Siegel, Jeremy J. Stocks for the long run: the definitive guide to financial market returns and long-term investment strategies. New York: McGraw-HillProfessional, 2008. This book provides a comprehensive understanding and explanation of investment into stocks and how investors can actually devise their strategies to successfully profit from them. This book starts with a historical introduction of how the bonds and stocks have provided a return to the investors and whether stocks are a better investment vehicle than bonds or not. The first part of the book therefore offers historical trends as to how the bonds and stocks have performed and what are the key reasons as to why stocks have traditionally returned high. The subsequent parts of the book are based upon the different styles of investing into stocks such as value stocks, the impact of economic environment on the valuation of the stocks and how an investor can actually build wealth through the stocks.
This portion therefore outlines as to what strategies can be successfully implemented in order to find a stock portfolio which returns the desired results to the investors over a longer time horizon. This book therefore offers a critical insight into the way stocks work and return value to their holders.
MacMillan, Douglas and Brian Womack. "Facebook Said to Be Planning $10 Billion IPO. " 28 November 2011. Bloomberg BusinessWeek. 30 January 2012. This article discusses the IPO of the largest social networking site in the world i. e. Facebook. com though the site has not yet officially been listed on any stock exchange however, its IPO is soon to be launched. This article therefore discusses the overall amount for the IPO and also sheds light on the prospects for the investors to invest in the largest social networking service in the world. Considering the overall user base of the site and its acceptability as the leading service provider, investors therefore will be tempted to invested in a growth stock.
Growth stocks often don’t pay much dividends as companies reinvest the cash back into the business to finance the future growth prospects of the firm. Such strategy therefore allow growth firms to actually grow while at the cost of not paying to the shareholders however, shareholders rely on capital gains to be made in future. The article discusses that the overall valuation of Facebook will be approximately $100 Billions thus making it one of the largest capitalized firms in the industry.
Such high market capitalization therefore can surely serve the investors in terms of returning the investment at a higher rate through capital gains. Bazzell, Barry. "Chip Maker Stock Soars 130% In Three Months. " 25 Feb 2011. Business Insider. 30 January 2012. This article discusses about the investment into semi-conductor industry in general and the investment into NXP Semiconductors in particular.
The author has discussed about the rise of the semiconductor industry in the recent past due to increasing use of smartphones. Semiconductor chips are used in mobile phones to increase their efficiency and speed while at the same time giving them enough support to perform complex and high tech functions. Further, the NXP technology is based upon allowing cell phones to process cash and credit transcations thus making cell phones electronic wallets to spend cash and credit. NXP Semiconductors is a Netherland based firm and it has outperformed the market and its value has increased by 130% which is more than the increase in the value of any firm in the high-tech industry. This article further discusses the plans of already established firms to initiate the mobile payment services and how they can be integrated with the existing technology to allow the firms to gain further market in the industry. The article therefore provides a comprehensive understanding of how the market works and who are the leading market players.
Article further discusses as to how the investors, based upon the growth potential of these stocks can actually take advantage of the growth phase.
This article however, fails to clearly outline the key risks of investing into high-tech firms and also did not provided any historical background of how the hi-tech bubble burst during 1990s. HARLIN, KEVIN. "Industrial Firm 3M Sees Growth, But 2012 Outlook Key. " 25 Jan 2012. Investors. com. 30 Jan 2012. This short article provides information about the growth prospects of 3M – a firm which is an industrial conglomerate and into the consumer goods industry. 3M is the maker of different brands including Post-it Notes.
The article suggests that the overall earnings of the firm rose by 3.1% however the growth prospects are still considered as low due to the overall economic situation prevailing into leading world economies. The article further provides details about how Tsunami in Japan and massive flooding in Thailand has been key factors in recent decline of the performance. These factors therefore can critically outline that the firm may be at risk due to external factors. Author however, has suggested that the value of the stock is increasing due to recovery in US market and investors are considering this stock as a bargain purchase.