Bank Balance Sheet: The Importance of Stress Tests for Investors

Most of the risk associated with investing in banks is tied up in the bank’s balance sheet. All banks go through a process of stress, testing the bank balance sheet to ensure the bank has enough liquidity to withstand multiple stressful situations. Much of the risk banks face stem from the credit, operational, market, and […]

Opinion: Why Merger Mania May Be on The Cusp in a Post-COVID World

Mergers and acquisitions are one and the same. It’s the classic big fish swallows the little fish. And on Wall Street, when M&A starts to really get going—well, that’s what’s called “merger mania’. I think we’re on the cusp of a new merger mania, accelerated by the COVID-19 crisis and everything that’s happened because of […]

Corporate Restructuring Basics: How Taxes and Politics Play a HUGE Role

History provides a valuable guide and lessons to finance, and the history of corporate restructuring is no exception. In particular, the Merger mania in the 1980’s provides a prime example of what can happen on Wall Street as companies struggle to survive and thrive in an ever-changing environment. While textbooks can provide fantastic explanations about […]

How to Find and Invest in Tax Free Municipal Bonds

“I’m proud to be paying taxes in the United States. The only thing is – I could be just as proud for half the money.” Arthur Godfrey No one likes to pay taxes; imagine an investment that allows you to legally avoid paying taxes on your returns. Is there such a thing? Yes, there are, […]

Corporate Bond Trading for Beginners: How to Buy Bonds Online

Ben Graham, the father of value investing and the creator of security analysis, was a huge proponent of investing in bonds. His seminal book, The Intelligent Investor, recommends allocating anywhere from 25% to 75% of your portfolio to bonds. Investing in bonds can be a great way to increase your margin of safety and protect […]

How to Earn Interest on Your Cash Allocation with Low-Risk Treasuries

Updated 3/6/2024 Do you know who is one of the largest players in the treasury market? Surprise! It is Warren Buffett! Bet you would have never guessed! Shocking, I know, but it makes sense because he has said for years he has had trouble finding companies to buy or invest in because of the size […]

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 […]

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