I am fascinated by money - what it is, how it operates, how to attract it, save it, invest it, spend it, give it to others and create more of it. In palmistry, women entrepreneurs' hands reveal, in the hand's simple, straightforward way, the STRUCTURE of money as well as what to do and what NOT to do to have a good relationship with money. Look at the palm of your hand. The middle finger is divided into three zones. The upper zone represents women business owners' 'system' of money, the middle zone represents the 'management' of money and the bottom zone represents the 'roots' of money. The upper zone of the middle finger says that money has a system to it. This system may be abstract and invisible at first glance, but it has a system nonetheless.
The lower zone says that money has its roots in the Earth. If you think about it, EVERY TANGIBLE THING WE POSSESS COMES FROM THE EARTH. Your desk, your computer, your clothes, the food you eat, gold, diamonds, etc. - all this bounty comes from the Earth.
The middle zone is where the system of money and the material resources of money combine. Managed properly, women entrepreneurs put money in the bank. Thus, the middle zone of the middle finger is about managing money. The System of Money (palmistry upper zone): Money is a precise measure of value - it either adds up or it doesn't. Money deals in numbers that can be put on spreadsheets and on profit and loss statements. Money is orderly and therefore, it LOVES order. If women business owners want to attract more money, they need to have structures in place that organize the money that they attract. Structures such as balanced bank accounts, an accountant, a bookkeeper and a SYSTEM for their business. The more women entrepreneurs can create reliable, repeatable systems in their businesses, the more money they will have. The Management of Money (palmistry middle zone): This is money in the bank - preferably in an account with your name on it! The precision of your money system directly impacts the flow of money in and out of your bank account. As a palmistry expert, I cannot stress this enough.
The Roots of Money (palmistry lower zone): Money is the systematic measuring of the value placed on goods and services. ALL goods and services come, originally, from the root of all roots - Mother Earth. 'Money' measures value - tangible and intangible. The 'root' of money is that which is valuable - things you can touch as well as things you can't. Your inner value system can't be held like a diamond in your hand - but it's critical to your success in business. Your values MUST line up with your actions. Here are some palmistry formulas that reveal the STRUCTURE of money: NOTE: Formula Key: Upper Finger Zone = System; Middle Finger Zone = Management; Bottom Finger Zone = Resources Excellent System + Excellent Management + Excellent Resources (your inner values, knowledge, desire, passion, focus, additional money) = $$$$ Some System + Some Management + Some Resources = some $$ No System + No Resources + No Management = what money? Here's another way to play with our formula: a good system plus solid values equals money in the bank. For many women entrepreneurs that I coach, the SYSTEM seems to be the missing piece. Most women business owners are keenly aware of their bank account status because it's a physical reality. But the necessary systems to honor their inner values often get left in the dust. Why? Because they're not in our face every day, demanding our attention.
Copyright (c) 2008 Elizabeth Davis
This third part of this series focuses on another important element of Warren Buffett's hugely successful methodology - return on equity (ROE). Now, you may have heard the term "return on equity" before. It's not a relatively new concept, and it is one that is commonly used in finance. However, its importance must not be taken for granted.
Knowing what "return on equity" is only one part of the trick, the other part is knowing how to practice it to a greatly favorable effect. Warren Buffett uses the same fraction used by basically everyone in the industry, yet, he applies it in a style that no other person does, and this is the lesson that all investors should embrace.
Firstly, I will address the definition of return on equity. ROE simply constitutes the earnings of a company divided by shareholder's equity. ROE is also frequently called the "stockholder's return on investment." because it reveals the rate at which shareholders are bringing in income on their shares. This rate can be considered both good or bad, however this is largely dependent on the company and industry.
For example, a low ROE would be considered bad for a consulting firm because it is in an industry that doesn't require assets to start generating an income. On the other hand, a low ROE would be acceptable and even good in the oil industry because it is an industry that requires a lot of infrastructure to start generating an income.
However, the type of company or industry is generally irrelevant in this part of Warren Buffett's methodology (however, there is an exception which is explained in Part One). The reason why ROE is important to him is to see whether or not a company has consistently performed well in comparison to other companies in the same industry. The key word here is consistency. Buffett will always choose a company that has a consistent ROE over one that has an ROE that continuously fluctuates. In fact companies, which depend on the commodities such as oil and gas, are his least favourites and tend to have a largely fluctuating ROE. This point is explained in Part One of this series.
An appropriate time frame for studying the ROE of a company is 5 to 10 years. Such a time frame will give you a sound idea of the historical performance of the company. One way of doing could be opening up past financial reports of a handful of companies, most of which would have their reports uploaded on their website. In addition, it would be useful to research and find the average ROE of a handful of industries to compare company performances.
The next part of this series will focus on another important element of Buffett's methodology - debt/equity ratio, and how many investors frequently overlook it. Watch this space!
Both Elizabeth Davis & Martin Sejas are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Elizabeth Davis has sinced written about articles on various topics from Self Confidence, Family and Public Relations. Beth Davis, "The Hand Analyst," is a professional hand analyst/palmist and winner of the 2007-2008 Glazer-Kennedy Information Marketer of the Year Award. Get her free special report, "The 5 Massive Mistakes Spiritually-Oriented Women Make in Business and. Elizabeth Davis's top article generates over 4400 views. to your Favourites.
Martin Sejas has sinced written about articles on various topics from Music, Soccer and Dancing. About the author: Martin Sejas is the chief writer of Stocks-And-Commodities.com, a leading website dedicated to finding the best and the newes. Martin Sejas's top article generates over 40500 views. to your Favourites.