Are Bonds a Good Investment? Bonds are a type of investment that allows individuals to lend money to governments, corporations, or other organizations. They are often seen as a less risky option than stocks and can provide a steady income stream through interest payments. Bonds are the ownership of the debt of a company or […]
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Charlie Munger sees our current market environment to be much like the 1970s when inflation was running high and the Federal Reserve had to get inflation down at all costs, even if it led to a recession. “Well, when Volker, after the seventies, took the prime rate to 20% and the government was paying 15%
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“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.” – Warren Buffett Warren Buffett only buys stocks when he believes he’s getting a great company for a good price. He is able to get the best companies at great prices during bear markets. This is when he believes the biggest
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Paul Tudor Jones became famous after appearing in the PBS documentary The Trader in 1987 where he anticipated a stock market crash. He used stock index futures to triple his capital under management during the Black Monday crash in 1987 with large short positions while most other traders were ruined or suffered huge losses. His
Paul Tudor Jones: We are getting ready to deploy our recession playbook Read More »
Roth IRAs and traditional 401K accounts are designed to enable people to save money in investment accounts by offering tax advantages. These retirement accounts were meant to replace the defined employer pension plans of the past. With a pension plan an employee received a defined payment every month from their employer based on years of
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There is a big difference between saving, investing and speculating with money. Savings is putting money away safely for future use in a low interest account. Investing is putting capital into an asset of value for either potential cash flow or appreciation. Speculating is betting on an asset increasing dramatically in value mostly due to
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In the world of finance, intrinsic value is the true, inherent, and essential value of a specific asset independent of its quoted price in a market. In speculation prices can become far removed from the actual value of a stock versus the business it represents ownership in. Fundamental analysis is used to quantify the intrinsic
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This is a guest post by Christopher Russell of TheStockDork.com As an investor, you dedicate your hard-earned money to one or multiple financial schemes, property, commercial ventures, or shares, expecting to achieve a profit or an increase in value over time. Therefore, this calls for investing in things that you understand but doesn’t mean you
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Image source www.dakotavalue.com This chart shows top investors returns or their Alpha versus the market returns. What is Alpha Return? Alpha (α) is used in investing as a measure of performance of returns of an investment or investor returns that are higher than a relative benchmark index. Alpha is the term used in investing to describe
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“An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.” – Benjamin Graham Example of Investment and Speculation An investment is buying an asset with intrinsic value that has cash flow and/or physical asset value. Speculating is buying something in an
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