How to Gain a Better return for Your Investment

Warren Buffet warns against investing in high-cost and incompetent funds, since you won’t get a good return back. He wagered $1 million for charity that he will get a better return by investing in a passive index fund than a group of hedge fund investors. By the looks of it, he will come out on top.

Buffet has a bottom-up investing approach that has proven to be very effective over the years and he plans to stick to it. He also advises that others follow suit, if they want to gain a good return and more information click here.

As Buffet explains, there are many mutual funds that provide poor returns because of the high management fees and excessive trading. He advises that it is best to go with good long-term investment returns and to keep costs low.

Index funds have long been believed to be a safe bet, but they don’t offer much cushion against down markets. Only about half of the 1200 surveyed investors last year were aware that index funds make them susceptible to losses during market downturns and Tim’s lacrosse camp.

Buffet’s advice: it’s best to do better in the long run and to stay ahead of the crowd when the market goes down.

Timothy Armour joined Capital Group in 1983 and is now chairman and chief executive officer at the firm. He started out in The Associates program and now has 234 years of experience in the investment market.

Armour gained his bachelor’s of economics form Middlebury College and is an equity portfolio manager.

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Taking out a Loan Through Equities First

One of the biggest impacts of the credit crunch and increased regulations was the decreased ability for most people to obtain a personal loan. While getting a personal loan today is harder than it was a decade ago, those that are in need of capital can still get a loan through a specialty finance provider. One of the leading specialty finance providers in the world is Equities First.

Equities First is a specialty finance firm that specializes in providing loans that are secured by an individual’s stock portfolio. When taking out a loan through the company, you will provide the company with a lien on your stock portfolio. If you happen to default on the loan, the company will have the ability to liquidate your stock portfolio to pay off the loan and any past due interest or fees.

Since they are receiving a great form of collateral, which can be easily liquidated, the Equities First is able to provide the loans with high leverage, almost no fees, and low interest. Beyond the low cost, the stock-secured loans provide borrowers with a number of different advantages.

One way that these are beneficial is that the loans allow you to continue to pursue your original investment strategy. When buying stock, you may want to purchase a certain security because it pays a higher dividend rate, has the ability to increase in value, or it provides you with an advantageous tax position. If you were to sell the stock today to access the capital, you will lose out on all of these benefits. If you are in need of liquidity, taking out a stock-secured loan will allow you to access the capital without selling the underlying stock.


Equities First Holdings: the Global Lender Spots a Growing Trend in Stock Loans to Secure Working Capital

Banking and financial institutions have tightened their lending criterion. Because of this, the stock-based loan has secured a chance to grow as an alternative solution for those seeking working capital. Equities First Holdings, LLC (EFH) the global leader in providing alternative loans using stocks, has seen an increment in the stock-based loans. For this reason, banking and lending institutions have tightened their lending criterion because of the harsh economic climate in the world.

While there are numerous opportunities out there for corporations and individual investors, many banks have slashed down their lending amount. They have increased the qualifying criterion for basic loans. For borrowers that want to raise quick money for capital investment, there is a chance for them to develop a working relationship with the equities lenders. This is the best and most flexible labor loan to raise quick money in the absence of a bank loan.

The CEO and founder of EFH, Al Christy, said that the company has set aside this particular strategy to attract customers. This is the most innovative borrowing alternative for businesses and individual investors seeking financial solutions.
During a four-year loan term, there is inevitable market fluctuation. However, the stock-based loans provide the solutions necessary for anyone in need. Most of these loans have a non-recourse feature. For this reason, they allow the borrower to walk away from any point in the stock. Borrowers can keep their loan proceeds if they miss payments. They have no further obligation to lenders. Borrowers can be pre-qualified with a margin loan. They may require money be used for the specific purpose as with most banks.

Equities First Holdings financial institution provides their customers with alternative financial solutions. They supply capital based on their available stocks. They evaluate the bonds, securities, and assets to determine the amount of money to give the borrower. The company has done over 700 transactions for more than $1.5 billion. The company has offices in 10 countries in the world.