Archive for June 27, 2012

Three Risky “Safe Investments”

Before we get into the main focus of this post this statement must be made: there is no such thing as a “sure” investment.  Some industries tend to do better than others because of their necessity or popularity, but there is no such thing as a “safe investment”, “sure thing”, or an “always profitable investment”.

Even though the true financial crisis began and ended in 2008, both amateur and professional investors are worried about the stability of their investments.  Millions of people saw their retirement funds and 401ks disappear after 2008 and nobody wants to experience that sense of panic and loss again.  Economic experts have always expressed the importance of investing in necessities regardless of the current market situation, but the definition of what qualifies as a human necessity has changed over the years.  It was already said that there’s no such thing as a 100% safe and steady stock, but there are certain industries that always seem to survive the worst financial panics.

Tech Industry

Economists have been arguing over whether or not tech tools (laptops, computers, smart phones) are true necessities for years. It could be argued that computers and smartphones are now a necessity in the lives of many people in developed nations, the modern workplace revolves around these advanced forms of communications technologies.  If you want a solid tech investment don’t go for popular OS manufacturers like Apple and Microsoft, invest in tech hardware manufacturers like Intel and Samsung. The iPhone and other popular tech products will eventually lose their popular appeal, but the hardware these devices are made from will always be needed.

Food Industry

Investing in the food industry is a tricky kind of “safe investment”.  People will always need to eat, but people won’t walkways have to eat a certain brand.  Some people invest in companies like Coca-Cola and Pepsi since they have a considerable market share both at home and abroad.  Investing in these food conglomerates can also give investors the added bonus of investing in an array of products by just investing in one company.  PepsiCo owns Pepsi, but it also owns Frito-Lay and Tropicana, two large and popular food and beverage manufacturers.

Pharmaceuticals Industry

The pharmaceuticals industry has seen some substantial growth in the past few decades, and as medical science continues to advance the industry will only grow stronger.   Drug manufacturers are always experimenting with new medications and searching for new ways to use their older medicines, so investors won’t have to worry about there being a lack of innovations and growth.  It’s important for pharmaceuticals investors to stay on top of industry news, one clinical trial or FDA study could discover a problem with a new wonder drug and send your stocks plummeting.

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We started this blog to chronicle the only statistic that matters to us: return on investment. After all, it doesn’t matter how much press, buzz or attention a particular method, product or service is getting. If it isn’t showing you returns, it isn’t worth the paper (or web space) it is printed on. We also started this because ROI is all around us. From the return on investment from a college education to the monetary gains from cloud services to merger and acquisition news, cutting through the speculation and getting to the meat-and-potatoes of today’s biggest business purchases can tell more than any trend story on a magazine cover or popular Twitter feed ever could.

Return on investment may not always be monetary. While many companies will judge success of any initiative by its raw earnings, sometimes the return can be something else. Car manufacturer Audi is one of the most engaged companies in the social media landscape. But as of yet, the company has not effectively linked the use of social media to increased car sales. The advertising and visibility they get speaks to their branding as a more technologically advanced automobile. And that is enough for them. Facebook purchased photo sharing platform Instagram earlier this year for a record $1 billion. Their reasoning was not entirely monetary. They bought the company so no one else could. These returns may not have an immediate benefit but may aid efforts to expand in the future. By discussing these moves, readers of ROI Zone get a view of not only the present business landscape but also where it is headed.

We will follow all of these stories and more, keeping you updated on how these companies have benefited or been hindered by various newsmaking investments. We will also examine popular home investments and see how the statistics stack up. Like any great investor, it is important to see the future in as many ways as you can. With ROI Zone, we are your crystal ball for home and business, helping you ensure that your money is always money well spent.

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