An opinion can change in the blink of an eye, but a sound well-conceived idea can change the world. For a prudent investor, the correct information is of vital importance for achieving the highest return on his/her investment.
Warren Buffett, master among the investment experts, said the following with all of his reason: “We don't get paid for activity, just for being right.” And when he thought about making money, he said the following: “Rule Number One: Never lose money. Rule Number Two: Never forget Rule Number One”. Paraphrasing Warren Buffet, we can say: “Rule Number One: Never get out of being right. Rule Number Two: Never forget Rule Number One”.
To be correct, in the right position, must be the fundamental principle of the intelligent investor. (Buffett, 2006). And speaking of the intelligent investor, we have as a reference the lessons of Benjamin Graham, called often “the Father of Value Investing” and “the Dean of Wall Street”, who co-authored with David Dodd in 1934 the book “Security Analysis”, which is considered by many as the Bible of Investing, and in the 1949 he published his book “The Intelligent Investor”, which is highly recommended by Warren Buffett, his best student at Columbia University, as the best book ever written on Investing.
Benjamin Graham affirmed with vehemence the following when speaking about making an investment: “You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right” (Benjamin Graham, 2006a).
The legendary Benjamin Graham established since the beginning his remarkable definition of a correct investment: “An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.” (Patton Albertson & Miller LLC, 2006). According to the fundamental principles that guided his vision on the Intelligent Investment, the Wikipedia asserts that for Benjamin Graham “The investor is best off concentrating on the real life performance of his companies and receiving dividends, rather than being too concerned with Mr. Market's often irrational behaviour.” (Benjamin Graham, 2006b).
All of this takes us to the conclusion that the intelligent investor must make an effort to carry out a conscientious analysis at the time of making any investment, because being right on his/her assessment is what really matters, not the fluctuating opinions of a speculative nature. We are conscious of this reality as legal, financial, and fiscal consultants. Our commitment is to serve as facilitators in the entire process of investing in real estate in the sector of Tourism in the Dominican Republic, providing all of the objectivity within our reach in order to obtain the optimization in the decision-making process at the time of making any kind of profitable investment.
The risks underlying the financial uncertainties must be reduced to the maximum for optimizing the benefits in such a competitive scenery as it is currently the world, which advances at giant leaps towards globalization, towards the integration of international markets, towards the maturity of the Era of Knowledge. The technological advances that have facilitated this global process also have complicated matters in a certain way due to the vastness of information available that can cause a fatal saturation at the time of making business decisions in the area of the foreign direct investment.
In the same way that an opinion can fluctuate from moment to moment, in that very same way efficient and opportune information can increase the comparative advantage and/or competitive advantage of a well-advised investor. The quality of the information is of vital importance in a world where opinions abound without any kind of rigorous analysis. As an example we have the Internet. At the same time of being an inexhaustible vein of knowledge, it can also be a source of incredible disinformation when we don’t find the reliable information that can facilitate the decision making that can really be based on real, relevant, and dependable data. At the time of investing our economic resources, the right information in the right direction will indeed guide us to a safe port. And when we are going to invest in a foreign country, these same principles on the correct consultation continue being valid.
The best idea on foreign direct investment can be acquired from the hand of legal, financial, and fiscal experts who deeply know the real situation of the host country in which we are willing to make our investment. Here the difference between a changing opinion and a correct information will surely mean the key of success, because the native expert can greatly ensure the completion of any investment thanks to his/her first-hand knowledge on the legislation, the regulation and the daily details of the host country where the investment is made. To a greater exact knowledge, there is a greater profitability of the investment. To a greater correct information, a higher yielding profit in the businesses. To a greater clarity in the ideas, a greater optimization of the resources. As the rules of the game are as clear as possible, the greater the return on the investment will be.
In the area of foreign direct investment it is imperative to consult from those who deeply know the local reality. This way, the agility and the efficiency will make out of the foreign direct investment a successful decision taken in the right direction thanks to the knowledge of the rules of the game in the host country of the native legal, financial, and fiscal consultants from the foreign country. We can help you as guides in the legal, financial, and fiscal consultancy in the Dominican Republic, because we rely on the necessary experience to make out of your investment in the area of real estate in the Tourism sector, specifically, a process with the minimum degree of traumatic experiences.
We can facilitate the streamlining and the efficiency of your investment in the Dominican Republic. Our endorsement is our experience, and our prestige is our credibility at the time of doing business. We have represented legally the world-wide famous Major League Baseball slugger, Sammy Sosa, and the Olympic medalist Félix Sánchez, winner of the only gold medal for the Dominican Republic in the Olympic Games.
We can take as an example the highly respected and successful investor Peter Lynch, who was manager of Fidelity Magellan Fund between 1977 and 1990. Under his management, this company grew from operating with a fund of 20 million dollars to operating with a fund of 14 trillions of dollars at the time of Lynch’s retirement as an enterprise manager and from public life at the age of 46. Lynch managed to obtain a 29% of average annual return during his management at Fidelity Magellan Fund, which constitutes a true financial record. In a conference offered by Peter Lynch in 2005, this famous investment expert establishes eight fundamental principles that must guide an investment. Kaushal B. Majmudar, CFA, in the article entitled “The Wit and Wisdom of Peter Lynch” enumerates those fundamental principles as follows:
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Know what you own. Most people don't really know the reasons why they own a stock - you should. |
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It is futile to predict the economy, interest rates, and the stock market (so don't waste time trying). |
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You have plenty of time to identify and recognize exceptional companies. |
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Avoid long shots, because they are too risky. |
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Good management is very important, but look for good companies because a good management in a bad business will probably fail. |
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Be flexible. Lots of unexpected things happen, some good and some bad. |
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Knowing when to sell is hard. |
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There is always something to worry about, and this makes things interesting. (Majmudar, 2006). |
In addition to the eight fundamental principles, Peter Lynch spoke of the ten most dangerous things that people say about the stock market prices. In conclusion, according to the words of Kaushal B. Majmudar, everything gets down to common sense and the understanding of human nature and their erroneous judgments and their failures.
The best investors of the world will always remember us that investing depends in a high degree of internal and psychological challenges. For this simple reason, the direct foreign investor will be greatly successful under the consultancy of native experts in the matter in the host country. We can offer our legal, fiscal, and financial services in the Dominican Republic in the area of real estate in the Tourism sector to the prudent and intelligent investor in order to facilitate the legal, financial, and fiscal procedures so you can make out of your investment a much more profitable and effective experience. That is our specialty, and our guarantee is our knowledge and our experience in the Dominican market in the legal, fiscal and, financial consulting business.
As a specialist with more than twelve years in the area of real estate, I would like to offer you the benefit of a service beyond the transactional agreements of contractual closings. We are able to help you to identify the investment risks, mitigating or reducing their impact to the maximum, and handling with effectiveness the uncertainty of investing in an emergent foreign market. In short, we offer you a service oriented towards the optimization of your investment trying to maximize its benefits, but mainly eliminating as far as possible the complicated legal language to assure to our clients an adequate use of time, that will result in the effective allocation of the resources. All of our experience is endorsed by the firm of lawyers Figueroa Guílamo & Asociados (Figueroa Güilamo & Asociados website).
With over more than twelve years in the real estate market, we have represented natural people and companies all over this country, with greater emphasis in the East region of the country. Our services in projects like Cap Cana, Punta Cana, Casa de Campo, La Romana, Gardens of Cosón (Jardines de Cosón), include a wide variety of services from the constitution of companies to the fiscal consultancy, and the maintenance of companies.
Our service starts according to the requirements of our clients by making an assessment of their needs, and it only gets completed when our clients have fully received a satisfactory service. We have developed a special system in which our services are offered on a fixed rate of payment. We don’t charge our customers on a per-hour rate. We understand that this type of payment is not designed for everybody, and due to this fact, we have decided not to accept within our clients portfolio those who prefer to pay for our services on a per-hour rate. Our charges are standardized for specific tasks, so that any uncertainty as far as the total cost of our services is eliminated.
At the present time, we are very actively immersed in the market of preconstruction investment that has the tendency of maximizing the benefits of the investment in real estate in the country, because it allows -under several circumstances- the acquisition of excellent properties at a minimum initial cost that can lead to making a profit very rapidly in the possible transaction of reselling.
My services are endorsed by the firm Figueroa Güilamo & Asociates, created in 1985, of which I am a member since 1997. This firm of lawyers is functionally and structurally based on the concept of a “boutique”.
This way there is a very strong emphasis in the delivery of the service, and a fast answer to the problems and interests of our clients with the highest degree of synergy and proactivity possible. Our interest is to grow along our clients.
Therefore, we recommend to all of our potential clients, that is to say, to all of you who are looking for a big luxurious firm, to get hold of our services even though we don’t fit with those characteristics, although our culture and vision of management don’t include the luxury and the high rate of the great offices, but we still offer marginal advantages that will be greatly appreciated due to their high degree of effectiveness.
Anyway, our commitment in delivering all of our services with the greater efficiency possible in order to optimize the results of our clients can indeed be considered as a luxury with regards of our commitment. (Figueroa Güilamo & Asociates Services)
