Exploring the Value Chain for the Pharma Industry
Investing in any sector/industry can offer many different challenges. You can often come across a company you like but find another in the value chain you like better. The pharma industry is not different. For example, we can work backwards in the value chain from a company like Novo Nordisk and find other potential investment […]
Breakdown of Warren Buffett’s Valuation of Coca Cola in 1988
“I never buy anything unless I can fill out on a piece of paper my reasons. I may be wrong, but I would know the answer to that …I’m paying $32 billion today for the Coca-Cola Company because… If you can’t answer that question, you shouldn’t buy it. If you can answer that question, and […]
A Deep Dive into the Inner Workings of Compounding Machines: Understanding Their Competitive Advantage
A Deep Dive into the Inner Workings of Compounding Machines: Understanding Their Competitive Advantage As an investor, you always seek ways to maximize your returns and grow your wealth. One of the most powerful tools at your disposal is the concept of compounding. Compounding is earning interest on your initial investment and any interest earned […]
Understanding Nonrecourse Debt And Its Benefits: Case Studies in Action
The real estate investing world utilizes debt to help finance growth. Nonrecourse debt is one of the types of debt popular in the commercial real estate space. Many use it to help stimulate their growth while also protecting their downside. Nonrecourse debt protects borrowers by limiting the liability to its collateral. One shining example […]
Barriers to Entry: Avoiding Low Profit & Competitive Industries
One of the first concepts learned in business strategy classes is often barriers to entry. Barriers to entry is the term used to describe the factors which would deter new competitors from entering a market. Barriers to entry can be natural or human-made obstacles which make it difficult for a new entrant to compete with […]
Dividend Reinvestment Calculator to Plan Your Expected Returns (Excel)
One of the most powerful forces behind building wealth in the stock market comes from the compounding effects of reinvested dividends. As investors, it’s important to know what to expect from those returns when planning for the future. This post will introduce a simple dividend reinvestment calculator to estimate how much return to expect from […]
A Flexible CAGR Formula Excel Tool for Planning Your Chaotic Life
Have you ever thought it’d be nice to have an Excel formula to calculate the CAGR (Compound Annual Growth Rate) on your investments? After all, they move unpredictably rather than in a perfectly straight line. This post has a CAGR formula Excel spreadsheet to help investors plan their future—even when things don’t go exactly according […]
7 Deadly Sins in Behavioral Finance (Common Biases that Investors Face)
Behavioral finance biases….where do I begin? This article will present financial pitfalls, some of which I have learned through my own experience. Below are seven behavioral finance biases that you must avoid! Click to jump to a section: If you have already fallen into some of these, it’s ok. Stop, find your way out, and get going in […]
Guide to Investing in the Pharma Industry
Did you know the revenues for the global pharmaceutical markets in 2022 equaled $1.48 trillion? It had grown from $390 billion in 2002, a CAGR of 7%. To invest in this growing market, we need to understand the industry. This guide will cover some basics to understand the pharma industry better. Some top investors, such […]
How to Find the ADR Dividend Tax Policy of a Company in Minutes
An ADR, or American Depositary Receipt, is a simple type of share that allows U.S. investors to invest in companies headquartered outside the U.S. But the taxes for these are anything but simple. For example, the capital gains taxes for ADRs are different than the ADR dividend tax. How these tax rates affect you will […]
