How to calculate the present value of a series of cash flows?

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Have you ever wondered how much is a certain financial asset or a business worth if you wanted to buy it today? If you ever tried to invest in something, I am sure you have thought through this process. Continue reading

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Lessons from Warren Buffet’s Berkshire Hathaway 2014 Shareholder Letter – StockKevin

Lessons from Warren Buffet's Berkshire Hathaway 2014 Shareholder Letter - StockKevin

Great summary of Berkshire’s shareholder letter by Kevin. Take a look!

Lessons from Warren Buffet’s Berkshire Hathaway 2014 Shareholder Letter – StockKevin.

The Letter You Wish You Had In 1994

Many things changed since 1994, but certain investing principles still remain relevant today. Warren Buffett is a classic example of that statement and I bet that he would agree his investing strategy hasn’t changed since the 1950’s. We will go over some excerpts from his letter to the shareholders of Berkshire Hathaway in 1994. Warren is famous for his writings and many investing pundits from all over the world enjoy his letters. These three key principles should give you an insight on how one of the greatest investors of the 20th century approaches investing. Continue reading

Are You Investing or Speculating? Part I

vectorstock_3720867If you are somewhat interested in the stock market and you buy stocks from time to time, it would be extremely beneficial that you become familiar with the difference between investment and speculation. The difference is quite obvious, but it will require us to dig in a little deeper and define both terms. Benjamin Graham defined them like this: ” An investment operation is one which, upon thorough analysis promises safety of principal and a satisfactory return. Operations not meeting these requirements are speculative.” Continue reading