Archive for the ‘Investment Planning’ Category

Obama Economy – Stock Picks 2009 – Long Term

January 29th, 2009 Vijaianand

Today, the biggest ever stimulus package of $819 billion is been approved by the senate. Its a first victory for Mr. President Obama. He has got of stake in this new stimulus package and we all hope it works. But many analyst thinks with money going to public sector in developing infracture like bridges and so forth. We won’t see the benefit until for 1- 2 years.

Taking that foreword, many analyst are focusing on stocks which has focal point towards infrastructure like Catepillar (CAT), Maintowo (MTW) who all makes some machineries really needed for the infrastructure growth. Also

I would bet my dollar with CAT as they just laid off few thousand and its selling 42% below its high, P/E ratio of 5.83. It also yields 5% dividend which is sweet. In conclusion, its really a good buy as a long term investor (2-3) years.

Another good one, GS – Goldmann Sachs which follows real conservative methods in investing. They performed real well last year and only announced their first loss ever in the last quarter. They will be the first one to pay back the TARP loans. They are selling in 50% discount from 52 week high. A good buy for long run.

Next Healthcare industry. An Industry which is always envyed by others because of its recession proof characterization.  In 2008, the S&P 500 fell 37%, while the healthcare industry fell 24.5%. Some good ones from the bunch are, Johnson&Johnson (NYSE:JNJ), Abbott Laboratories (NYSE:ABT), Merck (NYSE:MRK) and Bristol-Myers Squibb (NYSE:BMY), Pfizer (PFE) and Wyeth.

JNJ was considered a strong company until it got hit by serious of patent cases. Currently, Abbott Laboratories (NYSE:ABT) faces no such issues in its drug portfolio. Further, it experiences strong growth in all of its business segments across the globe. It dropped by only 4% last year. Thus, Abbott’s solid relative performance and its sound operating fundamentals will position it as a leader in the pharmaceutical industry for some time to come.

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Time is of the essence – Part 1

April 16th, 2008 Vijaianand

Time is Precious. Time can’t be brought back.

You might wonder, “Why is this guy telling me the fact which we all know?”.


I truly agree, we all know very well about TIME. But I feel we should be reminded of its importance know and then. We think we have real good sense of TIME as we deal with it day in and out. But you don’t. We just let TIME slip away and lose everyday without making any progress in our goals whether its financially or . Don’ t you think we take TIME for granted. 

Today marks the one year anniversary of Virgina Tech massacre which killed 16 innocent lives. We all were sad when we heard the horror news. It seems to have just happened but one year just flew by taking along with us. I even wonder, I just celebrated my 31st birthday and now its time for the next one. I am growing older every day.

Without us noticing real hard, TIME just flies too fast, very fast these days. I don’t know why “Is earth moving fast ?” Not really but it feels like time is moving fast. Alright, as TIME is set to take us along the ride. If we don’t take timely decisions by playing along with TIME, we are going miss out on it. TIME is the real key for many of our life factors. It is a viable factor for your financial growth and all of our future.

Magic of Compound Interest

Compound interest is a very powerful formula if you have definite plan can make you a millionaire. Yep, No kidding!!! A little bit of money invested well over a long period of time can equate to a lot of money! It’s really a simple concept, but so many people fail to make use of the amazing power of compound interest. Compounding simply means you earn interest on the interest. In other words, interest is calculated on the basis of the principal sum plus any interest that has accrued — unlike simple interest, which is interest calculated only on the principal amount.

Let’s just take for how TIME plays in the Savings arena. Let’s say I have big junk of $50,000 right now at the age of 32 and I invest in a vehicle which returns me merely 6%(I feel to be safe than sorry than big returns). When I am 62 year, it will come back to me as $300,000 with yield of 250,000. Check the graph below with difference of compound interest on daily or monthly. Most banks do monthly compounding which is the market norm.

On the other hand, I just slept 10 years or didn’t have $50,000 early enough. So I was able to get hold of $50,000 when I am 42 years. I invest on the same vehicle for 6% return APY. Check out the return, its only 165,000.


See the difference 10 years can make for your investment. Its nearly $135,000 just gave away because I didn’t put money at the right time. Compound interest is so powerful and fantastic tool if used properly can yield good returns. Visit this site and try to calculate different variation and play with it to understand the compound interest magic.

Let me show the savings plan which can make you a millionaire. If you are 25 years and can put away $500 month in a investment vehicle which can yield 8% APR, you will be a millionaire at 66 years after considering taxes and inflation deductions.

(Graph Courtesy: bankrate.com)

Click to check out this tool (courtesy: dcu.org). You can play with it to find your own plan to become a millionaire. It’s easy and simple if you stick with a good plan. I have more to show on how TIME can be a real genie when played well can make you financially strong for your future. Wait for my part 2.

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