Cash is king if you know how to use it!

After having a two week holiday all around the Nordic countries, I had the time and pleasure to enjoy many of the fruitful conversations with my beloved aunt, she knows my purpose, One Million Euros in less than five years...the Holliday was awesome, in fact I haven't been able to sit and recapitulate until now I have been busy with the pleassures of life.

During all this time I was totally surprised that Hill Harper a New York Times Bestselling author, with titles including The Conversation, Letters to a Young Sister, and Letters to a Young Brother, has contacted me. Hill is a graduate of Harvard and Brown Universities, and when he's not writing, he stars on CSI: NY. Hill has contacted me to write a review of his newest book The Wealth Cure which looks at wealth as a reward of a gratifying life full of rich experiences, instead of in the monetary sense of it. While he does share ways to create financial stability, he reflects upon the idea that there is much more to personal wealth than money. The Wealth Cure came out August 23, 2011and it's going to be my pleasure to review his book in my blog soon.

Also Thomas Herold, Wealth Educator and Financial Author has contacted for the same purpose a review on his new book Building Wealth with Silver His new book reveals the most crucial facts on what’s happening with the world economy. How we got into this mess and what’s likely to happen in the coming years. It’s an essential guide that helps people protect their money from inflation. It also gives profound insider tips on how to make a fortune by investing in silver now.

But on the Stock Market arena I have to say it straight forward, right now it is advisable to cash out immediately I know I shouldn't be saying this because I love the game but I just did, I sold almost all my positions in the Stock Market because I just got the idea that we as humans we respond to all the social interactions of the external influences meaning that now summer is gone and difficult times are approaching but we have to remember the fact that when there are losers there are also winners so better be on the right side of the spectrum.

Investors seem finally to be taking the full measure of the panoply of risks and the exceptional uncertainty they face. What are their options in the current context?

Gold, perhaps the oldest refuge of nervous money, has attracted enormous interest from investors who have been rattled by the financial crisis. As of Thursday, gold’s annualized real return over the past five years is a stunning 18.3%. That rise has pushed gold into bubble territory, diminishing its claim to safe haven status; putting money into a bubble is hardly a prescription for capital preservation.

The yellow metal is even overpriced against our second candidate, the Swiss franc—despite the fact that the franc itself also looks overheated, as Buttonwood remarked last month. The Swiss National Bank, which is not prone to hyperbole, called its currency “massively overvalued” and promptly cut the target range for its key policy rate to 0.00-0.25%. The franc has appreciated by close to 40% against the euro since January 2010.

Finally, Treasuries are a reflexive choice in a crisis. Sure enough, the 10-year yield fell by roughly 20 basis points (yield is inversely related to bond prices), but locking in a 2.40% nominal yield is more akin to surrender than a genuine defensive strategy. Naturally, you can sell the bonds before they mature i just did, but that leaves you exposed to price risk.

In the flight to safety, however, investors are overlooking one asset class: Cash. Not all investors, mind you. The Quantum Endowment Fund—George Soros’s vehicle—is reportedly 75% in cash. At FPA Capital, Robert Rodriguez, a respected value investor and one of the few people to anticipate the credit crisis, has over 30% of his flagship fund in cash. And in an interview published on July 23rd, the head of PIMCO, Mohamed El-Erian told Barron’s:

And don't underestimate the value of cash; in a volatile world both good and bad assets are impacted, and the higher the probability of being able to buy good assets at really cheap levels. You don't want to be fully invested today.

In my own Multi-Asset Fund, JC'S holdings which I manage and control, I have 60% cash, which is very significant planning to make an agreemen on diversifying some of the Investments.

As Mr El-Erian suggests, cash has a characteristic that is often overlooked: its optional. Having cash on hand in a volatile market gives you the flexibility to purchase assets in the future at discounted prices. And that is exactly my next strategy purchase assets at discounted prices, It’s a mistake to feel compelled to be fully invested in an environment in which there are few attractive opportunities. Or as hedge-fund manager Seth Klarman puts it: "Why should the immediate opportunity set be the only one considered, when tomorrows may well be considerably more fertile than todays?" During periods of significant dislocation, when other investors are forced to liquidate positions, cash’s embedded option becomes particularly valuable.

The best measures of long-term value—the q ratio and the cyclically-adjusted price-to-earnings ratio—both suggest stocks are overvalued, even after the recent price declines. What if those discounted prices never materialise? It’s true that markets can remain expensive for long periods before value re-asserts itself, but the numerous risks in today’s environment are potential catalysts for that process to occur. When it does, prices typically overshoot on the downside along the way, at which point buying opportunities will come.

Keep writing me, keep thinking, and keep winning!

Playboy Party Warren Buffet & Inside trading

Finally it seems that the last fling of winter is over … The earth, the soil itself, has a dreaming quality about it. It is warm now to the touch, it has come alive, it hides secrets that in a moment, in a little while, it will tell and the objective to make One Million Euros seems closer than ever, being one year wiser and with the magic number on my side, helps me to reinvigorate the spirit, a flow of celebrations... and the sun has come to stay.

During my birthday I was invited to the Official Playboy Party in Helsinki Finland. For the 2nd annual time The Tiger nightclub hosts a party for the one and only in the adult magazine industry. It was a night to remember filled with the classic Playboy flavour, excellent music and all the right people.

Rock 'n' roll star, king, czar, and a kaiser / A room full of friends / A mouth full of cake ...



On the Investing arena Warren Buffett should be directly responding to the unprecedented criticism he is facing over the behaviour of his one-time heir apparent, but experts fear he is being hampered by a lack of corporate management or board depth.

Buffett has maintained his planned silence following the March 30 letter in which he disclosed David Sokol’s resignation and now-questioned investment in Lubrizol Corp. In the meantime, though, he has been slammed with the kind of rebukes and questioning from the media and investors that he just isn’t used to.

Even journalists with whom he has engaged often, like Andrew Ross Sorkin of the New York Times, have taken Buffett to task.

Sorkin — one of three reporters designated to ask Buffett questions at Berkshire’s annual meeting — has written two columns in the past week questioning his handling of the whole episode, which netted Sokol about $3 million in profits.

Image experts say Buffett cannot wait until that April 30-May 1 annual weekend gathering to address an issue that threatens to overshadow an event he calls the “Woodstock for Capitalism,” usually a multi-day celebration of all things Berkshire for an adoring crowd of 40,000 or more shareholders.

“If I were counseling Buffett I would recommend a very frank and complete discussion soon — 25 days is too long to wait,” said Lew Phelps, head, energy practice, Sitrick & Co, a top crisis communications firm. “There’s obviously a lot of concern in the marketplace about what this means. This is a situation where silence is not golden.”

The situation was compounded when Sokol went on the CNBC cable channel on March 31 and defended himself, noting that he was not the only Berkshire executive to recommend investing in a company after buying stock in it. Berkshire vice-chairman Charlie Munger did the same, he said, with Chinese car maker BYD.

Sokol was called out in a filing by Lubrizol late Monday. In a filing with the Securities and Exchange Commission, the company said Sokol knew Lubrizol intended to discuss a deal with Berkshire Hathaway Inc. That’s months before Sokol bought a $10 million stake in Lubrizol. He ended up reaping a $3 million profit under the terms of the $9 billion cash deal. See SEC filing for more details.

Until now, Buffett has stood by Sokol’s story that the investment didn’t break the law. Many legal analysts have agreed, though many said Sokol’s trading was a borderline transaction. Roger Altman, who advised Lubrizol, conceded that “it wasn’t Mr. Sokol’s finest hour.”

Legal analysts will now have to decide if Sokol used “nonpublic, material information” as the law defines it, to make an inside trade.

There is, of course, no evidence Buffett knew how Sokol acquired the information or that Sokol told him about the meeting with Citigroup Inc bankers where Lubrizol says he learned of the talks.

But even if Buffett didn’t know, it doesn’t reflect well on him. Sokol’s meeting with Citigroup bankers about potential deals — and he didn’t report back to Buffett? At the very least, Buffett has shown an error in judgment when it comes to picking a successor.

Not as bad, perhaps, as trading ahead of a deal. But if there’s one thing Buffett seemed to have a grasp on, it’s knowing all of the ins and outs of every deal, especially those he built. So lets remember that Every dog has its day...keep writing me, keep connecting, keep Investing keep in touch and keep winning!!!

Rebalance and Invest in 2011

Finally I have the opportunity to say "Happy New Year" to all my readers may this year bring the Millions we are waiting for, of course there is no easy way, during 2010 I experienced multiple ideas to make One million euros in less than 5 years and so far it is more than working, I experienced interesting surprises during 2010, I welcomed a baby girl named Katariina, got a new job, got a new house, increased my assets, met new and interesting people, diversified and increased the portfollio I manage, got new advertisement deals and I was able to work and collaborate with Investors and entrepeneurs that I admired in the past, and all this in a way happened just because of you My Readers.

So a new year has come 2011 a year to cash out and keep Investing, but before we do that let's have a look at my favourite positions and their respective profit during 2011 just in the Helsinki Stock Exchange all my International positions could be tracked on my previous posts with amazing results.

I will just show an example of 4 of my stock picks and their performance during 2010, Why would you like to put money into your 35th -best idea right?

1) M REAL B

Offers paperboards as well as office and other papers for consumer packaging, communications and advertising end-uses.

Has 13 production units in five European countries and about 4,700 employees.M-real is part of the Metsäliitto Group, one of the largest forest industry groups in the world, and is listed on the NASDAQ OMX Helsinki Ltd. This share increased 88.46% during 2010, and it will be a major player of my portfollio during 2011.

2) OKMETIC

Okmetic is the world’s leading supplier of silicon wafers for MEMS manufacturing. Crystal growth technology is at the very core of Okmetic’s expertise. It provides the foundation also for highly doped, low-resistivity wafers that enable extremely high performing power semiconductors. This share increased 75.40% during 2010, a must have.

3) RAISIO VAIHTO

Raisio Oyj, known internationally as Raisio Group is a company that makes cereal products, potato products, animal feeds and engage in life-sciences. Raisio produces benecol a ingredient used in a range of Cholesterol-reducing spreads, products and condiments marketed under its Benecol brand name, this share has increased 77.27% during the last two years.


4) PANOSTAJA Oyj PNA

Panostaja is a financially secure Finnish multi-field corporation that creates healthy companies Their goal is to elevate their investments in different fields from 5 to 10 years. I had the pleassure to meet one of his financial advisors and he gave me the trust and confidence to keep Investing with them, this share increased 41.75% during the last five years.

As you can see the average profit of this concentrated portfolio is 70.72 % and follows the basic rule of investing don´t lose money, so let´s assume you invested 10,000€ on these three stocks with a return of 70.72% you would have 17,720€ a perfect time to cash out some profit and rebalance.

Rebalancing is the process of bringing one’s portfolio back into proper asset allocation if you can do it yourself, or the time to change to a new money manager if you are not happy with the one you have.

During the year, the mixture of stocks,bonds mutual funds, and cash has likely shifted. Stock and bond values go up and down all the time. Your portfolio mix may be out of whack.

For example, you may have started the year with 60% of your money in stocks and stock funds and 30% in bonds and 10% in cash. The stock portion of your portfolio may have grown larger than your initial allocation percentage. Now you may have 80% of your money in stocks and 20% in bonds. You will want to trim your stock exposure back to its normal level.

the dynamics of your portfolio have to change. Every year, your stock percentage should go down 1 percentage point and your fixed income securities should go up one percent. Every year that you get closer to retirement, the more conservative that your portfolio should become.

If you handle your own portfolio, then you will want to shift your assets from the portfolio portion that has become too top heavy. For example, reduce your position in a stock or stock fund that has gained significantly during the year take the initial Investement and reinvest the profit a win win situation.

Add these proceeds to the portion of your portfolio that is lagging. For example, let’s say own an aggressive small cap fund and a moderate large cap fund. If the aggressive small cap fund has significantly outperformed the large cap fund then you may want to trim your position. Make sure that your portfolio fits in line with your risk tolerance. A lot of people thought they were risk takers until the market crash of 2008 caused their portfolios to crash 50 to 60%.

A good strategy to take is to sell off funds that have become big and bloated. Maybe you are overly invested in domestic markets and need more international exposure Finland is a great option send me a line or two. Look for funds that may have underachieved the last year or so that may be due for a breakout. Yesterday’s market losers may be tomorrow’s winners and yesterday’s winners may be tomorrow’s losers.

remember to rebalance every single year many people never rebalance their portfolios and do not find out that they are overly concentrated in one area until it’s too late, the ones who rebalance are the ones that keep winning. You can pick the time of year that work’s best for you. I prefer to rebalance my portfolio at the beginning of the year. This way I can sell off positions that I want to get out of and start the year off fresh. It also allows me to take any necessary tax losses to offset gains on my portfolio.



There are so many interesting topics to Invest during 2011, I will have a close look to currencies now that I´m constantly evolving in that field specially Asian currecies (JPY,CNY,HKD,SGD) Also AUD and let's not put aside the precious GOLD that drives people crazy just have a look at it's interesting performance during the past year:


So there are endless opportunities to acomplish the objective of one Million Euros in less than 5 years let's make it happen during 2011, eager to hear your comments and ideas don´t hesitate to contact me, have a great start of the year!