Blog Posts

An LBO, or leveraged buyout, involves acquiring a company primarily using borrowed funds, with the acquired company’s assets often serving as collateral. A takeover refers to one company purchasing a majority stake in another, gaining control of its operations and assets. A corporate raid is a strategy where an individual or firm buys a large […]

Return on Capital (ROC), Return on Assets (ROA), and Return on Equity (ROE) are metrics that assess a company’s ability to turn capital into profit. Each ratio, using distinct metrics, offers a different perspective on a firm’s financial efficiency.   ROC (Return on Capital) ROC, which is sometimes termed ROIC (Return on Invested Capital), offers […]

In trading, there are countless variables that can impact the outcome of any trade, so intuition can be a reliable tool in many circumstances. For experienced traders, it can provide an intuitive edge – guiding them beyond data and analytics. But what really is intuition, and how does one use it in trading?   Key […]

Trading success isn’t just about pure analysis. At its core, successful trading often requires a dose of creativity. This original thinking capability, which allows individuals to birth fresh ideas, can be key.   Key Takeaways – Creativity in Trading While traditional schooling emphasizes memory and rule-following, real-world success often rewards creativity, intuition, and strategic thinking. […]

We all know stories about Enron, Worldcom, Wirecard, and other large companies that, suffice to say, didn’t pan out for traders and investors betting on their success. They weren’t the first and won’t be the last large companies to fall. What happens to the broader market and economy in such circumstances? A stock that constitutes […]

Building trading and investing algorithms involves a blend of financial theory, mathematics, programming, and data analysis. These algorithms are designed to make trading decisions based on certain criteria, which can include any number of factors based on the underlying cause-effect relationships governing the decisions. Building trading and investing algorithms is a complex, iterative process that […]

In a separate article, we covered the current status of the basic reserves today; namely, the USD, EUR, JPY, GBP, CNY, and gold, as the main few. In this article, we’ll cover reserve currency history as well as reserve currency status, the benefits it brings, and how it’s lost. We are currently in a precarious […]

The entire purpose of trading and investing is to earn more money back over time than is lost. At worst, it should preserve your purchasing power over time. Drawdowns are the one thing that should be avoided at all costs. Warren Buffett is known for his quotes on investing, one of which pertains to his […]

The non-linear relationship between losses and the gains required to recover those losses is an important concept in portfolio management. For example: A 10% loss requires an 11% gain to recover. A 20% loss requires a 25% gain to recover. A 50% loss requires a 100% gain to recover. Mathematically, if “L” is the loss […]

Auto-callables are complex savings instruments that offer a bond-like fixed return, crafted by selling stock options.   Key Takeaways – Auto-Callables Auto-callables are savings instruments that offer fixed returns similar to bonds, created by selling stock options, primarily on broad stock market indices. They attract investors with their potential for higher yields and early redemption […]