“Compound interest is the eighth wonder of the world. He who understands it earns it, he who doesn’t, pays it.” -Unknown Why is compound interest considered the eighth wonder of the world? Here are three shocking examples of the exponential growth of compounding. If you start with capital and grow it an additional 1% everyday […]
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An accredited investor is someone with an approved status to invest in more complex ways than the average retail investor. An accredited investor is approved to invest in hedge funds, venture capital, angel investments, and private equity offerings among other opportunities. While financial regulation laws and enforcement agencies vary by country the common principle is
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Enterprise value or EV is a financial measurement calculating the total monetary value of a business in the marketplace. Enterprise value is not the current market price but what the true value of the business is based on its assets and cash flow. The EV is the difference between the outstanding debt and the assets
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In the world of finance, discounted cash flow or DCF for short is the method for analyzing and projecting the value of a stock, company, project, real estate, or intellectual property by the estimated time value of money it generates. Discounted cash flow measurement and analysis is used in stock market investing, real estate investing
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There are two important things to consider before deploying capital with any trade, investment, loan, or business venture. Both the return on investment (ROI) and also when and if you will have a return of the investment capital itself must both be understood. Whether the potential for return is worth the risk taken depends on
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Here are the Berkshire-Hathaway portfolio holdings managed by Warren Buffett as of March 31, 2020 that were reported in the 13F filing to the SEC on May 15, 2020 along with other filings. His portfolio holdings by sector: Information technology 39% Financials 35% Consumer Staples 16% Consumer discretionary 5% Industrials 3% Health Care 2% Company/Ticker/
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Book value is a fundamental metric used to measure the intrinsic value of a company with the ratio of price/book value. This valuation metric can at times create a price support level for stock prices as this is the valuation that value investors will come in as buyers. To quantify the current value of a
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A follow-through day is a bullish signal created by William J. O’Neil to quantify a high probability change in a current stock market direction from a downtrend to starting a new up trend. Follow-through days signal during downtrends, corrections, and bear markets when a key stock market index closes much higher than the previous day’s
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This is a guest post by Manu Shoker of manushoker.com. Why Trading and Investing are so Fundamentally Different There is a popular misconception that trading and investing could be used interchangeably with one another. But as professional traders and investors can attest to, they are both radically different. It’s easy to mix the terms when both
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With the endless choices of podcasts on investing to listen to in 2020 I thought it would be helpful to recommend five that I enjoy and think bring great value and information to listeners. These five are a great place to start and listen to a few episodes and see if they align with your
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