The exchange rose from 2003 to the end of 2006, in those years my return portfolio is 25% - 35% per year, after 3 years of my investment portfolio is in a 80% increase. At that time, I thought that I, like Warren Buffett, I am sure that many investors think the same way, 4 years, during the bull market.

In recent times the market average, a significant part of my past was given the benefit of the market.

Portfolio return: Alpha 20% + 80% beta
According to scientists, the return of the portfolio consists of 20% alpha-and beta-80%. This means that if an investor has a good stock picker, it could be up to 20%. But if the whole market is slowing down, his back still from May 80% of the party and finally a further loss. I think that what is happening to the value of many investors.

Investors benefit not only the SELECT key stocks strength, they must know when to be fully invested and time to improve their cash-standard.

A good broker
In my opinion, with a good mediator as a consultant is very important for the retail investors. My broker has asked me to shares in March-April, claiming that the stock market has bottomed and evaluation is cheap. If I thought my bag, then burns a big hole.


If you ask your broker to buy shares during this recession, what, it's not a good or a consultant, he brings their interests in front of you.

Recently I met with my friend, stockbrokers, already 15 years in the industry. He said he asked his clients to acquire at the beginning of the year.

Defensive stock
He currently advises clients to buy shares of the defence. Its stock Defense Minister recommended that name, which was trading below its book value and dividends at a rate of 10%. His logic is that if the share is lower than book value, then the likelihood of a recurrence. If there is no control, you have a high dividend.

Private Investors
Our debate moves to speak of small investors. Small investors are generally buying the bull finally bought at high price and possibly losses. According to him, as private investors to buy small caps.

Only small cap and a single recommendation
He said there is a particular small capitalization, it is interesting. The company increased its revenue, profit and net profit for the last 6 years. The Director-General holds 37% of the shares. Stock trading only 5.90 P / E.

Dividends of activities is 7% and the payment of dividend increases since 1999. He advises customers to buy these securities, even if the share price by 20%.

Coincidently, I have held these securities in its portfolio, and I fully share his opinion on the stock markets.

No elaborate
My friend did not believe that this market has advantages. He has a unique way to assess where the bottom of the market. Now it is on the market 15 years.

It took 5 years for the economy, in the art. With 15 years experience in the area, he shows that he rose to 3 cycles.

In the long term, equities --
He said that some of his customers are not well informed investors and have no deep pockets. It is therefore advisable to buy blue-chip shares, which will be held prior to retirement.