In the first half of this week’s podcast, Doug meets Jim Rogers, the author of Street Smarts Adventures on the Road and in the Markets. Jim is also an author, investment expert, and financial commentator who has appeared in various publications, including Time, The Washington Post, The New York Times, Forbes, Fortune, and more. Jim tells Doug about investing in commodities and why it is advantageous to invest in what you know. Find out more by listening to this interesting podcast.Doug Goldstein, CFP®
Posts Tagged ‘investments’
Straight from the Jerusalem Boardroom #179.
While struggling to turn around an expanding (5%) budget deficit, Israel sustains its unique role as a pipeline of commercial, defense and homeland security technologies to the U.S. and the Free World. Israeli technologies, shared with the U.S. industry, have enhanced the U.S. employment, research & development and exports.
1. Facebook about to acquire Israel’s Waze for $1BN. In January, Waze turned down Facebook’s offer of $500MN (Israel Hayom, May 10, 2013). Warren Buffett completed acquisition of Israel’s Iscar – $2BN for the remaining 20% of Iscar. $4BN were paid for 80% (Globes, May 1). NYC’s KKR Private Equity acquired (from NYC’s Warburg-Pincus Ventures) 75% of Israel’s Alliance Tires Group for $500MN (Globes, April 15). Israel’s Prolor was merged into Miami, FL’s Opko for $480MN (Globes, April 25). San Jose, CA’s Avago Technologies acquired Israel’s Cyoptics for $400MN (Globes, April 12). China’s Fosun Pharma acquired Israel’s Alma Lasers for $240 Million (TechTime, April 29). J.P. Morgan sold 21% of Israel’s CaesarStone (held by Israel’s Tene’ Investment Fund) for $170MN, on NASDAQ (Globes, April 15).
2. Japan’s Sony extends its medical tech investments, investing $10MN in Israel’s Rainbow Medical investment fund, joining prior giant investors: Minnesota’s Medtronic, Illinois’ Abbottand Italy’s Sorin. Sonny is seeking Israeli acquisitions. Israel is a research & development hub for GE Healthcare, Phillips, Medtronic, Johnson & Johnson, Boston Scientific and Switzerland’s Roche, which have acquired Israeli companies and have invested in scores of Israeli start-ups (Globes, May 9). GE inaugurated a software research & development center in Israel (May 1).
3. London’s Amadeus Capital led a $17MN round of private placement by Israel’s ClickTale (Globes, May 1). Israel’s Micronet Enertec raised $8MN on NASDAQ (May 6). Waltham, MA’s Battery Ventures participated in a $6MN first round of private placement by Israel’s FTBpro (Globes, May 9).
4. The scope of Leviathan’s offshore proven natural gas reserves is larger (19 Trillion Cubic Feet) than expected (17 TCF), according to Yedioth Achronot, May 2).
5. Israel’s unemployment decrease to 6.5%, during the first quarter in 2013, derives from increased integration – by Arabs and ultra-orthodox Jews – into the job market. The average unemployment rate is 10.9% in the EU, 12.1% in the Euro Bloc and 25% among the youth of the Euro Bloc.
6. “In January, Intel executive Greg Slater noted that many of his company’s major innovations over the past three decades started in Israel—including the latest ‘Ivy Bridge’ and ‘Sandy Bridge’ microprocessors, which accounted for 40% of Intel revenues in 2011….Microsoft’s founder, Bill Gates, said in 2006 that ‘the innovation going on in Israel is critical to the future of the technology business….’ Scores of major U.S. manufacturers—from General Electric GE to General Motors, GM, Microsoft, IBM, Google, Apple and others—have R&D centers and technology incubators in Israel…. Israel [contributes] to the U.S. economy thousands of skilled professionals, hundreds of joint patent applications, and hundreds of coauthored scientific and technical papers…. (Wall Street Journal, March 21, 2013).”
Visit The Ettinger Report.Yoram Ettinger
This week, meet Michael K. Salemi, professor emeritus at the University of North Carolina-Chapel Hill. His many writings include Money, Banking, and Financial Markets: What Everyone Should Know. What do you need to know about your finances and the world of banking? Find out by listening to this weeks show.Doug Goldstein, CFP®
One of the reasons why many investors fail in their investments is because they are driven by their emotions. This problem is studied by academics who specialize in an area known as behavioral finance.
People make decisions for all sorts of reasons, but when you make an investment decision based on emotion, not fact, you stand to lose your head, heart, and pocketbook.
For example, sometimes investors hear some positive news about a certain stock and they rush to buy it simply because they feel good about it. They haven’t necessarily researched its individual merits, or checked it against their financial plan to see if it fits with their overall investment goals. They just make a sudden investment decision.
Have you ever done that?
Many investors are driven by fear or excitement, and in both cases their surging adrenaline may help them in a “fight or flight” situation, but not with their investment portfolio.
If an investor is too fearful, he could end up either selling a stock needlessly or not developing his investment potential enough. But sometimes investors don’t have enough fear and they become the victims of Ponzi schemes and other scams.
I recently spoke with Professor Meir Statman, author of What Investors Really Want, on the Goldstein on Gelt show, and I asked him why he thought people let their emotions get the better of them. He replied, “People follow their intuition, and their intuition says that they can tell the difference between honest people and dishonest ones. Dishonest people take advantage of precisely that.” (Click here to hear more of what Professor Statman has to say.)
In the ideal world, investors have the time and resources to take a step back from their emotions and properly research financial moves. But in the real world, who has the time, financial background, or desire to educate themselves properly before making rational investment decisions?
What’s the solution for avoiding the pitfalls of emotional investing?
Find an effective and reliable financial planner. A financial planner has the knowledge and background necessary for researching and assessing various investments and finding out which ones are the most appropriate for you and your financial goals. For this reason, it’s worthwhile taking the time and calling your financial planner today.
Having an objective certified professional oversee your investments is the best way to prevent yourself from falling into the trap of emotional investing.Doug Goldstein, CFP®
Is there a connection between capitalism and the Jews, or is this just an anti-Semitic canard? In the second part of this week’s Goldstein on Gelt show, Douglas Goldstein meets Professor Jerry Z. Muller of the Catholic University of America, who answers this question and more when he discusses his new book “Capitalism and the Jews.”Doug Goldstein, CFP®
What is a hedge fund and is it worth investing in one? What is the difference between a hedge fund and a mutual fund? Richard Wilson, founder of the Family Offices Group, president of Richard Wilson Capital Partners, and author of The Hedge Fund Book: A Training Manual for Professionals and Capital-Raising Executives and The Family Office Book: Investing Capital for the Ultra-Affluent, answers these questions and more. Find out whether hedge funds and using a family office is for you by listening to this fascinating interview in the first part of this week’s Goldstein on Gelt podcast.Doug Goldstein, CFP®
1. “The flow of natural gas from Israel’s Tamar reservoir in the Mediterranean to the Ashdod reception facility was inaugurated on March 30, 2013, ushering in a new era in Israel’s energy sector [led by the Houston-based Noble Energy]. Israel will not only become independent in being able to supply its own energy needs, but it is likely to become an energy exporter as its maritime gas fields are further developed…. The amount of gas discovered offshore now dwarfs any feasible, projected Israeli demand for at least half a century….Israel will become a net exporter of gas….Europe would seem to be the natural export market for Israeli gas….Yet Asia may emerge as Israel’s preferred export destination. The Australian firm, Woodside, which acquired about a third of the rights to the Leviathan field, is oriented toward marketing gas in Asia, and envisions building a liquefaction plant to service that trade….Israel will view with apprehension any scheme to anchor its critical infrastructure in countries beyond its own borders, such as Jordan, Cyprus, or Turkey….” (Dr. David Wurmser, April 4, 2013).
2. Hewlett-Packard (HP) is the second largest investor – trailing Intel – in Israel’s information technology sector, with 6,000 employees. HP’s Israel-developed products carry the Indigo and Scitetx Vision brands (Southeast-Israel Business News, March, 2013).
3. The Chicago-based AllScripts acquired Israel’s dbMotion for $235MN (Globes Business Daily, March 6, 2013).
4. The globe’s largest biotech company, Roche of Basel, Switzerland, concluded a joint venture with Israel’s Chiasma, developing and commercializing Chiasma’s Octreolin for acromegaly and neuroendocrine tumors. Roche received a worldwide exclusive license in return for an upfront payment of $65MN and additional $530MN in milestones and royalties (Globes, February 19).
5. Singapore Telecommunications (SingTel) and Israel’s Amdocs are establishing a joint development center in Israel. Amdocs operates a similar center with AT&T. SingTel intends to invest in a few Israeli start-ups, following its acquisition – in March 2012 – of Israel’s Amobee for $321MN (Globes, March 4). Germany’s global optical giant, Zeiss, is establishing a research and development center in Israel. Five years ago, it acquired Israel’s Pixer (Yedioth Achronot daily, April 4). Michael Dell’s MSD Capital invested $22MN in Israel’s food chain, Rami Levy, increasing its holding to 6.1%. The Boston-based Fidelity acquired 5% of Rami Levy for $27MN (Globes, March 29 and April 8).
6. Hong Kong’s investment mogul, Li Ka Shing’s Horizon Ventures, led an$ 8MN round of private placement by Israel’s Nipendo (Globes, March 12). The Waltham, MA-based Battery Ventures – joined by the Menlo Park, CA-based Opus Capital – led a $10MN second round by Israel’s SiSense (Globes, April 4). The Menlo Park-based Sequoia Capital – joined by T-Mobile – led an $11MN round by Israel’s Innovid (Globes, March 8). Israel’s StarCom raised $4MN at the London Stock Exchange for smaller companies, AIM (March 6).
Visit The Ettinger Report.Yoram Ettinger