Category Archives: Blog

Are you an Investor?

Let’s start with a question: Are you a spender or an investor? Pop Quiz. Ready. Go. Question #1 I’ll give you $100 today or a new Mercedes next year? Which one will you take? A) The cash B) The car C) Why are you even looking at other options, you’d be crazy not to take […]

What makes a good business?

HOW DO I KNOW IF A BUSINESS IS A GOOD INVESTMENT? Imagine we have two friends both opening stores. Our first friend, Jack, wants to open a chain of candy stores. It costs him $2,000 to build a candy store, and each earns him $1,000 per year in profits. That’s a whopping 50% return on […]

Why do Stock Prices Fluctuate So Much?

Let’s play a game. Ready? Open a financial newspaper like the Wall Street Journal, turn to the stock quote section, and pick any company at random, and look at the high and low from the past year.   Ok, let’s see here. We have GM. They make cars and trucks. Over the past 52 weeks, their stock traded as […]

What is the value of a business

We’ll only invest in a company when the price we pay today is significantly less than the value we will get tomorrow. But how do we know what the value of the company is? Let’s take Apple. What is the value of the world’s largest business of consumer electronics? Well, the value of any business is […]