Investment Advice to Help You Sleep Better at Night

Modern finance has three perspectives on the workings of the stock market. Inefficient, semi-efficient, and perfectly efficient. For the most part, market observers nowadays believe in a semi to perfectly efficient market. That is to say, information regarding a company is priced into its stock almost instantaneously.

Financial statisticians devote years churning out data to prove that the market, for the most part, is extremely efficient in factoring in new information. And stock prices: barring insider information and uncouth accounting manipulation, is an accurate barometer of the intrinsic value of the company.

Except this is hardly the case. The assumption of market rationality can only be taken so far. We have all seen what happened to the market during the tech bubble and the now real estate bubble. Waves of market decline we are witnessing now may very well signal irrational pessimism: there are many businesses now trading well below their intrinsic value.

Now we need to separate the true investors from the speculators.

Most market experts are behind the notion that buying low and selling high is the right approach to investing. In other words, a successful investor should consistently buy at the lowest point in the market and sell at the point of irrational exuberance. Considering nobody has a crystal ball and thus very few can consistently “time” the market successfully, the industry of technical trading sneaks its way into the investing world. Jargon like resistance, support, and moving average enter the popular vocabulary. Many people go for it hook, line, and sinker, then get burned attempting the impossible. The impossible being trying to outsmart everybody by applying the gambling mentality to investing.

And then there’s Warren Buffet and his disciples. First, they separate the notion of using stock prices to measure the value of a business. They distrust the oscillatory swings of the market and the speculative herd that drive it. Buffet views buying stocks or bonds akin to owning a slice of the business. If the business is sound, why worry about fluctuations in price? Secondly, the timing issue is eliminated. Berkshire Hathaway does not seek to enter the market at the lowest price, nor exist at the top. Instead, BH makes a point of exiting the market as soon as the stocks are thought to be overvalued, thus providing its shareholders a fair return on their investment regardless of their chosen time of exit.

What a relief, to take back control instead of beholden to a schizophrenic market.

Which brings us back to you as an individual investor. Sure, it would be hard to own a piece of the business you invest in without Buffet’s capital base. But it does bring the point home that you don’t need, nor want to be an opportunist when it comes to investing. If you do bring the gambling mentality into the investment game, then be prepared to lose it all.

But if you are firm in your belief in the competent management and health of a business, and embrace the fact that the market has always been, and will always be driven by greed and fear. If you concede that the market will rarely place a fair or correct value on the stock, but trust that sooner or later, the market will correct itself, then you can sleep much better at night.

Do You Have Time, Energy and Effort to Pursue Your Free Home Business Ideas?

If you have free home business ideas then you may wonder whether it is worth pursuing them.

It obviously seems better to set up a business which is free for you rather than investing a lot of money into something.

However, there is also a matter of time. Even if the free home business ideas take no capital investment they will still take a lot of time and effort to set up.

This time could possibly be spent better elsewhere in an occupation which could earn more money so this is a factor which you have to consider before going ahead with any of your free home business ideas.

It could be a lot easier to invest money in a business and do a small amount of work rather than do something that is free but takes a lot of time and effort.

You may just not have the time to put in or you may rather do something else with your time rather than working hard.

Assuming that you do decide to pursue one of your free home business ideas, you will need to be prepared to invest time into making it work.

Many people who set up their own business are expecting that they will have more time to spend with their family and a more flexible life.

However, the reality is that if you are trying to set up a new business on your own then it is likely to take more time than you could imagine.

Most people find they work more hours than they ever did at a 9 to 5 job and it can be much more stressful.

At the beginning even with free home business ideas and no initial investment, there are still likely to be concerns about money as you will need to make sure that you are making a good enough profit to make it worth all of the effort that you have to put into it.

Many people start up a new business and find that it does not do as well as they had hoped. Even with free home business ideas, this could be the case.

It is unfortunate and many people keep trying to succeed, hoping that they will not be classed as a failure and not wanting to give up on their idea.

However, it is very important to know when to walk away and try something new. You can waste a lot of time, energy and effort and suffer a lot of stress by trying to pursue something which is just not going to work.

A Home Based Business Versus a Home Based JOB

We often hear people say they “want to work from home”. Most people do not really know that this statement can mean a variety of things. Some simply mean they would like to do their current job from home. Many employers across the country offer work at home programs that will allow you to do the very same job you would be doing sitting at your office except doing work from home.

If your employer does not allow you this option, and most do not, then you need to find another way to make money from home.

The first thing you should do when trying to find something to do from home is decide if you want a home based BUSINESS or a home based JOB. A business and a job are not the same thing. Actually they are VERY different things.

A home based business is exactly what it sounds like… it is a business. You are the boss and you are in control of everything. When you own your own home based business you will must set your own hours and set your own goals. The best part of owning your own home based business is that you will be able to give yourself a raise whenever you want.

A home based job is exactly like a job… just from home. You still have a boss, you still have a workload given to you and you still have a set amount of time to do it in. Your boss will also decide how much you deserve to get paid and worst of all you can still get fired.

If you are looking for a home based job you might want to stop right here because this article is not intended for you and will probably not help you at all.

If you are really looking for a home based business you may have just found what you’re looking for.

There are thousands of options when it comes to finding the right home based business. There are so many choices that it can often be overwhelming.

One of the first things you’ll want to think about is your commitment. By commitment, I am referring to time and money required to get started. How much do you have to invest for a successful business plan? How much time are you willing to invest to get your home based business ‘off the ground’?

Investment on your part is a key difference between owning a business and having a job. I hear people tell me they don’t want to invest any money in their business. What I hear them saying is, “I’m not willing to risk anything but I want everything”. I know that our business is not right for them. I often just wish them the best and have to let them go.

It’s true that a job WILL allow you to save some money but it will never allow you the freedom that you’ll find by owning your own business.

Once you have a good idea of how much you’ll be willing to invest you’ll want to start thinking about the type of work you can get excited about. As you are interviewing potential partners to work with, ask the tough questions. Ask them:

“What will a typical day look like?”

“What will I be doing to grow my business?”

“Who will I have daily access to for help?”

“What type of training do you provide?”

“How quickly can I expect a return on my investment?”

The answers to these questions will give you a good idea if that home based business is right for you.

There are a lot of great products out there that you can market from home and the choice is totally up to you but you will want to make sure it’s a product line that has real value to your customer. Also make sure it’s something that you are going to feel comfortable marketing… something you can get excited about.

I truly hope that this article has been helpful for you and given you some idea of what you are looking for. If it’s a home based job that your really looking for, I wish you the best of luck in finding that.

If however, you decide that you want the incredible lifestyle that a home based business affords you start by getting some information about owning your own business today.

Working from home is an incredible lifestyle… let’s hope you get to live it very soon!