Tag: long-term
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Stock Market Crash
I am taking care to warn my followers about the notion of bubbles and the consequential crash. What’s a bubble? Occasionally Mr Market (8. Mr Market) tends to become too exuberant about the future of the market or more often one specific sector. The most recent and known bubble was the dotcom bubble. At the…
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14. It’s a war
“In business, I look for economic castles protected by unbreachable moats” Warren Buffett Capitalism is like life, it is a war. Our goal is to find the best fortress where to put our capital, ideally a fortress with a wide moat, and a smart and powerful lord.In the course of human history, battlegrounds have changed…
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13. 10-K
“The SEC enforces the securities laws to protect the more than 66 million American households that have turned to the securities markets to invest in their futures—whether it’s starting a family, sending kids to college, saving for retirement, or attaining other financial goals.” sec.gov As explained on the first page of the SEC website, the…
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Cryptocurrencies
As usual, I want to start with a quote, in this case, Naval Ravikant, a notorious entrepeneur and angel Investor. For those uninformed about this branch of investing: Angel investors are the first investors in embryonic projects, namely start-ups. Naval is active on Twitter (@Naval) and, if you are interested, I warmly suggest you to…
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Case Study 2 – Berkshire Hathaway
Do you remember when I spoke about how companies reward us? (7. How the companies reward us). I decided to write some case studies in the course of this blog because I think that reinforces the concepts in our minds. Initially, the goal of those studies is to explore events that give us a hint…
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12. Starting point
Well, let’s start our journey through the numbers. As I said, quantitative analysis isn’t my preferred part. I prefer good stories, but over time, due to some errors, I understood the importance of numbers. Stories sometimes lie (i.e because the CEOs lie, often they are only good salesmen. We will learn how to value a good…
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11. Stories and numbers
“Investing in stocks is an art, not a science, and people who’ve been trained to rigidly quantify everything have a big disadvantage.” Peter Lynch Peter Lynch is one of the best investors of all time, he ran the Magellan fund, which earned an annual return of 29.2% from 1977 until 1990. In other words, if…
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10. Circle of competence
“The game of investing is a process of discovering who you are, what you’re interested in, what you’re good at, what you love to do, then magnifying that until you gain a sizable edge over all the other people.” Li Lu – Himalaya Capital Fund. One of the most essential things in investing is to…
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Case study 1 – Tesla (TSLA)
In the eighth article (8. Mr Market), I wrote about Tesla (TSLA) and its high quotation in relation to other carmakers. In my series of articles I haven’t touched the fundamental analysis basis.Anyway, Tesla gives me the chance to highlight some points and concepts. As you can read in the “Mr. Market” article, sometimes the…
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9.1 Appendix – Economic Cycles
In article 9 I wrote about “Economic Cycles” but I need to clarify some points. Life, economy, business. The economy follows a cyclical pattern, the same is true for human life and business life but we will dig deeper into business life when we will talk about valuation. Economic cycles are mainly defined by the…