Compound interest is the most powerful force in the universe. – Albert Einstein Is it really? Let’s dissect it. Compound Interest is earning interest on interest in addition to just principle. Therefore, it is a great way to accumulate your wealth. What are the rules of compounding? There are four components of compounding. They are. […]
Year 2021 was great for stock investors. The S&P 500 was up 27% and our portfolio was up 31.5%. Nevertheless, we are still lagging the S&P 500 in the long-term. See below. It is a bitter truth of our overconfidence and lack of proper investing knowledge during our initial years. $100 invested in S&P 500 […]
FY21 Q3 highlights: Net sales increased 15% to $110.8 billion in the third quarter, compared with $96.1 billion in third quarter 2020. Net income decreased to $3.2 billion in the third quarter, or $6.12 per diluted share, compared with $6.3 billion, or $12.37 per diluted share, in third quarter 2020. Revenue per share and EPS […]
My better is better than your better. – Nike. Nike Inc. reported its Fiscal 2022 Q2 results and here are the summary: Revenue up 1% to $11.4 Billion Direct Sale up 9% Gross Margin up 280 basis points to 45.9% Sales in North America and Europe was up 21% and 22% respectively. However, China and […]
I have been collecting properties of good business, which will help you distinguish between a good investment or not. Without a further ado, here is the list. Good Business Model Easy to Understand Popular Product Loyal Customers Strong Brand Barrier to Entry Low Production cost Pricing Power Requires less Capital to Grow Untapped Pricing Power […]
AT&T, a dividend aristocrat, is being part of our portfolio on and off for a long time. We have gained a good chunk of dividends as well as capital gain from owning this company. Lately, it has been a drag. Partly due to pandemic, which has dented its media business. In the post split environment, […]
May 31, 2021 issue of Bloomberg Businessweek had an article about Cathie Wood, who is the manager of the Ark Innovation ETF fund, with an incredible 150% gain in 2020. The article is very interesting to say the least. There are a lot of things that are outright dicey for any value oriented investors. However, […]
Stock investing can go three ways i.e. up, down or sideways. Theoretically, it is possible a stock could not move up or down in an open session, but it rarely happens. So, we will stick with just two options. Investors buy stocks with an anticipation of making profit. Obviously, every investors, except the ones that […]
“I don’t know which is worse.” Charlie Munger said when asked about bitcoin’s price and Tesla’s market cap. I truly believe that someday a bitcoin will sell for a Million dollar or more. Why not? And, yes, I am not talking about Zimbabwean dollar. I mean a Million US Dollar. Allow me to explain it […]