Archive

Archive for September, 2010

Liquidation Preference and IPOs

September 28th, 2010
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There are a number of high flying start-ups attracting a ton of VC money from both traditional VC investors and accredited individual investors. Many of these companies are listed on SharesPost.com and can be bought and sold just like NYSE and NASDAQ names. Unless you know the liquidation preference, you might just be out your investment, even if the company soars! Read more…

Investing

Supply-Side Economics Simplified

September 25th, 2010
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Republicans are beginning to sound a lot like Reagan in that they’re starting to sound a lot like Art Laffer. Reaganomics, a term that is ingrained in virtually every 30-something person in the United States, still creates quite an argument. On one end, democrats see the rich as a perfect target for tax hikes. Republicans, in the other corner, say raising taxes on the rich will hurt the economy. They’re both right, in a way. Read more…

Economy

Greater Fool Theory

September 21st, 2010
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In terms of the Greater Fool Theory, I have often found myself part of the “Greater Fool.” The Greater Fool Theory contradicts the discounted cash theory in that it says the assumption that investors aren’t always rational, and aren’t always interested in pure cash flow. Read more…

ETF, Forex, Hedge Funds, Investing

Average and Median Net Worth Data

September 19th, 2010

I keep seeing all these news articles about wealth, and how much net worth the average American has lost since the stock market crash and the financial crisis of 2008. (See: What is Wealth?) I wanted to do some research and see how rich (read: poor) the average American really is. Read more…

Investing

Fundamental Analysis Basics

September 18th, 2010
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A company has to produce something to make money. Maybe it has a few websites like Yahoo, or maybe it makes stickers and Post-it notes like 3M, or it could be a bank, which makes money in the future available to people today via loans. Read more…

Investing

Silver’s Autumn Advances

September 16th, 2010
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Silver does particularly well in the fall, at least in four out of the past five years. Excluding the deflation fears that surfaced in 2008 and during the Financial Crisis panic, silver has proven to do very well in the last four months of the year. Read more…

Stocks

Predictably Irrational Book Review

September 14th, 2010
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I read a lot of investing and economics related books, but never have I posted about any of them here. I figured I might as well start with a great book, one that I can easily recommend, and one that I think anyone interested in business, economics, or investing might appreciate. Predictably Irrational is just that book. Read more…

Book Reviews

Become Rich as a One Car Family

September 11th, 2010
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If there was anything Ross Perot ever got right in his campaign for president in the 1990s, it’s that the United States is certainly a car economy. That is, we spend more on our cars and produce (at the time) more cars than anyone else. Most families have one car per person, or even more. How could you benefit by becoming a one family? Read more…

Round Up

Weather and Business

September 9th, 2010
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Some say that stock picking is nothing more than a random walk down Wall Street, that investors are better off throwing darts than picking individual stocks themselves. Some have even written a book on the subject. ;) For some securities, they may just be right. Read more…

Business

Social Security Isn’t as Broke as You Might Think

September 6th, 2010

With midterm elections on the minds of every politician, there are more than a few hot topics floating through Washington. One of them is how the US government can salvage social security, and keep paying out benefits even as the payouts exceed income. Read more…

Round Up

50-2 Rule for Real Estate Investing

September 6th, 2010
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In the US, and all over the world, real estate investors are seeing green in a time when there is plenty of red. These investors are looking to buy properties that will not only appreciate, but also provide positive cash flow at the time of purchase. To do so, they’ll have to follow the popular 50-2 rule. Read more…

Real Estate

Same Store Sales Growth

September 2nd, 2010
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For the fundamental investor there may be no more important number than same store sales growth. In the coming months we’ll be sure to hear a lot about the same store sales data when holiday shopping numbers are digested, and with it we’ll see a number of stocks soar and plunge. You should pay attention to same store sales growth, too. Read more…

Investing