Is Investing In IPOs a Scam?

Nothing may be more exciting than a new stock entering the public markets. Financial media will cover its every move as Wall Street scrambles to get a piece of the young, sexy company that tells a great story. We’ve seen it all plenty of times before. Most companies enter the stock market through an initial […]

Using a DCF Model to Value a Stock

Investors are inherently predicting the future. Whether with an individual stock or a basic index fund, deciding to park your savings in a financial asset means you are making a bet about the future value of that asset. Otherwise, why would you buy it? Suppose you treat stock analysis as no different than analyzing a […]

Understanding EBT, EBIT, and EBITDA: Key Financial Metrics Explained

In investing, understanding financial metrics is like having a roadmap in a complex landscape. For beginners, terms like EBT, EBIT, and EBITDA can sound like a confusing alphabet soup. In this blog post, we’ll break down these crucial metrics in an easy-to-understand way. Whether you’re a budding investor or simply curious about financial analysis, this […]

ROIC vs ROCE: When to Use One Over the Other [Pros & Cons]

Updated 8/25/2023 ROIC (Return on Invested Capital) and ROCE (Return on Capital Employed) are formulas describing how efficiently a company invests its capital. The difference between ROIC vs ROCE is subtle but powerful—basically, one (ROCE) is a shortcut of the other (ROIC). Before diving deeper, here’s the simple cliff notes: Return on Capital Employed Formula […]

Convertible Preference Shares – Great Alternative to Buying Bonds

Updated 8/7/2023 Preferred shares are the red-headed stepchild of the investment world; they are relatively unknown among most investors. But investors such as Warren Buffett use them to invest in companies such as Occidental, as recently as May 2019. Preferred shares come in many different flavors, and today’s article will uncover the magic of convertible […]

How Fractional Reserve Banking Works and How Banks Create Money With It

Updated 8/7/2023 The banking system, with all of its checks and balances, is confusing to many, including yours truly. However, depositing our money in our accounts and then banks using that money to lend to others is central to the banking system. The fractional reserve system allows banks to use our deposits to grow their […]

Cash Vs. Stock Acquisitions: What’s Driving The Bus?

Updated 7/24/2023 “If you aggregate all of our stock-only mergers (excluding those we did with two affiliated companies, Diversified Retailing and Blue Chip Stamps), you will find that our shareholders are slightly worse off than they would have been had I not done the transactions. Though it hurts me to say it, when I’ve issued […]

Simple Merger and Acquisition Terms for Beginners

Updated 7/6/2023 Learning M&A is a little like learning another language. Understanding the different terms associated with M & M&A will go a long way to understand why companies undertake this process and what they hope to gain for the company and shareholders. Having a common understanding of the most common terms used in general […]

Mergers and Acquisitions: Easy Basics for Beginners

Updated 7/6/2023 Global mergers and acquisitions (M&A) volumes hit a record high in 2021, overtaking 2020’s deals. According to Refinitiv data, the total volume of completed deals and those in the pipeline is $3.6 trillion in 2021, with three months to go, passing the $3.59 trillion of 2020. Mergers and acquisitions are on the upswing, […]

M&A As A Growth Strategy

Updated 7/6/2023 Merger and acquisition activity drives much more growth than investors realize, and many companies practice mergers and acquisitions or M&A as their main source of growth. Companies like Google, Microsoft, Facebook, and Constellation Software use M&A to sustain or continue their growth. Between June and April of 2021, there have been almost 1,000 […]

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