leverage

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 …

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 …