Case Studies

The Time Value of Money

In the investing world, youth is a super-power. Young people can invest for a long time.

Thanks to compounding, the ability to invest for such a long period can produce stunning increases in long-term wealth.

People think that keeping their savings in cash is a way to avoid making an investment decision. Holding cash is an investment decision whether people realize it or not. Historically, it’s been a horrible decision.

The Time Value of Money
Introduction to the Stock Market and Portfolio Theory

Introduction to the Stock Market and Portfolio Theory

Company-specific risk is caused by factors specific to a company Investors can mitigate company-specific risk by diversifying their portfolios across different companies and industries.

Risk and Reward

The most successful investors excel in one skill more than anything else, evaluating risk and reward when investing.

The Expected Payoff Formula

How would you like to buy a hotel resort for $1 dollar. Understanding the expected payoff formula.

Balance Sheet Analysis

Balance Sheet Analysis

Accounting is the language of business. It’s how companies show what they own and owe. It’s how companies show how well or poorly they’re doing. Accounting knowledge helps turn dull financial statements into potential treasure maps.

Sherlock Holmes would have made a great forensic accountant, scouring financial statements uncovering clues of fraud and shenanigans.

Balance Sheet Analysis

Income Statement Analysis

Without a financial ratios, financial statements filled with rows and rows of numbers would remain difficult to decipher.

Financial ratios are Wall Street’s Rosetta Stone. They give sense and order to things.

Income Statement Analysis
Price/Earnings Ratios

Price/Earnings Ratios

Buying a stock without knowing the company’s valuation, like it’s Price Earnings Ratio, is like flying a plane blindfolded through a narrow valley of volcanoes.

The Cost of Capital

Just because an investment is profitable, doesn’t mean it is worth investing in.

Companies who can consistently generate returns greater than their cost of capital are rewarded strongly by the investors.

The Cost of Capital

”Don’t give away a slice of your pizza, if you’re only getting a single peanut in exchange.”

Which Factors Determine Stock Price Direction?

Which Factors Determine Stock Price Direction?

Valuation is not as a big factor in determining stock returns as you many people think. That’s not always true, but over the past 4 decades it’s mostly been true.

Innovative Disruption

AI powered robots mining asteroids in space for rare metals is this the future?

Successful companies are often so focused on meeting the needs of their existing customers that they fail to see the potential of new technologies to disrupt their markets.

Disruptive technologies often come from small, entrepreneurial companies that are not constrained by the same legacy systems and processes as established companies.

Innovative Disruption