In this week’s video blog post, I look at Tesla’s business model, all the risk factors, and contingent liabilities outlined in the company's annual report. I also look at Tesla's key ratios and financial statements, perform a Discounted Cash Flow…
Tag: Stock Market
Rampant Stock Market Speculation and Volatility
The Dow Jones Industrial Average (DJIA) has moved up to 25,605 points as of June 12, 2020. This is a 37.7% increase in DJIA since the March low of 18,591 points. Similarly, S&P 500 has moved up from March low…
Security Analysis – Book Of The Month (2/2)
The Security Analysis, written by Benjamin Graham and David Dodd, was the textbook that Warren Buffett used in college, when he studied under Ben Graham. Buffett attributes his investment success and valuation skills to this book. Some of you might…
Disconnect Between The US Economy and The Stock Market
The stock market, for the most part, reflects the condition of the economy. So, if the economy is in a bad shape, then the stock prices will drop and reflect those worsened economic conditions. Mr. Market has this bad habit…
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What Does It Mean To Buy Low, Sell High?
Buy low, sell high is a strategy where you buy stocks or securities at a low price and then sell them at a higher price. Buy low, sell high is definitely easier said than done. I know I started off…
Should Public Companies Be Allowed To Fail?
Shareholders are the owners of public companies. The CEO is elected by the shareholders to undertake the daily operating decisions of the company. It is important to understand that running a business is a risky endeavor, and business officials are…
If Something Cannot Go On Forever, It Will Stop.
The US Economy is in uncharted territory. All non-essential businesses have shut down to curtail the spread of virus, the Federal Reserve is flooding the market with cash by buying just about anything it can get its hands on, the…
Where Is The US Economy Headed?
On April 9, 2020, the Department of Labor released new unemployment insurance weekly claims for the previous week to be 6.6 million. More than 16 million people have lost their jobs so far, and if we compare this to the…
My Thoughts On The Current Stock Market Condition
The bears have taken over the stock market, and the market volatility has spiked up due to financial and economical uncertainty. For the past couple years, as a value investor, I have been sitting back and looking at the stock…
Is A Global Recession Inevitable?
The stock market has been very volatile this past week. The Dow Jones Industrial Average dropped 10% on Thursday (3/12/2020) due to fears of coronavirus. This was the largest one day drop in US stock market since Black Monday of…
Is Coronavirus The Black Swan For The Stock Market?
Economy is like a machine, which has multiple interlocked gears that need to function in harmony. As Ray Dalio explains in How the Economic Machine Works, anytime there is a problem in one gear, the other gears will be affected…
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3 Ways To Hedge Your Exposure To The Stock Market
You might have heard that portfolio diversification is the key to protecting yourself from any market downturn. There are many ways to diversify your holdings, from investing in bonds to commodities to currencies to real estate. The list goes on.…
Current Market And Economic Conditions Across The World
Investors pay close attention to how their individual stocks are doing. While it is important to scrutinize your individual investments, it is also crucial to pay attention to global economic conditions. Globalization is a boon and bane at the same…
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What Value Investing Has Taught Me
I started by "investing" career by trading penny stocks, then learned the ropes to technical analysis. In college, I used technical analysis to trade forex and write code that would execute trades on my behalf when it noticed certain technical…
10 Stocks for 2020
Since the Civil War, United States has been in a recessionary period once every 10 years. This has been the first decade long stretch when recession was kept at bay. On top of that, the stock market keeps climbing to…
BBB Rated Corporate Bonds
A corporate bond is a debt security issued by a corporation that wants to raise cash for Merger and Acquisition (M&D) activity, to expand its ongoing business, to support current operations, etc. It would be highly time consuming for average…
3 Stocks To Buy During The Next Stock Market Correction
The stock market has been all over the place lately. With the volatility seen in the stock market, it appears that the bears are gaining strength. This aging bull market might get a correction in the near future. This is…
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Investing In Medtronic (MDT)
I was recently reading about the Micra pacemaker, which is one of the many medical devices manufactured by Medtronic. Micra is one-tenth the size of its competing models, and attached directly to the heart. This means there are no wire…
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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