It’s pretty complicated, so I stay away. Essentially you have to know what companies hold which patents. How defensible are those patents? How long until those patents expire? What drugs do companies have in the testing pipeline? How likely are they to pass clinics and reach market? When will they reach the market? And even … Read more
In the long run, do you really think it matters that much if you buy at $128 or $123? Quick example: Let’s say you buy at $123 and it gives you a 10% return for 10 years. If you had paid $128 instead, it’d be a 9.6% return. Point being, don’t get caught up in … Read more
You are a den of vipers and thieves! I intend to rout you out, and by the grace of the Eternal God, will rout you out! – Andrew Jackson to the 2nd Federal Reserve This article is less an inditement on WFC as an investment and more of an inditement on me as an investor. … Read more
Any fool can learn from his own mistake, but a wise man learns from someone else’s. My eyes glaze over and my nose turns up whenever someone makes macroeconomic predictions. One cannot overstate the repulsion I feel. The hubris! I always want to say, “you should write down all your predictions, just so you can … Read more
Historically, the SP 500’s PE has been around 14-15. Bullshit! I actually believed this garbage until I started digging into the numbers myself. Using the numbers from here, I’ve discovered that PE’s have been increasing for a loooong time. This average of 15 no longer exists. Average PE Since 23.91 1990 20.48 1980 18.82 1970 … Read more
5. Aswath Damodaran – MBA Corporate Finance Spring 2017 Aswath Damodaran is a finance professor at NYU Stern. He actually teaches Benjamin Graham’s old class, I believe. If you’re taking the CFA exams, then you’ll find his lectures helpful.He really breaks down some of the more archaic academic concepts well. Also, since he’s not beholden … Read more
To find how many years an amount will take to double at a given growth rate, simply divide 72 by said growth rate. So at 7%, $100 should double in 10 years. 72 / 7 ~= 10 When I look at a company with Value Line or roic.ai, I want the revenues to have at … Read more
The S&P 500 index is put out by the rating agency Standard and Poor’s and is comprised of 500 large cap U.S. companies. You can find a current list of companies on Wikipedia. When someone says “the market” they are often referring to the S&P 500. Other popular indices include the NASDAQ, which is more … Read more