Blog Posts

In this article, we cover the basics of cash flow analysis. In trading and investing, cash flow is what gives businesses value. The value of a business is the amount of cash you can take from it over its life discounted back to the present. So, understanding cash flow gets at the heart of where […]

Companies buy back shares for a number of reasons. One key reason is to return value to shareholders. By reducing the number of shares outstanding, each remaining share becomes more valuable as earnings are spread over fewer shares. By reducing the amount of outstanding common stock, companies can improve their return on equity (ROE), making […]

In this article, we’re going to look at cases of countries in the 20th century where there were full wipeouts, and near-wipeouts, of financial wealth. This is based on 60/40 portfolios (i.e., 60 percent stocks, 40 percent government bonds) and based on real (inflation-adjusted returns). A 60/40 stock-bond mix is often taken as a fairly […]

The 3-fund portfolio – often called the Boglehead 3-fund portfolio after Vanguard’s late founder John C. Bogle – is a simple, low-cost portfolio that consists of just three index funds. The Boglehead 3-fund portfolio has become one of the most popular investment portfolios among DIY investors because it is easy to understand and implementation is […]

Mutual funds and ETFs are similar and different in various ways. Both of them are investment vehicles that pool money from various investors to purchase a set of investments. In this article, we explore those differences and similarities.   Mutual Fund vs. ETF – Key Takeaways Mutual funds are actively managed by professional fund managers […]

The present value formula is a financial tool that can be used to assess the current value of an investment. This formula takes into account the time value of money, which is the idea that money today is worth more than money in the future. In other words, the present value formula can be used […]

What Is Proxy Trading? Proxy trading is the act of using certain securities or instruments to express a particular view in an inexact way. Examples of Proxy Trading Below are some examples of proxy trading: Energy stocks and oil One example would be buying energy stocks to express a bullish view on oil prices. They […]

What Is Structured Finance? Structured finance is a form of investment that involves the creation of complex financial instruments, which are often used to fund large and specialized projects and redistribute risk. Structured finance allows for risk sharing between investors and borrowers, as well as providing access to capital from multiple sources. Structured financing deals […]

Junk bonds are bonds with a credit rating of “BB” or lower. Junk bonds are also known as high-yield bonds because the higher risk associated with them typically means they carry a higher yield than other, safer investments. Junk bonds are usually issued by companies that are in need of money and can’t access conventional […]

Copper, and therefore copper stocks, are a hot item of interest. With the rise of commodities as an asset class of interest in a more inflationary world, copper stocks are being more heavily considered by traders and investors. Moreover, with climate protocols and greater global sensitivity to the use of hydrocarbons, if we do see […]