How to Find Great Stocks to Invest In

The mechanics of successful investing is pretty simple. Buy low and sell high. The less simple part has to do with what to buy and when to buy it. In other words, selection and timing.

Stock selection and timing are really closely related. The key is recognizing both current value and potential value. If the current value is less than the potential future value, you’ve got a winner. And of course if the opposite is true you could still have a winner by shorting the stock (betting it will go down).

Finding Stock Opportunities

There are literally thousands upon thousands of stocks out there. So first, you need to find them, and find out a little about them …

1. Yahoo Finance. This is one of my favorite places to do stock research. It’s full of big breaking news on companies and general economic trends. Their stock quotes are 20 minutes delayed but they give you company profiles, key statistics, info on competitor companies, links to news and blog commentaries and quotes on options pricing. Yahoo Finance is a great place to start.

2. Online business news. Big media players like The Wall Street Journal and Forbes are great places to find out who’s being talked about and what’s being said. You can also check out Investor’s Business Daily, The Street, and The Motley Fool. I don’t subscribe to any of these sites because, to be honest, I don’t want to be sold on some amazing “golden opportunity”. That’s a good way to lose money. I want the public news. The big chatter. I want the hook, not the line and the sinker.

3. The boob tube. It’s also good to tune into the tube and watch the business reports on BNN (Canadian Business News), CNN, and MSNBC.

Determining Value and Potential

There are companies that lose money but their stocks perform very well. At least for a while. At the same time, there are companies with solid business models that nobody cares about. What’s the deal?

A company that actually produces a profit is going to offer you less risk. Especially in the long run. Plain and simple. But regardless of that, a stock’s rise is heavily based on confidence or market sentiment.

If a lot of people believe the company has great potential, up goes the stock. It’s demand for the stock and belief that it will continue to go up that pushes up the price. At the end of the day, nothing else matters nearly as much as confidence.

This is why I don’t like super-secret “tips”. I want a stock that everybody knows about. That everybody is talking about. A stock that everybody is buying which drives the price up.

If enough people believe, it will go up.

And if those beliefs are based on sound fundamentals, it’ll keep going up. If not, it’ll go down, and probably a lot quicker than it went up.

From Bourne Identity To Leadership Ultimatum

The Bourne Ultimatum is coming to theaters this summer. There’s a sneak-peek trailer on firstshowing for this third episode of the Jason Bourne series starring Matt Damon. It looks good.

At first, I thought I should post this in the Whatsis category of Zoomstart which is just an archive for cool stuff. And then I figured, since I’m a big fan (of the first movie, not so much the second), I’d take some lessons from the Bourne Identity and turn them into a mini ultimatum … er … ultimate guide to leadership. Sort of like what I did with Frank Miller’s 300.

So “Sit down, strap in, and turn on all you got”.

Jason Bourne On Kick Butt Leadership

1. If you lose your identity, go find it. It happens to every leader. You might lose faith in your own ability. People might question or challenge or lose confidence in you as a leader. Take the time. Reach out. Go find that person that was you again.
2. Maintain balance. You’ve got your good guys, your bad guys, your love interest. All play an important part in maintaining a healthy balance. Balance gives you a diverse network of resources to draw on. Balance changes things up and prevents you from getting tunnel vision by focusing too much on one thing.
3. Make the most of what you have. Maybe you brought a ballpoint pen to a gunfight, or a Mini Cooper to a car chase. Whether you’re under cost controls or you just got caught short-handed, you’ve got what you got. Get creative and make the most of it.
4. Take the fight to them. The best defence is a good offence. You can sit around and let whatever happens happen. Or you can take the initiative and make things happen. Do that, and your actions are the driving force that decides WHAT happens. And when.
5. There’s always another chapter. The story’s never over. No matter what happens, the worst thing that can happen is that you learn something and you do better next time. Leadership is not a destination, it’s a journey. And there’s always another adventure around the next bend.

10 Invaluable Life Lessons You Can Learn from the Movie Troy

The great thing about classic tales is they’ve stood the test of time. And so has all the great advice you can get from them …

1. Never judge a book by it’s cover. Just because a guy is wearing a leather skirt and a funny hat, doesn’t mean he can’t still kick your ass.
2. Never send a boy to do a man’s job, (Achilles’ cousin gets killed by Hector while pretending to be Achilles). If you’re at that “almost a man but not quite” age, just know, we’ve all been there. We got razzed for doing some of the dumbest stuff you can imagine. So will you.
3. Never accept gifts from your enemies. Especially if it’s a wooden horse. Remember, Sun Tzu said “keep your friends close, and your enemies closer”. Well, this is what he was talking about.
4. Always give gifts to your enemies. Especially wooden horses.
5. Make short term and long term plans. Sure, there’s a guy standing right in front of you with a spear. There’s also a guy way up ahead with a bow. Be prepared for both challenges.
6. Burn your dead. Metaphorically speaking … maybe your house is full of clutter or you’ve got a list of must-do tasks sitting in the procrastination zone. Get rid of that stuff before it starts to stink up the joint.
7. Never follow a fat king. Guys like Agamemnon care about one thing; Agamemnon. Good leaders fight at the front of the pack and they know the very real consequences of their decisions.
8. Enjoy the little things. Once in a while it’s good to sleep till noon. Bear skin rug and beautiful nymphs are optional. But highly recommended.
9. Nothing is absolute. Not even the walls of Troy; In time, all things fall; stocks, business models, civilizations. You should always have a secret back door out of the city or an exit strategy.
10. Women. Let’s just say it’s complicated. Very, very complicated.

5 Things Every CEO Can Learn From Frank Miller’s 300

Business is a competitive sport. Sometimes it can get bloody. Sometimes it should.

So it’s no wonder that quotes from great works such as Sun Tzu’s the Art of War are often worked into insightful business ideologies. The movie 300 carries many great lessons that can be applied to business. Especially in the area of leadership.

About Frank Miller

Frank Miller is an amazing writer. He has written some of the most influential graphic novels in the medium. I’ve always been a big fan. If it’s true that a picture is worth a thousand words, it’s also true that one of Frank Miller’s words is worth a thousand pictures. It’s great to see his work (Sin City, 300) on film.

300 is based on historical events. A small force of Spartans held off the massive Persian army at the battle of Thermopylae until help could arrive.

The Lessons Of 300

The original graphic novel is broken into 5 chapters. Here they are with the wisdoms they bear:

1. Honor. There’s a big difference between ethics and integrity. Know the difference. Be open. Take the high road.
2. Duty. Not everyone practices honor. Know when it’s time to cut integrity loose and get ethical.
3. Glory. Celebrate your successes to build momentum. Capitalize on your successes to create more of them.
4. Combat. Stand in front of your army and you’ll always have an army behind you.
5. Victory. Sweet isn’t it. Now go back to number 1 and do it all over again.

4 Ways to Invest in a Bear Market

Thanks to the rising price of oil and the mortgage meltdown the stock market has been what the British would call “dodgy”. There’s a lack of confidence in the ability for companies to perform and earn, and that’s driving the markets down.

But it’s not all bad news. Bear markets can bring good investing opportunities and there are numerous strategies you can employ to minimize the erosion of your portfolio and even make some money …

1. Don’t invest. A lot of investment funds are holding a larger than normal cash position right now. This is simple cash preservation and the idea is to wait out the bear; when the markets are going up, it’s because stocks in general are going up, and your chances of picking the winners are much better.

2. Go short. Shorting a stock is betting the stock will go down. You can place your bet by buying put options which is the option to sell a stock at a price in the future that you think will be higher than it will cost to buy. You can aso write call options. By writing a call, you’re giving someone else an opportunity to buy your stocks at a specific price and if the stock goes lower, the option is useless and you keep the premium (the price of the option) when it expires.

3. Finding the winners. There’s always smart money somewhere. After the dot com crash, massive amounts of capital went into property (and fueled that bubble). You want to look for those opportunities rather than focusing on the negatives; oil has been on the rise. And with it, alternative energy plays like solar have held fairly strong. Look for companies that are solving the current problems.

4. Go bargain hunting. This is probably one of the best strategies you can employ in a bear market. After all, it’s all about buying low and selling high. Companies that are holding strong against the bear or companies with low price/earnings ratios that are primed to bounce back can usually be bought at a decent discount. Also, stocks that are down while the company is still earning well and paying a good dividend can be a great investment.

There are risks to all these strategies, just as there are risks in a bull market. But using bear market strategies in a bear market is one of the keys to investing success.

And that’s no bull.

2 Massive Reasons to Practice Short Selling Stocks

Most people think about trading as simply buying a stock and profiting when the stock goes up. Well, it’s time to change your thinking because that’s only half the game. That’s only 4 1/2 innings of a 9 inning game.

You ever play half a game and win it?

The First Reason to Short Sell

Stocks, property, commodities … toothbrushes; when you add up everything of intrinsic value in the world, at the end of the year it’s worth about 3 to 4% more than it was exactly a year ago.

That’s right, it’s inflation. The net result of all the triumphant gains and all the catastrophic losses when you look at the big global picture is a measly 3 or 4%, otherwise known as the rate of inflation. So when you see companies on the stock market making gains of 10, 20, 50, 200%, it means something else, somewhere, somehow … has to go down.

Or else we’d all be paying $12 for a toothbrush.

So other than that 3 or 4%, half of everything that happens in the world of investing involves losses. Price drops. Devaluations. In short, the market goes down. It’s half of the entire game. Half.

With short selling (betting a stock will drop), you can play that other half.

The Second Reason to Short Sell

You ever get the chance to talk to someone really successful? And all you want from them are those 7 magic steps that will allow you to do what they do with the same great success. And they talk about everything EXCEPT how they do what they do.

And it sucks. You think they’re just not willing to give you the “secret recipe”. Well there’s actually a lot of value in what they have to say, no matter what it is. Because it’s all part of their mindset. And those magic steps to success that they have; they come from that mindset.

And that’s what short selling gives you as an investor. It changes your thinking and gives you a fuller, more complete mindset…

• You’ll realize just how easy a great stock from a rock-solid company can go down the tubes.
• You’ll build a better understanding of fundamentals and hype, and how they make stocks go up AND go down.
• You’ll start to learn different hedging strategies that can mitigate your losses if a trade goes sour.

And of course, short selling means you’re never stuck playing just half the game. So grab your bat. You’re up.

5 Great Job Hunting Strategies that Will Get You Hired

I talk a lot about business and entrepreneurship, but sometimes you just need a job. And finding a good one in a “layoff economy” is not always an easy thing. You need strategies that work and you need them now.

To start, you want to keep some essential facts about job hunting and the hiring process in mind:

• 90% of jobs are not advertised. This is huge, and it means newspaper classifieds, Craigslist, and the big career websites are only telling you about 10% of the jobs out there.
• There are 3 gateways to get through. The first is getting your resume looked at, the second is getting an interview, and the third is getting hired. You have to get through all 3 gateways to get the job.
• Companies want solutions to problems. A lot of times, a company will advertise a position but end up not hiring. They end up finding another solution because they don’t just want a warm body; they want a solution to a specific problem.

Just understanding these key points is critical to your job hunting strategy. It tells you where to look for a job, and how to present yourself for maximum results. So put these 5 strategies to work and let me know how your job hunt goes …

1. Get on Top of Your World

Communication has 3 components; body language, voice tonality, and the words you use. Your state of mind affects all these things either positively or negatively, so before you even write your resume or start your job search you need to be in the best frame of mind you can be.

This means sweeping away stress and anxiety, and boosting your confidence, level of happiness, and your go-get-em attitude. Here’s a few ideas to help you pump yourself up:

• Get active. Run, walk, bike, dance, pump some iron … anything to get your blood pumping and the “runner’s high” working in your favor.
• Get procreative. Put together a romantic evening with your significant other and make it a night to remember. Guaranteed to make you forget everything else.
• Have a play-day. Take the family out or go out with friends and just have a blast doing something new and fun.
• Do something selfless. Help someone out and expect nothing in return.
• Look good to feel good. Get a haircut or go to the spa for the afternoon. Then, buy a few new clothes to help you look your best.

2. Walk the Road Less Travelled

We know that only 10% of the jobs out there are ever advertised. We also know that 90% of the people out there are competing for those jobs; these odds are not in your favor. And getting a direct referral from someone pushes you right past gate one (getting your resume read) to gate two (the interview). It can even push you right into gate three (getting hired).

This means network, network, network and it’s how the best jobs are always found:

• Talk to your friends and family. Hit every party and group gathering you can.
• Play catch-up with former employers and colleagues.
• Attend conferences and events related to your field.
• Check out community job fairs.
• Talk to people everywhere; the butcher, the baker, the candlestick maker. Just connect, make conversation, and look for opportunities.
• Research companies you’re interested in and start cold-calling them. Ask for the HR person, turn on the charm, and talk to them about any positions they’re hiring for.

3. It’s Not a Cover Letter, It’s a Sales Pitch

The best cover letters I’ve ever seen come from marketing people. They know how to sell it, and no matter what kind of job you’re applying for, you need to sell yourself with your cover letter.

Remember, companies are looking for a solution to a problem. And many times, if they don’t see the solution in any of the resumes they get, they just put off hiring someone. No interviews, nothing. Your cover letter needs to convey that you’re the solution to their problem.

1. Figure out the “real” problem the company needs to solve. They might need specific expertise or experience. They might need better efficiency or higher quality. If you know the job you’re applying for well, you already understand the common pitfalls and challenges that companies are dealing with.
2. Highlight yourself as the solution. With a few brief bullet points, talk about what you can bring to the job that will solve their problem. Don’t be arrogant or wishy-washy; be confident, factual, and positive. And describe the real benefits that hiring you brings.
3. You’re talking about what you can do, not what you’ve done. Unless you’re name-dropping, simply refer the employer to your resume for more detail on your experience, education, and accomplishments.
4. Close your cover letter by asking for an interview to discuss the position, restating your contact number and email address.

4. Your Resume is You

If you can’t get an interview through a direct referral, your resume has to introduce you to the employer. And you’ve got some more sales pitching to do. While your cover letter is selling the benefits of hiring you, your resume is selling the features you come with; education, experience, and key accomplishments.

Putting a resume together is pretty straight forward because it’s simply a record of what you’ve done. But keep these points in mind:

• Keep it neat and easily scannable/readable whether it’s being read onscreen or printed out. Also, stay away from crazy fonts or anything that’s distracting from the content.
• Fill any holes or “lost time” in your history. If you have to do this, rather than stating this year to that year, state the number of years you were employed at each company.
• Fit in with the company’s business culture. For example, a non-union company won’t be impressed if you flaunt your union credentials. It scares them. And the opposite can also be true.
• Tailor your descriptions of duties, accomplishments, and skills to the job you’re applying for. You want to talk about the things you’ve done that are most relevant to what you will be doing.
• Use your references up front if it will help. Generally, it’s good practice to finish your resume with “references available upon request”. But, if there’s a chance a little name dropping will help you make a connection, include your references page as well.

5. Kick-Ass Interviewing

If you’ve gotten to the point of getting an interview, you’re more than half way there. And even if you’re up against other applicants who are better qualified on paper, the interview is about much more than that. It’s about you. It’s about what you can bring to the job. And it’s about making the employer believe in you.

• Sell yourself first. Law 14 of The 21 Irrefutable Laws of Leadership teaches us that people have to buy into you before they buy into your ideas. An interview is that kind of feeling-out process. It’s not all business; you have to get to know each other with a little casual conversation too. Be likeable and real. Just leave your funny bone at home; some people don’t like funny.
• Be interested. Look for things you know about when you go in. These might be customers or suppliers you’ve dealt with before, equipment you’ve operated, or a process you have experience with. Ask questions and relate your own helpful and positive experiences to those things. A little “shop talk” goes a long way.
• Be confident. Anything you don’t know that’s part of the job is something you can learn. Anything about the job that doesn’t appeal to you is something you can change later or adapt to. Fear itself is always the only thing you need to fear. If you need a boost before the interview, hit strategy #1 quickly and go in there while you’re on top of the world.

So there you go. A job search is basically marketing. I think you can see that understanding what an employer needs will help you immensely. Looking in places where jobs are best found will also help you immensely. And being at your best throughout the whole process will help you … let’s hear it … immensely.

Now go get ‘em.