Comments on: Does It Pay to Save? http://www.businesspundit.com/does-it-pay-to-save/ Entrepreneurship, Startup Companies and Business Philosophy Fri, 20 Nov 2009 20:31:15 -0600 http://wordpress.org/?v=2.8.5 hourly 1 By: Lela Davidson http://www.businesspundit.com/does-it-pay-to-save/comment-page-1/#comment-8691 Lela Davidson Mon, 15 Sep 2008 17:19:47 +0000 http://www.businesspundit.com/does-it-pay-to-save/#comment-8691 Good point Ryan. Like I always say - it'll either work out or we'll all be eating beans together. You've got to be an optimist! Thanks for the link to Common Sense Investor. Good point Ryan. Like I always say – it’ll either work out or we’ll all be eating beans together. You’ve got to be an optimist! Thanks for the link to Common Sense Investor.

]]> By: Ryan http://www.businesspundit.com/does-it-pay-to-save/comment-page-1/#comment-8683 Ryan Sun, 14 Sep 2008 11:25:53 +0000 http://www.businesspundit.com/does-it-pay-to-save/#comment-8683 I feel the same way here. But let's remember that those of us who leave below our means are not only positioned to benefit from buying things with cold hard cash, but also buying ownership in fundamentally sound corporations with cold hard cash. <br /><br /> The question really is this: are there any fundamentally sound corporations in the current economic climate? <br /><br /> At the end of the day I always say to myself: unless the entire US economic system collapses, in which case there will be total and utter chaos, there will always be some fundamentally sound corporations out there that are doing things well and also under valued. It is in depressed states like the current one where we can find the best values on fundamentally sound companies and position ourselves to benefit as economic conditions improve. <br /><br /> What to look for in a fundamentally sound company? Well, I'd look for growth in market share. I'd ask whether the company has a product or service that will continue to be in demand for at least the next 10 years. I'd look for a relatively low Price to Earnings ratio. I'd look for a relatively high Return on Shareholder Equity. These 4 factors can help you invest with long-term confidence. <br /><br /> I also recommend this article by Vito over at The Common Sense Investor: <br /><br /> <a href="http://csinvestor.com/top-3-questions-to-ask-about-every-stock-ready-willing-and-able/" rel="nofollow">Top 3 Questions To Ask About Every Stock</a> I feel the same way here. But let’s remember that those of us who leave below our means are not only positioned to benefit from buying things with cold hard cash, but also buying ownership in fundamentally sound corporations with cold hard cash.

The question really is this: are there any fundamentally sound corporations in the current economic climate?

At the end of the day I always say to myself: unless the entire US economic system collapses, in which case there will be total and utter chaos, there will always be some fundamentally sound corporations out there that are doing things well and also under valued. It is in depressed states like the current one where we can find the best values on fundamentally sound companies and position ourselves to benefit as economic conditions improve.

What to look for in a fundamentally sound company? Well, I’d look for growth in market share. I’d ask whether the company has a product or service that will continue to be in demand for at least the next 10 years. I’d look for a relatively low Price to Earnings ratio. I’d look for a relatively high Return on Shareholder Equity. These 4 factors can help you invest with long-term confidence.

I also recommend this article by Vito over at The Common Sense Investor:

Top 3 Questions To Ask About Every Stock

]]> By: Drea http://www.businesspundit.com/does-it-pay-to-save/comment-page-1/#comment-8543 Drea Fri, 12 Sep 2008 15:43:52 +0000 http://www.businesspundit.com/does-it-pay-to-save/#comment-8543 You nailed one of the main reasons I really want to learn to be a good investor. I grew up in a family that always saved and lived below its means--it was just the way things were done (my folks are from Europe). Naturally, I do the same...and watch my moola lose its value. I do feel reamed right now, and I know I'm not the only one. Sometimes it doesn't "pay" to follow the rules. You nailed one of the main reasons I really want to learn to be a good investor. I grew up in a family that always saved and lived below its means–it was just the way things were done (my folks are from Europe). Naturally, I do the same…and watch my moola lose its value. I do feel reamed right now, and I know I’m not the only one. Sometimes it doesn’t “pay” to follow the rules.

]]> By: InvestmentPlayground http://www.businesspundit.com/does-it-pay-to-save/comment-page-1/#comment-8538 InvestmentPlayground Fri, 12 Sep 2008 15:06:35 +0000 http://www.businesspundit.com/does-it-pay-to-save/#comment-8538 Great article. I think it's the natural economic cycle that's taking place here - where the US on an extremely long-term path will learn to live beyond their means but by using conservative methods. I don't think we'll ever get our act in shape to resemble Japan or India's cash-rich method of thinking - but buying almost every possible item you can on credit? This era will pass and we'll all say "good riddance." Great article. I think it’s the natural economic cycle that’s taking place here – where the US on an extremely long-term path will learn to live beyond their means but by using conservative methods. I don’t think we’ll ever get our act in shape to resemble Japan or India’s cash-rich method of thinking – but buying almost every possible item you can on credit? This era will pass and we’ll all say “good riddance.”

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