Mental Models discussed in this podcast: Discount Rate Equity Risk Premium Second-Order Effects Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show’s audience. Follow me on Twitter and YouTube […]
77 – What is the source of your investment return?
Mental Models discussed in this podcast: Mean Reversion Inertia Reinvestment Rate Return on Incremental Invested Capital (ROIIC) Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show’s audience. Follow me […]
What is the best way to save money for a house?
A common frequently asked question that I receive concerns saving money to buy a house. This involves some variation of what is the best way to save money for a house? Should I save money for a house down payment in a bank account or does this money need to be invested? These are all […]
Stock Valuation: Price is Paramount
Stock valuation is the process of determining the appropriate price to pay for a stock. As we discussed in last week’s article, a bond’s value is based solely on it’s future cash flows. The same is true for stocks. The present value of all future cash flows, represents the intrinsic value of the stock. If we assume that […]
Bond Valuation: Price is Paramount
Bond valuation is the process of determining the appropriate price to pay for a bond. A bond’s value is based solely on it’s future cash flows. Therefore, the first step in the fundamental analysis of a bond is determining the present value of all future cash flows. The sum of those values is equal to the present […]
