Beginner investors focus mainly on EPS growth. Which makes sense. If a stock trades on EPS, then the faster the earnings grows, the faster the shares should appreciate, right? More knowledgeable investors will look at revenue growth and margin expansion, along with EPS growth. The most sophisticated investors will also look at organic revenue growth. Continue reading “Why Organic Revenue Growth is So Important”
I find that talking about bitcoin is a lot like talking about President Trump. Either you love it or your hate it; there’s no in-between. Just so you know, I have no personal investment in bitcoin. At first, I thought it was the stupidest thing ever. Why would you pay for something that has no tangible value and doesn’t exist outside of a computer? But I have talked to many people well versed on the subject and I can tell you, it’s a little more nuanced than you think.
I remember when I first started investing. I read a couple of articles (books were TL;DR) and I thought I knew everything. Besides, my idiot friends were investing and made money, so how hard could it be?
I actually did pretty well with my first trades. Of course, none of that had to do with skill. First, I got lucky with many of those picks. Second, I started investing in a bull market, so it actually would have been harder to lose money in that time period.
Now that I’m a much more knowledgeable investor, these are the things that I was doing wrong, and you probably are too.
Being a hedge fund analyst has taught me a lot about getting value for your money. You buy stocks that are trading below their intrinsic value and you make money once other investors see the true value of the business. I’ve taken this lesson and applied it to my spending; I don’t mind spending more for something, as long as I’m getting the right value for it. PlatePass is the complete opposite of getting value. The service they provide is minimal, yet they completely gouge you on the pricing.
Like most couples, my wife and I used to fight about money. Either I was complaining about her spending, or she was complaining about my spending. Actually, I used to do more of the complaining, but marriages are about equality, so who’s counting, right?
But that was a long, long time ago. Now, my wife and I think it’s ridiculous when we see or hear other couples fight about money. Don’t get me wrong – we fight about a lot of things. Just not money. Actually, let me correct that. My wife yells at me a lot. Then I grovel and apologize. Is it still called fighting when one side utterly and completely surrenders?
Every investor’s dream (especially mine) is you buy a stock, and then it gets taken out the next day, or shortly after. This has happened a few times in my career, and it always feels like hitting the jackpot. Okay, so it’s not like winning the Powerball jackpot. It’s more like hitting the all green lights on the way to work, jackpot. Now, if I was investing $100bn, it would feel pretty close to winning the Powerball:) Nonetheless, it’s still a good day when it happens.
Another year, another new regulation! Although we’re only a few weeks into implementation of MiFID II and it may seem like nothing has changed, I can assure you that this will have a major impact on not only the sellside, but the buyside as well. If you’re looking to get into the industry, you need to be aware of these changes, as it will not only affect demand for these types of jobs, but the economics as well.
I didn’t grow up in a wealthy family. As a child, I don’t remember staying in hotels very often, if at all. Whenever we took vacations, we stayed with family or friends, or went camping. Now that I’m older, I can see why. The two most expensive parts of a vacation are airfare and lodging. Sometimes you have no choice but to fly, so if you can cut that lodging cost down, it results in big savings! Continue reading “How Much Better is a 5-Star Hotel vs. a 3-Star One?”
It wasn’t the good news I was hoping for (a takeout), but it was good enough. This morning, B. Riley announced it was taking a 29.4% financial stake in bebe stores. This announcement is good for two reasons. First, B. Riley is converting its bridge loan into equity, which takes away any risk of bankruptcy. Second, all transactions were done above the last closing price of $4.44, confirming my view that bebe stores is significantly undervalued.
Okay, a couple of things need to be said about the title. First, I’ve never, ever, said this to anybody, although I’ve wanted to many, many, times. Second, there are repercussions to saying something like this. Any money you save may be totally offset by medical payments. Third, although getting fat asses out of your car will save you money, this really applies to any and all excess weight in your vehicle since this all affects fuel economy.