Investing, Finance & Economics

Learn about the world of investing, finance and economics.

Understanding Risk

Understanding Risk

Resource Center 25/06/2019 0
Understanding Risk  There are quite a few things you need to understand to become a successful investor. Risk is one of those things. There are a lot of unfortunate misconceptions about risk, riskier assets don't necessarily translate to higher returns otherwise they wouldn't be riskier. A bad compa...
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Finding Undervalued Stocks

Finding Undervalued Stocks

Resource Center 24/06/2019 0
Finding Undervalued Stocks "The danger of paying the wrong price is almost as great as that of buying the wrong issue" -Investor, Benjamin Graham  Investor can approach this by either of this 2 strategies:Use comparative analyis (Phillip Fisher strategy) orScrutinize corporate reports as they go liv...
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Liquidation Value of a Firm

Liquidation Value of a Firm

Resource Center 24/06/2019 0
Liquidation Value of a Firm  intrisinc value > price of stock (good) If a company sold all its assets & paid all its liabilities, the remaining cash is called book value. book value > market cap = interesting opportunity Investor can liquidate the entire business, the business has a limited downside...
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Watered Stocks

Watered Stocks

Resource Center 24/06/2019 0
Watered Stocks  This concept originates from selling cattle. In order for cattle vendors to trick buyers, they would have their cattle bloat themselves with water to fetch higher prices. A business example of this is Schaeffer, whose advert jingle had a $40 million valuation.  Schaefer Brewery https...
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Industry Specifics Investing Determinants

Industry Specifics Investing Determinants

Resource Center 24/06/2019 0
Industry Specifics Investing Determinants   All industries are quantified uniquely as a company in the tech-software industry does not operate in the same parameters as a company in real estate, distribution, airline or manufacturing industries. Below are monitoring tools you use to determine whethe...
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7 Element Equity Investing Algorithm

7 Element Equity Investing Algorithm

Resource Center 21/06/2019 0
7 Element Equity Investing Algorithm  1. Everyone winsSuccessful businesses have indefinitely sustainable business systems: owners, employees, customers, suppliers. 2. Ballast for the stormLook for a sustainable balance sheet. Able to survive in all environments not just optimizing for one. 3. Diffe...
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The DC DEALER

The DC DEALER

Resource Center 21/06/2019 0
The DC DEALER The Balance sheet DebitCreditDrawExpensesAssetsLiabilityEquityRevenue The balance sheet comprises of two neither good nor bad parallels namely debit and credit (DC). In the debit parallel, we have draw, expenses and assets (DEA). In the credit parallel we have liabilities, equity and r...
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The Self Regulating Nature of the Market

The Self Regulating Nature of the Market

Resource Center 20/06/2019 0
The Self Regulating Nature of the Market  If you leave the market alone will it do good or bad? Back when it was fashionable to be an intellectual, 1776, Adam Smith wrote Wealth of nations. In his book he pointed the following outHumans seemed to derive great enjoyment by seeing the well-being of ot...
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Understand the Income Statement and the Balance Sheet

Understand the Income Statement and the Balance Sheet

Resource Center 18/06/2019 0
Understand the Income Statement and the Balance Sheet  The Income StatementFocuses on the revenue of a firm and it's expenses during a specific time period.RevenueCost of goodsOperating expensesEBIT (Earnings Before Income Taxes) Balance sheetSnapshot of time usually Dec 31st. Visualizes two sides t...
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