Basically, for something to have value it has to have usefulness. The greater the amount of usefulness then the higher it’s worth. If something has a high worth people usually would be willing to part with their hard earned money to use it. It takes a lot of research to dig through all of the … Read more
Google search “Financial Report of the United States”’ and it pulls up the US government’s financial statements. The recent year’s balance sheet which as of September year end 2020 reports a net negative financial position of $26 trillion dollars (it’s higher today). Basically, this is negative equity. Usually this would point to bankruptcy, yet since … Read more
The media is always trying to get the attention of readers and investors. The biggest challenge for an investor is wondering if the investment they’ve made is a good or a bad choice, and how long they should hold the investment. A simple media report or opinion can cause an investor to sell out of … Read more
Crypto makes headlines readily, and I suspect this will occur for a long while as the asset is still in its young childhood, and hasn’t hit it’s full understanding. A lot of it’s future comes with understanding where crypto currencies are in our society as a whole. Today’s banking appears technologically advanced. With the advent … Read more
Sometimes turning things upside down can give you a different perspective that you may not see otherwise. With investing I’ll invert questions with regard to a business’s operations to see if it shows me something I may be missing. I also sometimes turn charts upside down to see if it shows me something I may … Read more
The other day, my son, who is twelve, was talking conceptually about traders buying or selling a stock. In this case, he was referring to a share of Berkshire Hathaway A shares which trades over $370,000 per share as of this writing. He was wondering how hard it would be for traders to sell a … Read more
Vilfredo Pareto, an Italian economist, civil engineer, and socialist, in 1906 made the observation that within Italy 80% of real estate was owned by 20% of the population. Pareto discovered that this phenomena expanded beyond Italy’s borders occurring in neighboring countries as well. In later years this research by Pareto was used by Joseph Juran … Read more
Index investing has been a hot topic for investors. Most fund managers rarely beat their benchmark index, so investing with the index seems like the best route to take for those not interested in doing the investment research work. Today, indexing has gotten so large that there are some concerns rising to the top that … Read more
Bull markets or long term upward price appreciation are the golden child. They reflect the recoveries and expansions of the economic world. Economic recoveries and growth push spending and investment forward and compound. The simple act of spending and investing creates more of the same like that of an ant discovering a food source and … Read more
Trends and reversions or regressions to the mean are directional concepts within the stock market. Understanding trends and reversions and how to make them work for you as an investor can be important. A trend is a directional movement of some type that takes time to develop, yet continues until saturation of the trend occurs … Read more