The Dumbest Idea In The World: Maximizing Shareholder Value Excellent argument. The real market vs the expectations market In today’s paradoxical world of maximizing shareholder value, which Jack Welch himself has called “the dumbest idea in the world”, the situation is the reverse. CEOs and their top managers have massive incentives to focus most of [...]
Value Investing – The Super Investors of Graham and Doddsville Here’s an article that everyone interested in value investing should definitely read. It was adapted from a speech given by Warren Buffett back in 1984 promoting value investing, and highlights the returns of 9 successful investment funds managed by people following Ben Graham’s Value Investing [...]
How to Make Money in the Stock Market Here are some foolproof ways to make money in the stock market, since, obviously, investing your own money isn’t a very good option. 1. Start a Broking Firm Get some idiot investors to buy and sell stocks daily and earn brokerage on their transactions. Convincing them that [...]
Why Active Investing is a Waste of Time | Why You Should Just Invest in a Passive Index Fund There are two basic ways to invest your money in stocks: 1. Active You invest your money in select stocks or in funds which try to beat the market and continually monitor and adjust your portfolio [...]
Facebook’s Valuation is Now $85 Billion Shares of Facebook touched a new high of $34 in the latest SharesPost auction, implying a valuation of $85 billion. Considering its 2010 revenues ($1.86 billion) and profit ($400 million), it is now trading at a P/E ratio of 212.5, which is almost ten times that of Google and [...]