One of the most famous ratios used by value investors is the EV/EBITDA ratio, or the Enterprise Value to Earnings Before Interest, Tax, Depreciation, and Amortization ratio. Value investors use it to evaluate a company. The EV/EBITDA ratio is used with or instead of the P/E ratio. Let’s break down this ratio into two parts: […]
International trade has been an invaluable way for countries to make money and obtain goods. From 3,000 BC to the Roman Empire to the Age of Exploration and to modern-day, trade has been focused on commodities and other valuable goods. The countries that controlled the trade routes were able to obtain great wealth and power. […]
When it comes to investing, many investors with large amounts of capital use the principle of activist investing (not to be confused with active investing). Activist investing involves buying a large stake of a company (see the examples below as stakes depend on the company). These stakes give the investor influence over the company’s decisions […]
Many financial enthusiasts have most likely heard of the film The Big Short, adapted from the book by Michael Lewis with the same title. The story follows one of the greatest trades in Wall Street history where a hedge fund manager, Michael Burry, from California predicted the financial crisis of 2008 and made his investors […]