As volatility returns in the US stock market, investors become risk averse and seek safer investments such as bonds. Since most of the developed countries in the world, including Japan and many European countries, offer negative interest rates, investors have…
Category: Investing
Repo Rate Spikes, And The Fed Starts Buying T-Bills. What Does That Mean?
The US Federal Reserve announced on Friday, October 11, 2019, that it will buy $60 billion of treasury bills (T-Bills) each month to build its reserve. Jay Powell, the Federal Reserve Chairman, said that this decision was made to address…
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Dividends and Buybacks
There are two ways in which a company can return capital to its shareholders i.e. either by paying dividends or by buying back its shares. As an investor, it is important for you to know how you are going to…
Time Bombs That Could Blow Apart A Profitable Company
When investing in a company, one has to be sure that he is aware of all the investment risks associated with that company. In order to gauge potential investment risks, I specifically look at 2 places - 1. Risk Factors…
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Warren Buffett’s “Cigar Butt” Approach To Investing
Have you ever wondered how billionaire Warren Buffett made his first million dollars? His current investment approach is totally different than the investment approach that he practiced and preached earlier in his career. Buffett initially made his fortune using the…
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The Magic Formula Investing
I was recently reading up on Joel Gleenblatt, a famous value investor, and I came across his magic formula investing strategy. Greenblatt discussed about this investment strategy in his book - The Little Book that Beats the Market. Using this…
How To Find The Value Of Stocks?
The market has been pretty volatile recently, with optimistic buying coupled with fear induced selling. Mr. Market has been highly unpredictable, and it is times like these when value investors sit back and watch the action unfold. Value investors know…
Trade War, Federal Reserve, China, Interest Rates, Currencies, And More
There has been a lot of action in the stock and the bond market recently. In this week's blog post, I will talk about my take on the current events. Let me briefly go over these current events: United States…
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Investing In Pfizer Or Merck?
In this week's blog post, I will compare two of the largest American multinational pharmaceutical companies - Pfizer Inc and Merck & Co. Using fundamental data, I will determine which one of these two stocks is the better investment. I…
How Vigilant is the Management?
If you are the shareholder of a company, you are the owner of that company. With that mentality, it becomes obvious that the management is there to serve you. The CEO is there to make sure your company is run…
5 Super Investors And Their Portfolios
In this week's blog post, I will talk about 5 value investors and their current holdings. I gathered the data used in this blog post from the US Security and Exchange Commission (SEC) form 13F. SEC Form 13F is a quarterly…
Investing In Intel, AMD, Or Qualcomm?
In this week's blog post, I compare 3 stocks in the semiconductors industry - Intel Corp (INTC), Advanced Micro Devices Inc (AMD), and Qualcomm Inc (QCOM). Using fundamental data, I will determine which stock is the best investment. I will…
Investing In Delta, American Airlines, Or Southwest Airlines?
In this week's blog post, I compare three of the leading airlines in the United States - Delta (DAL), American Airlines (AAL), and Southwest Airlines (LUV). Using fundamental data, I will determine which one of these three stocks is the…
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Investing In CVS Or Walgreens?
In this week's blog post, I will be comparing two of the leading pharmacy chains in the United States - CVS and Walgreens. Using fundamental data, we will determine which one of these two stocks is superior. I will start…
Investing In Chevron, Exxon Mobil, Or Royal Dutch Shell?
In this week's blog post, I will be comparing three oil and gas behemoths - Chevron, Exxon Mobil, and Royal Dutch Shell. I will use the fundamental data to help us make a determination about which one of these three…
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The Warren Buffett Way – Book of the Month
In May 2019, I listened to 5 audiobooks: The Warren Buffett Way, The Warren Buffett Portfolio, Stress Test: Reflections on Financial Crises, The Culture Code: The Secrets of Highly Successful Groups, and Sway: The Irresistible Pull of Irrational Behavior. All…
Investing in Funeral Services Business
I was recently listening to Mohnish Pabrai, a value investor, talk about how funeral businesses have the lowest failure rates. Here are some of the important points that Pabrai made while talking about funeral business: The population continues to grow,…
Tariffs on China Equate to Stagflation in the United States?
This past week, the US Stock market was highly volatile. The markets had big fluctuations because of the trade tension between the United States and China. On May 10, 2019, President Trump tweeted that the United States has started levying…
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100 Baggers – Book of the Month
This past month, I listened to 3 audiobooks, and I found 2 of them to be very informative: "The Book on Rental Property Investing" by Brandon Turner and "100 Baggers: Stocks That Return 100-To-1 And How To Find Them" by…
3 Cognitive Biases That Influence Your Investment Decision
A cognitive bias is a mistake in reasoning, evaluating, remembering, or other cognitive processes, which occurs as a result of holding onto one's preferences and beliefs regardless of contrary information. In other words, a cognitive bias is an error, which…
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