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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Dollar cost averaging is an investment process where you invest a set amount of money into a market at regular intervals. The strategy is to put a fixed amount of dollars in a specific investment like an index fund so you get more shares when the price is lower and less shares if the price
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Private equity is specifically a kind of stock ownership in a company that is not publicly traded on a stock exchange. In recent times though it has been what people call private funds that use capital to takeover companies (many times through leveraged buyouts) with the goal to rebuild the company’s business model to create
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Warren Buffett thought the management fees that hedge funds charged investors was ridiculous based on their historical returns in comparison to the markets. So Mr. Buffett set up a challenge for the hedge fund industry in 2008. One fund accepted his challenge, Protégé Partners LLC, and they made a million-dollar bet on who could produce
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Stocks are an asset class of investments where you buy a share of ownership in a publicly traded company. Stocks are equity in a company. Shares trade on stock exchanges through market makers and executed for investors through a stock broker. How do you invest in stocks? Decide you want to own stocks. Understand the
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In 2001 during a Fortune Magazine interview Warren Buffett said that the stock market capitalization to GDP ratio as a long-term valuation indicator is probably the best single measure of where valuations stand at any given moment. The stock market capitalization to GDP ratio is used to measure if a market is undervalued or overvalued in
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The company that Warren Buffett built along with his business partner Charlie Munger is Berkshire Hathaway Inc. Berkshire is a multinational conglomerate holding company that has been run out of its headquarters located on one floor of the Kiewit Plaza building for over 50 years in Omaha, Nebraska in the U.S. Berkshire Hathaway Inc. is a publicly
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A debt-to-equity ratio (Or D/E) is the ratio in finance that shows the relation of the size of a company’s outstanding debt in relation to a company’s market cap versus what the business owes after financing the purchase of assets, research and development, and product launches. The debt to equity ratio is similar to leverage.
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The Sortino ratio is a way to measure the risk adjusted return of an asset, investment portfolio, or trading strategy. The Sortino ratio is an adjustment to the Sharpe Ratio that filters volatility from upside moves from downside moves. The Sortino ratio only measures downside moves that are below a specified volatility target or return
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