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Reality includes penny-pinching and being bored all the time

FIRE, or the “Financial Independence, Retire Early” movement is a popular personal finance concept where you compile an investment nest egg with your savings, and live off your savings, allowing you to retire earlier than the usual 65 years of age. …


Here’s what they are, and how they work

Within the range of services that an investment bank provides, there is a common mandate which often reaches the news headlines. Notable transactions include Disney & Pixar, Google & Android, Exxon & Mobile, just to list a few. These deals show us a story where there are benefits to a successful M&A transaction from a business sense. Perhaps there aren’t enough growth opportunities for the companies on a standalone basis, and perhaps a behemoth of a company wants to expand its product/service offerings without spending years developing a similar offering from the ground up.

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Photo by Cytonn Photography on Unsplash

When a company matures and growth slows relative to its historical past, it is inherently pressured by investors to seek different avenues of growth. Many times, M&A is the focus of this inorganic growth. There are acquisitions that make complete business sense, but there are also failures and acquisitions that made no sense. …


Modern Portfolio Theory and using statistics properly to invest

Technical analysis involving analyzing patterns, moving averages and other similar voodoo magic is essentially useless. For technical investors, many get caught up in the weeds and use their statistics, programming, and mathematical skills incorrectly. The first concept taught in finance courses around the world is that past performance should not be indicative of future performance. Instead of trying to find ties to the financial world to synergize with, chartists gamble using pictures past performance.

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Photo by Denys Nevozhai on Unsplash

Without understanding the fundamentals of the game you’re playing, and only using statistics, you are at a disadvantage compared to people who understand financial markets. It’s not enough to bet on sports without understanding the sport itself. Today, I’ll be introducing a crucial concept to know for portfolio management, which requires an understanding of statistics, and math. …

About

Pendora

Investment banker, global citizen interested in the pursuit and sharing of knowledge. Inquiries to pendorapubs@gmail.com

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