When is the best time to invest?

Warren Edward Buffett is an American investor, industrialist, philanthropist and one of the richest men in the world.
He is also the primary shareholder, chairman, and CEO of Berkshire Hathaway, a holding company with a number of subsidiaries.
He is known for his adherence to the philosophy of value investing and for his personal frugality despite his immense wealth.
As a philanthropist, he has pledged to give away 99 per cent of his fortune to philanthropic causes, primarily via the Gates Foundation.
Born in 1930 in Omaha, Nebraska Mr Buffet became an entrepreneur at age 15 and later received a masters degree in economics from
Columbia University.
Through a series of investments, Mr Buffett has established himself as one of the most successful businessmen in the world.
His fortune peaked at an estimated $62 billion in early 2008, at which time Forbes named him the richest person in the world.
We have put together some lessons from Mr Buffett on investment.
When is the best time to invest?
During a recession. When people are fearful, they tend to make irrational decisions and sell stocks at a price below fair value. If you have cash and time on your side, pick blue chip stocks that are at their lowest.
How can you tell a good company from bad?
If you can’t describe in a few words what the company does, don’t invest in it.
You got to understand and know what a company does before you can become a shareholder.
You don’t have to know how to value all businesses.
Stay within your circle of competence and pick companies that sell for less than what they’re worth.
Research. Buying stocks also requires thorough investigation of the company in which you want to invest.
What should one look out for when investing?
What you are getting for your investment, whether buying or selling.
Do not decide on what to buy or sell based on what is going on in the economy today, that is a mistake.
When picking stock, keep in mind the long-term money you are expecting at any given time.
Challenges?
You will not always get it right in investments and could experience losses.
Despite this, it is important to continue working with the market.
While the market can be challenging, the only way to make money from it is to continue investing.

Survey finds managers at a crossroads with young workers

Kenyan firms must make big shifts in people management to retain a new crop of highly skilled employees coming into the workplace with high expectations, love for speed and responsibility to remain competitive in the labour market, a new survey indicates.
The study by consultancy firm PricewaterhouseCoopers has found that inability of the majority of Kenyan companies to motivate young employees, commonly known as the Generation Y, is raising the rate at which they are changing employers, creating the impression that they are a restless lot.
“Kenyan companies are losing about 40 per cent of their work force due to management issues, making retention an issue that 79 per cent of CEOs worry the most about,” said Wairimu Njage, People and Change manager at PwC.
PwC estimates that Generation Y, comprising people aged below 30 years, currently accounts for 25 per cent of the working population but this number is expected to rise to more than 50 per cent in two years , making it an important demography for business managers.
This generation of workers – born between 1979 and 1990 have been found to enter the workplace with higher expectations and demands than their predecessors, prefer short engagements to long term contracts, seek good perks and require a more relaxed working environment.
This mix of demands and expectations requires complete change in employee reward schemes as the economy moves from the factory floors to a knowledge-based platform.
PwC however found that the high rate of unemployment is stifling the exercise of these characteristics at the workplace causing a major misallocation of human resources that may be costing Kenya billions of shillings annually in unused or underused talent across all sectors of the economy.
“Scarcity of jobs has made Kenya a classic example of an employers’ market, said Kuria Muchiru, Kenya Country Manager at PricewaterhouseCoopers (PwC). “Generation Y workers are being forced to accept jobs they would not consider thereby changing the dynamics within the talent pool.”
Mr Muchiru said this talent mismatch is creating a distinct disconnect between the perception of human resource managers and the needs of the young workers with negative results on employee satisfaction and retention rates.
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Generation Ys are known for their unique perception of work and the workplace that is strange to most managers and sometimes in conflict with established company regulations.
They are, for instance, said to be comfortable working in T-shirts, communicating electronically and looking for flexible work hours that most employers have not provided for.
The PwC report shows that unlike their global counterparts, Kenya’s Generation Y is not necessarily driven by social networking, fast cars and technology gadgets but rather by the urge to grow, gain experience and succeed at an early age.
“For this generation of employees, work is a key part of life. They seek careers and job assignments that are challenging, stretching and intellectually stimulating. They tend to be high achievers and therefore it is important for organisations to engage fully with them,” Ms Njage. “They expect clear road maps for success with clear, consistent and constant feedback.”
PWC says Kenyan employers may be forced to come to terms with new management methods to handle an influx of new workers whose characteristics vary from the current crop of employees.
“The expectations are quite different. They look for immediate compensation - they are more loyal to themselves and are comfortable with human resource managers who are sensitive to their needs,” said David Muturi, the CEO of the Kenya Institute of Management.

Are you disappointed?


If you have ever experienced disappointment in life,  do not worry. It’s very normal to go through times of feeling that something in life stinks and all there is to see and feel is the current mess.

If you have not experienced disappointment in life ask yourself the following questions:
Have you had a challenging day or week? Feel a little tired or discouraged with a current situation? Ready to throw in the towel and quit something?

Here is something neat to ponder during those times, though. When doing battle with discouraged feelings, take a look at this report and reflect on this man’s record of failure. It is a testament to how human beings can learn and grow and win despite the losses and defeats.
imagine...
Failed in business in 1831
Defeated for legislature in 1832
Failed in business again in 1833
Elected to legislature in 1834
Sweetheart died in 1835
Nervous breakdown in 1836
Defeated for speaker in 1838
Defeated for land officer in 1843
Defeated for congress in 1843
Elected to congress in 1846
Defeated for re-election in 1848
Defeated for senate in 1855
Defeated for vice president in 1856
Defeated for senate in 1858
Elected President in 1860
Who was he?
He was a simple, uneducated, country boy who refused to allow his uncongenial circumstances to stop him. He refused to be a victim. He refused to accept failure. He refused to listen to people who told him he was crazy. He refused to stay down when he felt like nothing was going his way.
Simply put, he picked himself up no matter what and kept on going after his dream. He educated himself and did whatever it took to keep moving in the direction of his passions.
Who was he? Abraham Lincoln.
If you reflect back on your life, you can find patterns of the times you grew the most. Many of those times were probably a result of some kind of previous ‘failure,’ maybe even a series of them.
Remember: children don’t fail when they are learning to walk. They fall down over and over again. It is the falling that teaches them and strengthens them.
Each failure is a learning experience. And the faster people pick themselves up, reflect on the past occurrence and go again, the faster they can achieve their goals and dreams.
So with this in mind, choose the one thing that may not be going exactly as you wish right now and do one thing to move you closer to achieving the result you want. And remember, life is about learning and growing.
*Key Points To Consider: We can choose to either see adversity and times of challenge as life simply trying to beat us down, or we can make the decision to look beyond that simple outlook and focus instead on one that will serve us — one that says, the challenges we are experiencing are meant to allow us the opportunity to grow in some way — to emerge stronger, and better prepared for some eventual success that will be ours in the future.
Two very different ways to see things — not easy to do, but one will keep you stuck, while the other will serve you and allow you to become better for having faced it and ultimately overcome whatever challenge life threw at you. That my friend is worth considering! Here’s wishing you much success. Remember, it’s your life, LIVE BIG!

Young Kenyans vying for the Top Position



Armed with big ideas and technology, youth under 25 are 
successfully running their own companies. Photo/FILE
Armed with big ideas and technology, youth under 25 are successfully running their own companies. 



When they talk or walk by, they arouse caution. Kenya’s youth, widely depicted as unruly and often impatient, are a feared lot. And why not?
Almost everyone – from teachers to politicians and religious leaders to the media – feels compelled to give direction to the so-called Generation Y. They have even been christened the “lost generation,” having been raised on cereals, before they learnt to play video games and spend hours on the internet downloading music.
Most of those born in the 1980s grew up with computers and those of the 90s find it hard to imagine life without the internet or mobile phone. As a chief executive officer, you will certainly spend sleepless nights wondering how to absorb such people into your company.
As the entrepreneurial bug defies age, a new worry for managers is emerging, and it’s positive: how to compete with and embrace the young, restless but creative minds. These 20-somethings and even teenagers, in their oversized jeans and “strange” mannerisms like hairstyle, are starting their own companies, swaying a good number of consumers with often fascinating ideas.
Dismissing this generation, it turns out, could be counterproductive. Take Mr Oscar Kimani, 23, who is the CEO of TransTech Investment Ltd, an e-business services firm he set up in 2007. Mr Kimani says he was sent away by a bank when he tried to open a bank account for the company. “I was accused of running a pyramid scheme, since, according to them, there was no way a 20 year-old could have a registered company,” he says.
As everybody worries about what to do with this generation, most of them in either high school, college or university are busy in their dormitories and hostels creating companies or dreaming fancy ideas. Perhaps they are inspired by class-to-grace stories of the likes of Microsoft founder and chairman, Bill Gates, Google’s Larry Page and Sergey Brin and, more recently, Mark Zuckerberg of Facebook.
Kenya’s Generation Y is indeed restless. Mr Kimani registered TransTech while still studying accounts at Strathmore Business School and working part time at FedEx. Besides, he sold ladies clothes. Unlike the older generation who spend days on end drafting business plans and making proposals for financing punctuated with corporate jargon like leveraging and gearing, the young breed of entrepreneurs is very idealistic, carefree and fearless about technology.
Mr Kimani opened the e-business with neither a computer nor formal training computer applications and had to look for the clients, equipment and expertise later. “Actually, unlike many of my agemates,” he says, “I was straight from the village and my first contact with computers was at Strathmore. I got an interest in how it works and I had to train myself how to use it before I could write a business plan.”
He says the internet aspect was particularly fascinating and as he learnt, he got interested in how he could make money out of it. “I just needed someone to get the technical stuff done.” “I may not have the technical training in technology, but I see opportunities that can be exploited using technology,” says Mr Kimani who also owns Unique Africa Safaris, a travel company that uses the power of technology to promote domestic and external tourism.
This company was born out of the national business plan competition, “Chora Bizna,” he participated in 2007. Chora Bizna loosely translates to “write a business” plan. When the business took off much later, he immediately clinched a Sh1 million deal.
The perception society has about young people is somewhat mixed when they deal with them either as employees or clients. Successful entrepreneurs say young people should take one step at a time and venture into business after enough grounding by working for other businesses.
“Some of us started in similar situations,” says Mr Aruni Devani, the managing director and founder of Synresins Ltd, who started his synthetic resins company at the age of 26. “I had one year experience working with a big company and I regretted why I dint take two or three years.”
This kind of hand-on experience is important because, he said, it builds confidence and inculcates business ethics like honest and team work. Mentorship and training alone are not enough, according to Mr Devani, who holds that experience is the best teacher.
“Listening absorbs only 40 per cent and reading about 50 to 60 per cent,” said Mr Devani, a former chairman of the Kenya Association of Manufacturers. “But when someone does something, they absorb 90 per cent.” After managing to buy his first computer for TransTech Ltd and finally putting together a business plan, Mr Kimani got two deals to design a website for Sh58,000 and the next one for Sh80,000.
“While that would have been the moment to relish in my business life, trouble had just set in,” says Mr Kimani. The web designers he had hired to do the work for a 40 per cent share of the contract’s worth disappeared soon after he paid them before doing the job, leaving him to deal with the client.
“It was so hard to deal with the customer, trying to convince them that I was not just another young guy trying to con them. At the beginning of the business, I learnt a valuable lesson, that building a relationship with your clients is more important than the money.”
This is where Mr Devani says trust and integrity count – virtues that locks out most young people from big deals. “A business must develop confidence and reliability,” he says, “because business is not about transactions but it’s a partnership. At 25 or below, it’s not easy to get good lawyers and financiers and that’s why working for two or three years is good to develop your network.”
As an advantage, the young CEOs have age on their side and plenty of time to make mistakes, learn and move on to the next level of the business. “Often they try to reinvent the wheel, which disrupts things and makes them scary. Having energy and vision doesn’t set up a business,” says Mr Devani.
Bank manager dreams big
At only 18, Brian Waweru is the founder and CEO of a school bank, GigaVault, a student-run-business at the African Leadership Academy in Johannesburg, South Africa, where he is studying. GigaVault is a model business that runs like any other normal commercial bank. It runs a cash service that disburses the school’s grants to all students.
The bank has developed an online system where students can request for money or even make purchases online. It also runs a cashless system on campus where other students who run businesses can sell to their colleagues and have the money spent on purchases deducted from their grant without physically handling the money. It then charges the respective businesses for using this “cashless purchases service”.

Moving Youth into Action

It is not everyday that a young person literally lays down his life to empower his peers. After form four, a youthful enterprising man brought together a group of friends and started a programme called Youths in Action. This initiative has impacted to career guidance on sexuality, HIV/ AIDS and other sexually transmitted infections awareness to the Kenyan youth who are hungry for such information. The initiator of the programme, John Njuku has managed to build this programme to massive heights than he had expected.

This programme has managed to tap the expertise from local and foreign volunteers who help streamline the programme’s agenda in schools, hospitals and other institutions
visit http://www.parentsafrica.com/ for more information.

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STARTING A BUSINESS: THE IDEA PHASE

You know you want to start a business, but what do you do next? Here's how to find the perfect idea for your business.

Many people believe starting a business is a mysterious process. They know they want to start a business, but they don't know the first steps to take. In this chapter, you're going to find out how to get an idea for a business--how you figure out exactly what it is you want to do and then how to take action on it.

But before we get started, let's clear up one point: People always wonder if this is a good time to start their business idea. The fact is, there's really never a bad time to launch a business. It's obvious why it's smart to launch in strong economic times. People have money and are looking for ways to spend it. But launching in tough or uncertain economic times can be just as smart. If you do your homework, presumably there's a need for the business you're starting. Because many people are reluctant to launch in tough times, your new business has a better chance of getting noticed. And, depending on your idea, in a down economy there is often equipment (or even entire businesses!) for sale at bargain prices.

Everyone has his or her own roadblock, something that prevents them from taking that crucial first step. Most people are afraid to start; they may fear the unknown or failure, or even success. Others find starting something overwhelming in the mistaken belief they have to start from scratch. They think they have to come up with something that no one has ever done before--a new invention, a unique service. In other words, they think they have to reinvent the wheel.

But unless you're a technological genius--another Bill Gates or Steve Jobs--trying to reinvent the wheel is a big waste of time. For most people starting a business, the issue should not be coming up with something so unique that no one has ever heard of it but instead answering the questions: "How can I improve on this?" or "Can I do this better or differently from the other guy doing it over there?" Or simply, "Is there market share not being served that makes room for another business in this category?"

Get the Juices Flowing
How do you start the idea process? First, take out a sheet of paper and across the top write "Things About Me." List five to seven things about yourself--things you like to do or that you're really good at, personal things (we'll get to your work life in a minute). Your list might include: "I'm really good with people, I love kids, I love to read, I love computers, I love numbers, I'm good at coming up with marketing concepts, I'm a problem solver." Just write down whatever comes to your mind; it doesn't need to make sense. Once you have your list, number the items down one side of the paper.

On the other side of the paper, list things that you don't think you're good at or you don't like to do. Maybe you're really good at marketing concepts, but you don't like to meet people or you're really not that fond of kids or you don't like to do public speaking or you don't want to travel. Don't overthink it; just write down your thoughts. When you're finished, ask yourself: "If there were three to five products or services that would make my personal life better, what would they be?" This is your personal life as a man, woman, father, husband, mother, wife, parent, grandparent--whatever your situation may be. Determine what products or services would make your life easier or happier, make you more productive or efficient, or simply give you more time.

Next, ask yourself the same question about your business life. Examine what you like and dislike about your work life as well as what traits people like and dislike about you. Finally, ask yourself why you're seeking to start a business in the first place. Then, when you're done, look for a pattern to emerge (i.e., whether there's a need for a business doing one of the things you like or are good at).

They Delivered
Here's a business startup story that's a great example of seeing a need and filling it. Entrepreneur magazine is located in Irvine, California, a planned community. Many years ago, there weren't many fast-food restaurants in the business area. Most were across town, where the neighborhoods were. Two young men in Irvine found this lunch situation very frustrating. There weren't many affordable choices. Sure, there were some food courts located in strip centers, but the parking lots were really small and the wait was horrendous.

One day, as they were lamenting their lunch problem, one of them said, "Wouldn't it be great if we could get some good food delivered?" The proverbial light bulb went on! Then they did what many people don't do--they did something about their idea. Coincidentally, they purchased one of Entrepreneur's business startup guides and started a restaurant delivery business.

To date, their business has served more than 15 million people! It's neither a complicated business nor an original one. Their competition has gotten stiffer, and yet they're doing phenomenally well. And it all began because they listened to their own frustrations and decided to do something about them. Little did they know that research cites the shrinking lunch hour as one of the biggest complaints by American workers. Some only get 30 minutes, making it nearly impossible to get out, get lunch and get back on time. So while these young entrepreneurs initially thought they were responding to a personal need in their local area, they actually struck a universal chord.

That is one way to get ideas--listening to your own (or your co-workers', family's or neighbors') frustrations. The opportunities are all there; you just need to search them out. If your brain is always set in idea mode, then many ideas may come from just looking around or reading. For instance, if you had read an article about the shrinking lunch hour, and if you were thinking entrepreneurially, you would say "Wow, maybe there's an opportunity there for me to do something. I should start researching it."

Inspiring Moments
Inspiration can be anywhere. Here's another classic startup story: Ever get charged a fee for returning a video late? Bet you didn't do anything about it. Well, when Reed Hastings got a whopping $40 late charge, instead of getting mad, he got inspired. Hastings wondered "How come movie rentals don't work like a health club, where, whether you use it a lot or a little, you get charged the same?" From this thought, Netflix.com, an online DVD rental service, was born. From its start in 1999, Netflix has grown into a big business with revenues topping $1.3 billion.

Getting an idea can be as simple as keeping your eyes peeled for the latest hot businesses; they crop up all the time. Many local entrepreneurs made tons of money bringing the Starbucks coffeehouse concept to their hometowns and then expanding from there. Take Minneapolis-based Caribou Coffee. The founders had what they describe as an "aha moment" in 1990, and two years later launched what is now the nation's second-largest company-owned gourmet coffeehouse chain. Other coffee entrepreneurs have chosen to stay local.

And don't overlook the tried and true. Hot businesses often go through cycles. Take gardening. For the last few years gardening products and supplies have been all the rage, but you wouldn't consider gardening a 21st century business.

In other words, you can take any idea and customize it to the times and your community. Add your own creativity to any concept. In fact, customizing a concept isn't a choice; it's a necessity if you want your business to be successful. You can't just take an idea, plop it down and say "OK, this is it." Outside of a McDonald's, Subway or other major franchise concept, there are very few businesses that work with a one-size-fits-all approach.

One of the best ways to determine whether your idea will succeed in your community is to talk to people you know. If it's a business idea, talk to co-workers and colleagues. Run personal ideas by your family or neighbors. Don't be afraid of people stealing your idea. It's just not likely. Just discuss the general concept; you don't need to spill all the details.

Just Do It!
Hopefully by now, the process of determining what business is right for you has at least been somewhat demystified. Understand that business startup isn't rocket science. No, it isn't easy to begin a business, but it's not as complicated or as scary as many people think, either. It's a step-by-step, common-sense procedure. So take it a step at a time. First step: Figure out what you want to do. Once you have the idea, talk to people to find out what they think. Ask "Would you buy and/or use this, and how much would you pay?"

Understand that many people around you won't encourage you (some will even discourage you) to pursue your entrepreneurial journey. Some will tell you they have your best interests at heart; they just want you to see the reality of the situation. Some will envy your courage; others will resent you for having the guts to actually do something. You can't allow these naysayers to dissuade you, to stop your journey before it even begins.

In fact, once you get an idea for a business, what's the most important trait you need as an entrepreneur? Perseverance. When you set out to launch your business, you'll be told "no" more times than you've ever been told before. You can't take it personally; you've got to get beyond the "no" and move on to the next person--because eventually, you're going to get to a "yes."

One of the most common warnings you'll hear is about the risk. Everyone will tell you it's risky to start your own business. Sure, starting a business is risky, but what in life isn't? Plus, there's a difference between foolish risks and calculated ones. If you carefully consider what you're doing, get help when you need it, and never stop asking questions, you can mitigate your risk.

You can't allow the specter of risk to stop you from going forward. Ask yourself "What am I really risking?" And assess the risk. What are you giving up? What will you lose if things don't work out? Don't risk what you can't afford. Don't risk your home, your family or your health. Ask yourself "If this doesn't work, will I be worse off than I am now?" If all you have to lose is some time, energy and money, then the risk is likely worth it.

Determining what you want to do is only the first step. You've still got a lot of homework to do, a lot of research in front of you.

HOW TO START A BUSINESS FROM SCRATCH

Are you driven to create the new business that you have been thinking about or are you just bored with your job and think that a new business will be less work?

Okay, so you have a great idea for a business start-up, but how far are you willing to go to make that idea for your new business into a money maker as opposed to a dream?

There are many questions that you have to ask yourself when you decide to Start your own business. You have to be totally committed to the idea and willing to work through any problems. If you think that your startup small business is going to be easy, think again. It is difficult, but rewarding at the same time. You have to be prepared to meet any and all challenges that lie ahead or your business will not be a success.

When you have your own small business, expect to work hard and long hours to get your business going. You will be on your own, without anyone holding your hand along the way. The profit that you expect to make may very well be in the future as most businesses do not turn a profit in the first year. But, if you are strong willed and determined to succeed in your business, you will be successful.

Running your own business start-up is not only financially rewarding, but personally gratifying. You are working for yourself, to make yourself rich instead of working to make someone else money. Those who are the most successful in the United States are those who have an entrepreneurial spirit. There is an old saying – “You never get rich working for someone else.” This is true. If you want to be truly successful, you have to have the gut to start up your own business, but be prepared to take on the challenges as well as reap the rewards.

Commitment is key to being successful in your own business. Before you start looking for business finance, be sure that you are totally committed to success. You need to be committed and passionate about your business idea and be willing to give it most of your time. You should start a business that you love, that you will want to continue to work on because you believe in the idea and the need for the business. Remember – if you are doing something that you like, you will never really work a day in your life. Those who succeed in their own business love the business that they are in and enjoy the work that it takes to build the business idea into reality.

Before you start your own business, ask yourself these questions:

  • - Can you put in the time it will take to make your business successful?
  • - Are you able to take on the challenges of a new business?
  • - Do you have people who will stand behind you with your new business, such as family and friends?
  • - Take this short quiz to see if you are the entrepreneurial type.
  • - Get a hold of potential clients or customers and talk about the business to determine their interest.
  • - Do a marketing study such as offering sample products or services on a trial basis to see the general interest in your business. .
  • - Research your competitor’s businesses so that you can better understand your own business prospects – learn their strengths and weaknesses and see how you
    can capitalize on strengths and eliminate the weaknesses in your own business.

The On Demand Global Workforce - oDesk