Stocks are an asset class of investments where you buy a share of ownership in a publicly traded company. Stocks are equity in a company. Shares trade on stock exchanges…

In 2001 during a Fortune Magazine interview Warren Buffett said that the stock market capitalization to GDP ratio as a long-term valuation indicator is probably the best single measure of where…

The company that Warren Buffett built along with his business partner Charlie Munger is Berkshire Hathaway Inc. Berkshire is a multinational conglomerate holding company that has been run out of…

A debt-to-equity ratio (Or D/E) is the ratio in finance that shows the relation of the size of a company’s outstanding debt in relation to a company’s market cap versus…

The Sortino ratio is a way to measure the risk adjusted return of an asset, investment portfolio, or trading strategy. The Sortino ratio is an adjustment to the Sharpe Ratio…

Simple interest is only calculated on the original amount of capital inside a set time period. It does not include the compounding effect of returns on new money accrued. Simple interest can be…

The rule of 72 is a process for quickly projecting how long it will take for a rate of investment return to make capital double. The number 72 is used…

The Sharpe Ratio was developed it in 1966 by William F. Sharpe as a way to quantify potential risk in an individual investment or an investing method or trading strategy.  The Sharpe Ratio is…

The definition of a ‘brand’ is when the name and/or logo of a company is so recognizable that people associate it with a specific feeling and experience which can be…

For publicly traded companies and in investment terms the return on equity (Also abbreviated as ‘ROE’) is a way to measure the amount of net profits from a business as…