Comparing the P/E Ratio of Nifty 50 Companies with Today (7 Examples)
The nifty 50 companies were the most popular stocks of their time in the 1960’s and 1970’s. These 50 companies were growing so fast that investors bought them at any price, even at high P/E ratios. There were valid reasons behind these high P/E (Price to Earnings) ratios. But, as we’ll uncover today, the results […]
What is the Cost of Capital and How to Use It
Updated 12/12/2023 “I’ve never heard an intelligent discussion about ‘cost of capital.’” The value of any company or investment is the present value of future cash flows, whether Microsoft, our home, or a piece of art. Part of determining the present value of future cash flows is defining the discount rate or hurdle rate to […]
FAANG Companies: Is Their High Growth Sustainable?
The FAANG companies—aka Facebook, Apple, Amazon, Netflix, Google—are technology leaders of the stock market known for their high rates of growth. They are sometimes referred to as “Big Tech”. There is no special qualification to be a FAANG stock; it’s simply a catchy acronym to represent some companies which have done really, really well in […]
Secular Trend Definition and Examples
Secular is the term used to describe trends that are long-term in nature and not affected by short-term seasonal, cyclical, or economic factors. Secular trends are driven by fundamental changes in critical areas such as technology, politics, and demographics, as well as societal changes which drive consumer behavior. While secular trends are expected to continue […]
How to Calculate the Cost of Debt
Updated 12/19/2023 Determining a financial asset’s value is part of calculating the present value of future cash flows. To value a company, we need to have a sense of magnitude and sense of those cash flows, plus any risk associated with receiving that cash. Part of determining the future value of those cash flows is […]
How Can I Better Utilize Short-Term Investments?
Do you have some extra cash laying around in a savings account? If so, you should consider a short-term investment strategy to allow your money to grow. Do you have some extra cash laying around that you are looking to invest, but you may be a little passive on the stock market? Or, maybe you […]
Want to Beat the Stock Market? Let’s Get Those Momentum Funds at Work!
Updated 1/22/2024 If you ask me, one of the biggest secrets to investors is the way that ETFs can be used to their benefit to increase their gains. Not only the normal ETFs that come to mind like SPY and VOO, but also some others like MTUM that track the MSCI USA Momentum Index. So […]
VOO vs. SPY – Which One Will Make You More MONEY?
One of the most common things that you will ever hear in the investing world is people using S&P 500 returns as a benchmark or basis for investing and even financial planning. Ok…that sounds great, but how exactly can you simply invest in the S&P 500? Well, it actually is as easy as finding an […]
The Practical Solution to Begin Investing With No Money
Updated – 11/3/23 Although it’s not easy to start investing with no money, it certainly isn’t impossible. Keep reading for tips to start your investment accounts now! There is one saying that you hear many people allude to, and that is, “it takes money to make money.” And while that may be somewhat true, it […]
The Recession Resistant Triple Net REIT [Complete Guide]
The major source of income for all REITs remains the rents they collect from their tenants, but how much do we know about the leases the business operates under? Most of us don’t know much about those leases and the types, such as a triple net lease. A triple net REIT is a particular kind […]
