” Visa)

Family-Based Sponsorship
United States citizens may sponsor spouses, parents, adult children and siblings (brothers or sisters) for permanent residence. Green Card holders can sponsor only spouses or unmarried children.

Diversity Visa Program
Through an annual “lottery” process, the United States randomly distributes 55,000 green cards to nationals of designated countries. Participants must have either 12 years (or more) of education or 2 years experience as a skilled worker. Winners’ spouses and children under 21 years of age also receive green cards.

NON-IMMIGRANT (TEMPORARY) VISAS

H-1B Visas
Under current laws, this work visa is valid for a maximum of six years and is generally very flexible. It allows changes of employer as well as simultaneous work for two (or more) employers, provided that each employer petitions for a separate H-1B visa. To qualify for an H-1B visa, a foreign national must have a U.S. bachelor’s degree or its equivalent, or substantial professional work experience. This visa category also requires an employer sponsor. Processing time varies from region to region, but is usually relatively quick (approximately four to six weeks). Recognized occupational groups for this visa category might include, for example: computer industry; mathematics & physical science; architectural engineering & surveying; medicine & health; life science; law & jurisprudence; commercial arts; education, museum, library & archival sciences; entertainment & recreation; administrative specialization’s; managers & officials; fashion models; etc.

TN Visas
This visa is very similar to the H-1B visa and is available only to Canadian and Mexican nationals. It is valid for one year and renewable indefinitely.

L-1 – Intra-Company Transferee Visas
Managers, executives or individuals with “highly-specialized knowledge” who are working for a company abroad may be transferred to that company’s U.S. branch or affiliate for a period of up to seven years. Non-immigrant status can be converted to a green card.

E-1/E-2 – Treaty Trader/Treaty Investor Visas
Traders and investors, their families, and qualified employees may be eligible for entry under the E category. Requirements include: national of a country that has a particular commercial treaty with the United States; “substantial” investment in a company in the U.S., or regular trading with the U.S.; principal investor or “key employee” status in this company. Visas in this category can be extended indefinitely, as long as the trading or investment activity in the U.S. continues.

J-1 – Exchange Visitor Visa

In general, this category is open to foreign students, au pairs, scholars, doctors, medical students, business and industrial trainees and others participating in U.S. government-approved programs for gaining
experience, studying or performing research. Changing status to other non-immigrant categories may be permissible, depending upon visa restrictions.

F-1 – Student Visa

Foreign nationals who have been accepted by U.S. colleges or universities and who satisfy certain other requirements may be eligible for this type of visa, which is valid for the duration of an applicant’s
course of study.

O & P Visa
The O visa is for foreign nationals who can exhibit “extraordinary ability” in the arts, sciences, education, business or athletics and those accompanying or assisting them. The P visa may be a viable alternative
for entertainers and athletes who do not meet eligibility criteria of the O visa.

B-1 – Business Visitors
In general, this type of visa is for individuals who can demonstrate a business-related reason for visiting the United States. Length of stay is for up to 1 year.

B-2 – Tourist Visas

This visa enables foreign  nationals to travel and vacation temporarily in the U.S. Such trips cannot involve employment, and the length of stay may be up to one year. Note that nationals of countries participating in the Visa Waiver Pilot Program may enter the U.S. without a visa and stay for a period of up to 90 days. However, if one enters under the Visa Waiver program, a change of status to other non-immigrant or immigrant categories is not permitted.

OTHER NON-IMMIGRANT VISAS

K-1 – Fiancee Visas

This visa is available to those planning to marry a U.S. citizen, but are currently outside of the United States. Persons granted the K-1 visa  have 90 days from the date of entry to marry; no extensions are allowed. After the marriage, a K-1 visa holder must convert the K-1 to a Green Card.

H-2B Non-Agricultural Visas
Used for nonagricultural workers coming to the U.S. to perform employment of a temporary nature. To qualify for this visa, a foreign national must be sponsored by a U. S. employer and possess requisite skills or background for the position offered. Petitioners for the H-2B must show documentation that no qualified Americans are available to fill the position. This group includes skilled workers.

H-3 Training Visas
Available to foreign nationals (generally, those who do not hold a university degree) who wish to participate in a training program not available in their country of nationality. The overall length of stay is up to 2 years. Requires a U.S. sponsor.

I – Information Media Visas
This visa for representatives of information media is generally issued for one year and renewable indefinitely.

R – Religious Worker Visas
Professionals working in a religious capacity in a “bona fide” religious organization may qualify for this visa type. To qualify, one must demonstrate that s/he has worked in a religious capacity for at least for the two years immediately prior to application.

Buy low, sell high: How Buffet does it

Dated: 25 Aug 2010
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BUY low, sell high.

This is the most popular theory in stock market investing. But the question is -– how would you know when a stock’s price is ‘low’?

The key: Compare a stock’s price with its ‘value’.

How is price different from value?
– Price is what the market is willing to pay for the share at a given time. It fluctuates from minute to minute.

– Value of a stock is the worth of its underlying business. It is more stable as fortunes of a company do not change overnight.

Buy when price is lower than value
If a share’s value is Rs 150 and price is Rs 125, then you get the stock at a discount of Rs 25.

While there is no guarantee that the price will not go below Rs 125, the probability is low.

This principle is called the ‘margin of safety’ and finds it roots in the teachings of legendary investors — Warren Buffet and Benjamin Graham.

Stupid Quotes

Dated: 10 Jun 2010
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  • We are unable to announce the weather. We depend on weather reports from the airport, which is closed, due to weather. Whether we will be able to give you a weather report tomorrow will depend on the weather.

    (Arab News Report )
  • How to store your baby walker: First, remove baby.
    (Anonymous Manufacturer)
  • I invented the internet.
    (Al Gore, former U.S. Vice President)
  • Sure there have been injuries and deaths in boxing  but none of them serious.
    (Alan Minter, Boxer)
  • You guys line up alphabetically by height.
    (Bill Peterson, Florida State football coach)
  • You guys pair up in groups of three, then line up in a circle.
    (Bill Peterson, Florida State football coach)
  • For most people, death comes at the end of their lives.
    (GLR Broadcaster, UK)
  • I owe a lot to my parents, especially my mother and father.
    (Greg Norman, Golfer)
  • I do not like this word bomb. It is not a bomb. It is a device that is exploding.
    (Jacques le Blanc, French ambassador on nuclear weapons)
  • He’s a guy who gets up at six o’clock in the morning regardless of what time it is.
    (Lou Duva, veteran boxing trainer)
  • I say no to drugs, but they don’t listen.
    Marilyn Manson, Singer
  • I would not live forever, because we should not live forever, because if we were ever supposed to live forever, then we would live forever, but we cannot live forever, which is why I would not live forever.
    (Miss Alabama, in the 1994 Miss Universe contest, when asked if she would want to live foreve)
  • After finding no qualified candidates for the position of principal, the school board is extremely pleased to announce the appointment of David Steele to the post.
    (Philip Streifer, Superintendent of Schools, Barrington, Rhode Island)
  • While sitting in a tavern, someone hit my nose from behind.
    (Reason given for insurance claim)
  • Danger: Slow Men At Work
    (Road sign in Brunei)
  • Permitted vehicles not allowed.
    (Road sign on US 27)
  • Elephants: Please Stay In Your Car.
    (Safari park sign)
  • After the tea break, staff should empty the teapot and stand upside down on the draining board.
    (Sign in a British office)
  • We can repair anything. (Please knock hard on the door  the bell doesn’t work.)
    (Sign on door of a repair shop)
  • We all get heavier as we get older because there’s a lot more information in our heads.
    (Vlade Divac, NBA basketball player)
  • Predictions are difficult, especially about the future.
    (Yogi Berra, Baseball player)

The Attack on America September 11, 2001

Dated: 24 Apr 2010
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Date of the attack: 9/11 = 9 + 1 + 1 = 11
September 11 is the 254th day of the year: 2 + 5 + 4 = 11
Twin Towers: standing side by side, resemble 11
The first plane to hit the towers was Flight 11
The New York is the State added to the Union is No. 11
New York City – Letters = 11
The Pentagon – Letters = 11
Afghanistan – Letters = 11
Flight 11 -> 92 on board – 9 + 2 = 11
Flight 77 -> 65 on board – 6 + 5 = 11
Last but not the least, GEORGE W BUSH – letters = 11