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Warren Buffet Investment Style - Invest Where You Spend

Most of us have heard of Warren Buffet - he is one of the richest men in the world. His company, Berkshire Hathaway Inc, has made its shareholders multi millionaires. It is Buffet’s investment style that has made this possible. Many books have been written about Buffet’s investment style and his methodology in picking stocks [...]

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• Another initiative announced in the Federal Budget 2008 is the 'First Home Savers Accounts'. This initiative will help a lot of families who are struggling to save up for the deposit needed for their first home. 'First Home Savers Account' provides its account holders a tax effective way of saving for their first home. Who Is Eligible* Anyone between 18 and 65 who have not previously purchased or built a first home to live in. * Only for Australian Residents. Features Of The Account* The Government will contribute 17% of the first $5,000 contributed annually by the account holders. This $5000 is indexed - so this means it is adjusted to inflation. So it will be less than $5000 next year and less than that the following year... * Once the account reaches $75,000, Government will stop contributing to the account. * Any investment earnings (like interest) will only be charged 15%. * Your account balance will not be included in any income and means test (income and means test that is used for other Government payments like Family Tax Benefit etc) * When you withdraw the amount from the account for purchasing your first home, the withdrawal amount will be tax free (provided you have contributed atleast $1000 in each of the last four years - this means to get the withdrawal tax concession, you have to keep the account open for atleast 4 years).. Words Of Caution* This money has to be used only to purchase your first home - and the home has to be the one you will be living in at least for the first 6 months of purchase. * Only the people who meet the eligibility criteria can open this account - otherwise the Government has warned that huge penalties apply. * If for any reason you don't wish to use the money for your home any more then the entire money will be transferred to your superannuation fund. You will have no access to the account. This seems to be an excellent investment option for all the families who are yet to purchase their first home. If you are one of those families, open the account and make use of the contributions and tax concessions. My understanding is that all Banks, Credit Unions and building societies offer these types of deposit accounts. Since they are just deposit accounts the interest rate might not be very high...However apparently life insurers and friendly societies can offer some investment linked accounts...So shop around and check the rates before you open this account. #
• In the new Federal Budget, the Government has introduced a 'Teen Dental Plan'. I should have added this new benefit when I blogged about Federal Budget And Families, but I was not aware of it then... The Government will provide $150 for each eligible teenager (aged between 12 and 17) towards an annual comprehensive dental check - comprising oral examination, clean, scale, and x-ray. Preventative oral check up will prevent cavities and other dental diseases, which might need more expensive dental treatments later on. The comprehensive checkup will cost around $300 and Government will be refunding half of the cost. The rebate should hopefully encourage families to get a dental checkup done for their teen kids. This rebate will be means-tested - only families with a combined annual income of about $155,000 or less will qualify. #
• For the past 12 years, Merrill Lynch and Capgemini have been releasing a very comprehensive report into the factors that drive and inhibit wealth generation and how these factors have been affecting the high networth individuals across the world. The report is called the 'World Wealth Report'. A few weeks ago the 12th Annual World Wealth Report was released. Here are some interesting facts about Australia and the rest of the world: 1. In 2007, India led the growth in High Networth Individuals...The number of High Networth Individuals in India grew by 22%. High Net Worth Individuals hold atleast USD 1 million in assets (excluding primary residence). 2. In 2007, High Net Worth Individuals invested primarily in less risk investments - like fixed income securities, cash/deposits...Their investments in 'green products' increased during the year. Their real estate investments decreased. Their investments in 'Alternate Investments' (eg hedge funds) reduced. 3. The number of these high networth individuals increased by 6 per cent last year to 10.1 million. They however account for just 0.15 percent of the world's population of 6.7 billion. 4. There are around 172,000 high networth individuals in Australia. 5. In 2007, the number of high networth individuals in Australia increased by 11,000. 6. Australia holds 10th position in the global rich list 7. United States has the highest number of rich people - 3.03 million millionaires. 8. The report predicts that this year as signs of financial recovery appear, these individuals will slowly move away from fixed interest / cash and move more towards investments offering higher returns. #
• I wear prescription glasses...And some times when I have patience I wear contacts. Anyone who wears glasses knows how expensive they are. Even if your private health insurance covers them, you still have to spend a significant amount of money to get a pair. Recently I read an article about an entrepreneur called Kevin Reece and his new website called Glasses Online, which sells glasses at a price significantly lower than its retail counterparts. I decided to check it out and here is the summary of what I found: 1. The website sells prescription glasses at a huge discount. It can afford such low prices because there is no rent for retail space and there are no huge mark ups (most retailers apparently have huge mark ups and hence their prices are so high). 2. There is a huge variety of glasses you can choose from. The glasses are divided into 5 categories: Standard, Semi-rimless, Bendable, Designer or Rimless. The prices start from $65. 3. Your first stop has to be your current optometrist...Approach them and ask for your prescription. They have to give you a copy of your prescription, even if you don't buy glasses from them. I don't buy glasses from my optometrist and have never had any problems getting a prescription from them. 4. Next hop on to Glasses Online and register - a very quick and easy process. 5. Once you have set up your account, you will find a section to enter your prescription details, click and enter your details- again a very simple and easy process. 6. And now the fun part - browse through the huge variety of glasses and pick the one you most like. All the glasses come with measurements. So pick one that matches your measurements....And how do you find out your measurements - Most frames have three measurements on the inside of an arm. So if you are wearing glasses currently, then remove the pair, look on the inside of the arm and note down the measurements. My pair had the measurements. I am not sure how to find them if they are not on the inside arm or if you don't currently wear glasses. 7. Once you are happy with the selection, go ahead and order. 8. The glasses will be delivered to your door (not straight away - not yet anyway) I found the whole process very straightforward and easy to use. You can't however try on the glasses before you buy but that is the nature of online shopping. If you must try them on before you buy then obviously this is not the shopping experience for you. But I am not very particular about the 'trying part' plus the huge savings won me over... #
• Find out more about the green / eco friendly loans. #