Since the boom of the Law of Attraction, this question has become quite famous:  How I can attract money into my life?

And since then, many people have tried to attract money into their life, and few have truly succeeded.

Whether or not you know the Law of Attraction, and even whether you use or not use it, there are ways to attract money into our lives, or more generally wealth and financial well being.

And rather than wait to see in this blog issues such as spells, prayers, or esoteric elements, let me disappoint you because I consider anything like that (personally) viable in the way of wealth creation.

That is, I trust much more in my abilities to create wealth, in my mind, in my decisions and my actions with a view to success in repeating a prayer or making a strange and fearful spell that I recently help to focus on obtaining market value.

Wealth and money can only be generated in a way: Getting paid in exchange for providing value to the market.

“The market” can be anyone, regardless of the area in which we perform, in that we provide value to make actually get monetary rewards.

Whether you work as an employee or independent entrepreneur or you are a housewife, or you have a business or practice the investor, you find yourself involved in a market. This market is one that is responsible for determining the price of your actions and based on that price is that you should act.

People do not understand that do not require the government to increase the minimum wage for them to win more because there are higher wages and the wage scale as such. What happens is that many people want to earn more money, doing exactly the same amount of work.

“If you keep doing the same things, you get the same results”.  – Albert Einstein (more…)

For periods of economic crisis, gold becomes a safe haven for many investors both large and small.

The metal can be purchased physically fit bullion (gold bars have almost one hundred percent pure, with prices ranging between 5,000 and 20,000 Euros depending on your actions), but can also be purchased through certificates deposits or mutual funds.

- Certificates of Deposit:
One of the easiest and simple to buy physical gold. The advantage is that the holder of such certificate does not have the physical gold bullion at home or at any bank. Thus the saver / investor can reduce the costs of transportation and maintenance, while reducing the risk of theft. (more…)

Forgive me financial advisers, but their tips are often unintelligible. Moreover, I’m not the only one who thinks so: 50% of investors do not fully understand acknowledge the advice of his counsel, and that nearly 90% of professionals considered to have done his job and left her satisfied customers according to a etude which echoes the Gestiohna brokerage.

Another report, prepared by the Centre Inverco gives us more data and suggests that the more dynamic and younger the investor, the more knowledge you have of financial products. The trouble is that the profile of the average saving is, rather, that of a man older than 50 years and a conservative in their investments.

To facilitate understanding between client and consultant, Gestiohna includes “10 key concepts that every investor should know in times of crisis” and which I reproduce verbatim:

REDUCTION OF BETA is the risk indicator reflecting the sensitivity of a stock to market fluctuations. With a beta less than one, the action will tend to collect only part of the market movements, making it more stable and talked of a “defensive value.”

Problem subprime mortgage credit risk borrowers (people with no income, no job, no assets) in the U.S. residential market, which highlighted the shortcomings of a system based on subprime mortgages and was one of the triggers for world economic crisis. (more…)

This metric based on profitability, tells us how much free cash flow a company generates in relation to what would comprise an investor buy the entire company.

Expressed in the simplest way to divide the free cash flow by enterprise value. The enterprise value is the market capitalization of the company over the long-term debt minus its cash.

The objective of this ratio is to measure how efficiently a company is using its capital (including debt) to generate free cash flow.

We can see a practical example (taken from data from Morningstar).

Coca-Cola in April 2005 had a market capitalization of $ 100 billion with a long-term debt of $ 1.2 billion. It also had the then $ 6.7 billion in cash on its balance sheet. (more…)

One of the balance sheet asset that can help us better understand the business model a company’s inventory. This can be found at the current assets.

Most companies that produce consumer goods, have the following type of business: First, make a product and then sell it. Within a period of time that passes since I made up that sell it, the product recorded on the balance of the section on inventory.

Often, in complicated situations, the companies before taking losses, accumulating and making her increasingly large inventory. This is dangerous because at some point will have to get rid of that inventory, and as generally more “age” has an inventory, the less value it has, as consumer goods tend to lose value over time.

So the first things you should look at is whether the accumulation of a company’s inventory is within reason. As every business model has specific characteristics, it is always interesting to take these data into context of the same company. By this, I mean look at how evolution has been the inventory of the company in previous years. If the inventory has grown disproportionately, may be a sign of trouble on the horizon. (more…)