Sunday, 4 May 2014

Social Media in a Nutshell

Social media has gone from strength to strength with user numbers continuing to rise by the day and new social media platforms being born and bought every other month. We take a look at some of the big players in social media and also a look at the mobile. The introduction of the smartphone has rocketed social media use as it has enabled them to go from the desktop into our pockets.

Social Media in a Nutshell infographic

20 Insights from Peter Lynch

1. Invest In What You Know
This is where it helps to have identified your personal investor’s edge. What is it that you know a lot about? Maybe your edge comes from your profession or a hobby. Maybe it comes just from being a parent. An entire generation of Americans grew up on Gerber’s baby food, and Gerber’s stock was a 100-bagger. If you put your money where your baby’s mouth was, you turned $10,000 into $1 million.

2. Let Your Winners Run
It’s easy to make a mistake and do the opposite, pulling out the flowers and watering the weeds. If you’re lucky enough to have one golden egg in your portfolio, it may not matter if you have a couple of rotten ones in there with it. Let’s say you have a portfolio of six stocks. Two of them are average, two of them are below average, and one is a real loser. But you also have one stellar performer. Your Coca-Cola, your Gillette. A stock that reminds you why you invested in the first place. In other words, you don’t have to be right all the time to do well in stocks. If you find one great growth company and own it long enough to let the profits run, the gains should more than offset mediocre results from other stocks in your portfolio.

Understanding the Behavior of the Stock Market

To understand the behaviour of the stock market, it's important to understand which factors influence buyer behaviour, which ultimately increases or decreases the price of the stocks that make up the market. This infographic enlists various factors that impact the behaviour of a stock market.

Behavior of the Stock Market infographic

Quote for the day

“Wisdom requires an experience-based knowledge of the world (including, especially, the world of human nature). It requires mental focus, reflecting the ability to analyze and discern the most important aspects of acquired knowledge, knowing what to use and what to discard, almost on a case by case basis (put another way, it requires knowing when to follow rules, but also when the usual rules no longer apply). It requires mediating, refereeing, between the frequently conflicting inputs of emotion and reason, of narrow self-interest and broader social interest, of instant rewards or future gains.” - Stephen Hall