In recent years, there have been many personal finance novels that speak to the value of holding on to a security for a long period of time. So, in the spirit of the “buy and hold” philosophy I’d like to …
Leverage – Amplifying Returns
Famed investor and billionaire Warren Buffet once said, “My partner used to say there are only three ways that a smart man (or woman) can go broke: liquor, ladies and leverage. The truth is – he only added the first …
What Jeff Bezos, Bill Gates, and Warren Buffett Have In Common
If you want to be skinny, you need to eat what skinny people eat, and if you want to win at business, you need to emulate the strategies that have made these entrepreneurs so successful. This article will break down …
Capital Structure – Who Get’s Paid?
An important part of finance is knowing how much risk you take on when looking at an investment and its accompanying capital structure. When the profitability of a company is questionable, an important aspect of risk is where you stand …
How To Value A Company (DCF)
This article focuses on a high level approach to company valuation! My favorite method to value a company is the discounted cash flow approach (DCF). It is calculated by estimating the total value of all future cash flows, and then …
The Power of Compounding Interest
Albert Einstein once noted that the most powerful force in the universe was the principle of compounding interest. In investing, this is the most powerful tool to transform your life. Compounding interest means that you begin to earn interest on your …
Cost of Equity Using CAPM: WACC Component
This article will hopefully give some insight on how to value a publicly traded equity through the Capital Asset Pricing Model (CAPM). CAPM seeks to calculate an expected rate of return given an amount of systematic risk and the cost …
