Do not sell when the markets decline. If your investment horizon is long term, you should just stay the course. The long term trajectory of the stock market is up, and you will be fine.
How many of you have heard this advice before? How many of you act on this? Are you still “staying the course”?
First of all, beware of any advice that says do this regardless of the economic condition or whatever else may be going around in the world.
If you treat your investments like a business owner treats his business, you should absolutely not bury…
One prospective origin story behind the term ‘fiasco’ comes from the art of glass bottle making in Italy. When members of the public tried their hand at crafting beautiful long-necked glass bottles, the tricky technical task would sometimes get the better of them — leaving their creation looking a little bit rotund and shapeless. “Look! A !” they would joke, referring to the light-bulb shaped fiasco bottles that would be used to carry Chianti.
Today, however, the phrase ‘Look! A fiasco!’ might be more commonly used in reference to WeWork’s blundered attempt at going public in the summer of 2019.
I love writing and the idea that I can be writing for money defied credulity at first. I knew there were professional journalists, and there were authors on wide variety of topics, both fiction and non-fiction, but surely they had that little something that I didn’t have!
Perhaps you have had the same thought.
I am here to not only tell you that it is possible to make money writing, but I will also show you how to make money writing.
So grab a coffee or two and let’s dig in.
Picture your idyllic life. You wake up lazily in…
Many of you know that I have been an entrepreneur for a long time — Investing is just one manifestation of it. Many years ago when I was actively buying, selling and running small businesses, I had the opportunity to see how this private market works. The valuation process is interesting, and while it mirrors the valuation process in the stock market, it tends to be much more conservative.
I put down some of my thoughts on this process here. Please take a read.
Life insurance might seem like a no-brainer investment that everyone should have, but that’s not necessarily the case. In fact, surveys indicate that 52% of Americans don’t have life insurance, and 38% don’t even want it. Why is that? This article will take a look at who should spring for that life insurance policy, and who should look elsewhere for investment opportunities.
Life insurance can be a great way to ensure that loved ones are taken care of when you pass. The money can be used to pay off debts, pay for funeral expenses and other after-death costs, and even…
There was a phase of my career when I was on an acquisition trail for small businesses. I had quit my job and decided to get in the steel industry, earlier in the value chain, and attempt a roll-up of the industry.
I figured that the small steel processors were being squeezed out of their margins by the large automotive OEMs out here in South East Michigan. The situation elsewhere in the country was not too dissimilar, just the predators were different. Substitute appliances, or airplanes, or school buses, and you get the same picture.
Typically in scenarios like this…
According to Wikipedia, fear occurs in response to outside stimuli. The stimulus can be in the present or the future.
As humans, our normal response falls under two categories. We either fight fear and overcome it, or we run away from it.
Everyone has fears, especially when it comes to starting something new. I call it the fear of the unknown. We, humans, are always scared of the unknown because the unknown means more risk.
For many, the art of value investing may seem to be decidedly “kludgy”.
Strict value investors refuse to consider the future prospects of the company. Estimates are inherently risky. We do not have a foolproof way of making estimates, and the future has a way of not sticking to our expectations. So we dispense with the future estimates in making our valuation call. The past, as we believe, has already come to pass, and therefore the numbers are reliable (not always, but I digress), and so we decide we will only consider the historical data in our analytical process.
Some rivalries never end. Bull vs bear is one such rivalry in the stock market.
The human economic history is replete with excesses in either direction. When going is good, we keep going and try to maximize our gain. Inevitably, we go farther than the economic fundamentals would support. The bull market, as the period of expansion and growth is known, eventually ends when the market sentiment turns towards pessimism. Similar events unfold in reverse when the market sentiment is pessimism, and it turns positive. …
Stockholders’ equity, or Shareholders’ equity, is the net worth of the company. Just like you and I calculate our networth as total assets minus total liabilities, a company’s net worth is also expressed as
Stockholders’ Equity = Total Assets — Total Liabilities
If this appears to be familiar, it is because this is the basic accounting equation, rearranged.
We will use the terms Stockholders’ Equity and Shareholders’ Equity interchangeably. Book value is another term for shareholders’ equity, that you may be more familiar with.
The key insight is that the higher shareholders’ equity is better than a lower shareholders’ equity.