Return On Equity (ROE) examines how the capital fund for the business’s asset and how the asset generates return based on your capital. If each $ of asset only generate each $ of earnings, it means the company is just merely cover its cost of capital. This indicate that the company at competitive disadvantages or…
It is a common misunderstanding that investments have to be difficult, with complex finance theories and bombastic sounding financial words. In fact, it is a known fact that all these “gimmickry” are intentionally done to make retail investors think that investing is difficult, and it is better to rely on “financial planners” and “fund managers”. Nothing…
Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously-accumulated interest. Let’s play around with…
In the investment world (as with all worlds involving the act of buying & selling something), there is a term called the Fear & Greed Pendulum. The acts of fear and greed persist over the ages of time simply because humans are susceptible to volatile emotional changes. In order to understand about the emotions of…
There’s a fine line between being frugal and being cheap. Frugal people understand that paying more doesn’t necessarily mean better value. People who are cheap wouldn’t pay more regardless of the value. Those whose all of his or her belongings were purchased at garage sales, are probably cheap. Here’s how to save money, but avoid…
Make informed decision Proper research should be done about the company/stock before money is placed in it. Very often, this is not the case with most retail investors. The average investor (or rather gambler) just invest based on gut feeling alone. A company/stock should be analysed from both quantitative and qualitative aspects. This may involve…
I am going to talk about two different ideas. Floats And Moats. These 2 ideas have been caused me step into the world of investing. Generally, my passions and addictions into investing world are heavily surround these 2 ideas. I like to study businesses where I tried to identify the Floats and Moats. I would…
Hello again everyone! Today I will be a writing part 3 of my 10-part discussion on the topic on Achieving Personal Financial Freedom, titled: Money is no longer Real money. As this is a very long post, I will be splitting the post to 3 parts for easier reading. This will be part 3 of the post. The…
Hello again everyone! Today I will be a writing part 3 of my 10-part discussion on the topic on Achieving Personal Financial Freedom, titled: Money is no longer Real money. As this is a very long post, I will be splitting the post to 3 parts for easier reading. This will be part 2 of the post. The…
Hello again everyone! Today I will be a writing part 3 of my 10-part discussion on the topic on Achieving Personal Financial Freedom, titled: Money is no longer Real money. As this is a very long post, I will be splitting the post to 3 parts for easier reading. This will be part 1 of the post.…