Thoughts on the High Yield Bond Market from Warren Buffett
If you were to read Section III.A in the Essays of Warren Buffett, then you’re going to hear all about Buffett’s opinion on the high yield bond market and bonds in general, but let me summarize for you – he doesn’t like them. Buffett’s personal opinion, and it’s one that I 100% agree with, is […]
Here’s the Optimal Dividend Policy According to Warren Buffett
As I continue to read (and fall in love with) The Essays of Warren Buffett I can’t help but urge you to buy this book on your own. I love giving these short chapter summaries, and today I’m going to focus on Dividend Policy, but I think it’s well worth the ~$30 to buy it […]
How Reliable is an EPS Estimate? 10 Case Study Examples
Earnings Per Share – the #1 most talked about metric for a company’s quarterly results (based on my experience that is backed up by 0% statistics and 100% listening to my peers when discussing earnings). There’s so much emphasis put into a companies EPS and therefore, such a huge importance on EPS estimates. If you’ve […]
Explaining Unrealized Gain and How it Affects Taxes for Investors
Have you ever realized that you have unrealized gains? See what I did there?! I know, I know – I really need to stop being so cheesy… So, what actually is an unrealized gain? Well, you’ve likely heard of the term ‘realized’ which simply means anything that has come to fruition. For instance, you might’ve […]
Investing in Biotechnology Companies: Pros and Cons
Andrew and Dave recently talked about investing in Biotechnology Companies on their podcast and it was by far, one of my favorite episodes that they have ever done, and I can say that for multiple reasons: Biotechnology Companies are the hot thing right now. Think that toy in Jingle all the Way that Arnold Schwarzenegger […]
Stock Market Data on the January Effect: Is it a Reliable Indicator?
Have you heard of the January Effect before? The January Effect is a very common topic this time of year in the investing world where people claim that the best performing month in any single year is January. In other words, the market is going to have the greatest return in January than it would […]
Examples of Basic Financial Instruments
At a very high level, a financial instrument is simply a monetary contract between parties. The International Accounting Standards define a financial instrument as “any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.” The key word to focus on here, in my […]
Defining Intelligent Investing According to Warren Buffett
First, let me say that you need to go out and buy The Essays of Warren Buffett as soon as you can. In this short 7-page section he does an amazing job at explaining what it means partake in Intelligent Investing vs. what we all have likely done before- pretending that we are day traders. […]
CSCO Dividend – Will its Rising Dividend Make it a Future Aristocrat?
Cisco (CSCO) implemented their first dividend back in April of 2011, which really isn’t that long ago if you really think about it. Back then, the first annual CSCO dividend was $.24, a modest $.06/quarter. Although it doesn’t sound like much, for a shareholder of a company that wasn’t receiving a dividend at all, it […]
Stocks with Negative Shareholders Equity: Are They Good Investments?
In a recent episode of the Investing for Beginners Podcast Andrew and Dave take a deep dive into the financials for Starbucks and specifically key in on Negative Shareholders equity. I highly recommend that you take a listen to the episode to get a really good example of how this is applied when Andrew and […]
