Christian Values Investments

What Would Jesus Invest In?
By Alan Korber

According to the bible, we already know how Jesus felt about moneychangers in a house of worship but what investments would Jesus possibly deem acceptable and suitable in today's society?

Residential Real Estate

A residential dwelling is a good place for a family to live in and a good thing for a family to own. A home can be the foundation and centerpiece for a family unit and family values. A good home can create a stable environment for the family members, the surrounding neighborhood, the town or city and the country as a whole.

Commercial Real Estate

Commercial real estate can be a boon to commerce and the local community. It can generate local and convenient marketplaces for vendors and consumers, can house businesses in a community, can create jobs on a local level - for construction workers, electricians and, of course, carpenters. Commercial real estate is a critical and fundamental component of successful local community development.

Savings Accounts, Savings Bonds, CD's, etc.

It is good to save some money and put it away for a rainy day; for into each life some rain must fall. And putting your savings in a secure financial institution is safer than keeping it under your mattress.

Stocks

Yes, the stock market is the bastion of capitalism, and capitalism these days is feared and hated around the world and by liberals here at home. Upon further examination here is what we will also find: in fact, the stock market is an excellent and efficient way for small, medium and large companies to acquire expansion capital. With the additional capital these enterprises can create new jobs, new products and more new tax revenues for the society.

An individual or other investing entity can purchase common stock shares of a company, and, in doing so, legally becomes an actual owner of that company, with voting rights regarding the affairs of that company. And an individual may even choose the specific company or companies he or she wishes to invest in. If an investor is a devout socially conscious person if they so desire they can even choose to invest in companies involved in alternate energy, environmentally beneficial products and services or invest in other politically correct fields.

Profits

Whatever the investor chooses to invest in, if the investment becomes successful and profitable, he or she can then choose to help those who need help, their less fortunate brothers and sisters, by donating the profits they make to a house of worship, a charity or other organization of their choice.

What Would Jesus Invest In?

Jesus most probably would not invest at all. After all, He would need no money (I'm sure His earthly needs would be provided for), would accumulate no wealth, have no investable funds, and thus would probably not be interested in financial investments of any kind.

But I don't believe that Jesus would mind if we mortals, as we go forth and multiply, make some good, solid, productive investments along the way.

Alan Korber is a successful investor and creator of the Korber Strategy, a simple and successful stock investment strategy for returns of 50%-100% annualized, published online at www.akorber.com.

Article Source: http://EzineArticles.com/?expert=Alan_Korber

How much can you afford to invest?

Net Income Over Cash Flow
By Hari Wibowo

Some Financial Analysts argue that using cash flow will provide a more accurate picture in determining the fair value of a common stock. What gives? They reason that investors should follow where the cash is. Cash flow will track the flow of cash in and out and this is the reason business exists; to get cash.

Things are not that simple, however. Just as net income, cash flow can be easily manipulated. Cash flow here refers to cash flow from operations found on the statement of cash flow published regularly by publicly traded companies.

Let's take a look at the statement of cash flow for one publicly traded company, Amazon.com (AMZN) and decipher its components. We will use the statement of cash flow for the year ending on 31 december 2004. Here is the source from Yahoo! Finance: http://finance.yahoo.com/q/cf?s=AMZN&annual

The top part is net income, which is self-explanatory. This is what a company earns during a period of time. For the time period earns $ 588 M. To get into the cash flow figure, we need to add depreciation expense, subtract any increase in accounts receivable and inventory and add any increase in short term liability such as accounts payable. Sometimes, there will be some adjustments made to the net income which will increase or decrease cash flow depending on the charge.

Now here is how companies can manipulate cash flow. This will in effect temporarily give an impression that cash flow has improved markedly.

Temporarily Delaying Payment. This will increase Accounts Payable which in turn will improve cash flow. While only good companies can demand its suppliers to delay payments, all the debt eventually needs to be paid.

Demanding faster payments from customers. While an efficient collection is needed for a firm's survival, giving less credit to customers will result in them balking away. In the short term, cash flow will improve due to improved collection. In the long run, customers will go to competitors who can offer better credit.

Keeping a tight supply of inventory. While bloated inventory is wasteful, there is a certain level of inventory that is needed to keep a business running. Short-minded management will try to manipulate cash flow by keeping a short supply of inventory. When you run a retail business, certain inventory is needed. It is not similar to a built-to-order company like Dell Inc. (DELL).

These three items vary from quarter to quarter and year to year. When determining fair value, it is best to ignore these fluctuations and focus on operational earnings generated by the company.

Another misleading cue from cash flow is that it adds up depreciation as the amount of cash generated from operations. While depreciation expense is a non-cash transaction, it is a necessary cost of doing business. For example a company bought a computer and depreciate it for five years. For the next five years, the company incur a non-cash charge, which is the reason why we add depreciation expense to our cash flow. However, we need that computer for our operational purpose. Unless we stop spending in our capital expenditure, adding depreciation expense to our cash flow does not make sense. Sure, you enjoy the benefit now. But five years from now, you need to spend money on a new computer, which is a cash outflow.

As with other investing tools, cash flow from operations cannot be used independently of other ratios. Each and every financial ratio has its strengths and weaknesses. I believe that cash flow does not reflect the true earning power of a company because of short-term fluctuations of the balance sheet and the addition of depreciation expense into a firm's cash flow.

Come get your free investing idea by regularly visiting our commentary section at http://www.noviceinvesting.com

Article Source: http://EzineArticles.com/?expert=Hari_Wibowo

Cooking up Investments

The Microwave Approach to Investing
By Lee Salinas

We live in a society obsessed with a microwave approach to life. We want what we want and we want it now! No doubt, we’re impatient. So how do you and I cope with our desire for instant gratification?

Sure enough, we want it right now. Instant breakfast. Fast food lunches. Three minute dinners. I’m even guilty of doing something surely none of you has ever done. I’ve screamed at our microwave because it’s taken too long to warm up my cup of coffee.

Some people, especially those new to real estate investing, have not been spared by this infectious “I want it now” mentality. Satellite dishes, cable, the Internet, pagers, cell phones, fax machines and, of course, email. Is it any wonder they just naturally expect to achieve instant results? It’s become a way of life.

Then they get involved in the wonderful wacky world of real estate investing. Not surprisingly, they expect private lenders to line up at their doorsteps. Realtors should immediately find them the houses they’re looking for. They want overnight success. They expect to become wildly wealthy after purchasing just a few houses. They want to become successful with no effort and no risk.

Heck, why not? After all, everything must be done instantly – now.

Well, not exactly. If you’re just getting started as a real estate investor, it’s critical that you reject this notion of “instant gratification.” If you’re searching for the “shortcut to success”, the “magic key to open the real estate treasure chest”, or the “instant wealth pill” to propel you over the top, you’re setting yourself up for a huge disappointment and inevitable failure.

Realistically, can you have all the money you need to finance your deals?
Yes.
Can you have realtors referring to you the right properties at the right price?
Yes.
More importantly, can you become wealthy as a real estate investor?
Yes.

But let me share a little secret with you. There is a price to be paid because there really are no shortcuts.

People who pursue success as real estate investors must have passion, perseverance, persistence, and most importantly, patience. It takes a lot of patience to really succeed as a real estate investor. Just ask anyone who’s made it.

Most of us know that patience is important in life and is a respectable quality and virtue to possess, so why is it such a rare virtue? Because we’re afflicted with impatience and don’t want to wait for our desired outcome or result.

But those investors that are able to rehab their minds and achieve patience can and do achieve success. Patience is a state of mind. I can just hear you saying in a very lively way as you read this, “But I don’t have any patience.” Well, patience can be developed.

Here’s some tips on how you can acquire a capacity for patience.

1. See the big picture. Put things in perspective. I recently had a birthday and I had to renew my driver’s license. So there I was in this long line at the department of motor vehicles waiting for over an hour to get my drivers license renewed. I was getting very impatient. But then I realized that renewing my license is something I need to do just once every five years. Waiting one hour for the privilege of being able to enjoy the freedom of driving for five years is not a bad deal.

2. Think long term. Impatience is usually the result of shortsightedness and focusing only on the now. If I discipline myself to make four phone calls a day or twenty a week, I will be able to find motivated sellers. If I’m able to purchase just one house per month from motivated sellers, I will purchase twelve in one year. So what if you don’t purchase a house in a couple of days? But where will you be a year from now if you continue to make the daily phone calls?

3. Focus your mind on the right things. When you are impatient, you are only impatient because of what you are focusing on or thinking about. Be a positive thinker. Do not focus on the fact that you’re having to make 20 phone calls a week; rather focus on the positive result you want to achieve – buying a house.

4. Waiting adds value to the reward. My dad always knew I was cursed with impatience, so he always reminded me of the old adage that says, “Good things come to those who wait”. Success itself is one of the greatest examples of this. Real success takes time, and therefore takes patience.

5. Avoid comparison. Impatience is usually the result of making faulty comparisons. If another investor has reached a level of success that you desire, realize that he or she has already paid a price. Instead, you will probably compare your worst virtues to another investor’s best virtues. Really, don’t go there. Instead, decide to do what the other investor has done. Pay the price.

It is not easy to practice patience, but those investors that are able to master patience are able to master the art of real estate investing. Patience can be learned like any other skill. The microwave approach to successful investing dies hard, but lasting success requires that a real estate investor practice patience.

Lee Salinas is a full time real estate investor in San Antonio, TX. After losing his mid management job in June 2002, Lee decided to become a real estate investor. In three years, he has purchased over 140 properties and authored a business plan for real estate investors. The real estate business plan is available at his website - http://www.realestatebizplan.com.

Article Source: http://EzineArticles.com/?expert=Lee_Salinas

Tax Changes

I just got back from an interesting seminar about Taxes, Investment, and the effects of your investments on taxes. Not a lot of time today, but just a note to let you know things are changing. Before the end of the year if you have a required retirement fund withdrawal, you need to visit with your Financial Planner to be assured of the best tax options for your investments.

Don't take this lightly. There's important changes on the horizon, and you need to be aware of the consequences of various actions you might be taking with your investment dollars.

BE aware, and save yourself money.