The Rule of 72

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The rule of 72 is a handy formula to determine approximately how long an investment will take to double, using a fixed annual rate of interest. It is used for compound interest and is helpful for simple mental approximations. How It Works All you need to know is the rate of interest. You divide 72 […]

Bonds Investing People

Analyzing Bill Ackman’s $2.6 Billion CDS Trade

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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 […]

Bonds Education Investing

Investment Grade and High Yield Bonds

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“In investing, what is comfortable is rarely profitable.” Robert Arnott Bonds are an important component of many investors’ portfolios. In the past, they offered a stable return compared to other investments such as stocks, which are more volatile. There are many types of bonds, but most of them typically fall into one of two categories: investment […]

Economy Education Stocks

Intro to Earnings

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Earnings: the thing all investors obsess about. Every company reports earnings and investors pay close attention to them. Investors look at metrics like EPS, EBITDA, P/E, and many more to judge the company and its stock. The company’s earnings are a very important factor, but understanding it can seem extremely overwhelming. In reality, earnings and […]

Education Investing

Intro to Leverage

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You gotta spend money to make money. Or rather, it takes money to make money. This is true because when capital is invested, it generates interest proportional to the investment. Therefore, the larger the investment, the larger the return. This is great if you have tons of money because it means you can make tons […]

Economy Education People

Elizabeth Warren and Student Debt

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If you are following the 2020 presidential election news, you’ve probably heard of Elizabeth Warren and her stance on student debt. Considered a front-runner in the Democratic presidential primaries, Warren has openly voiced her opinions on corruption and transparency in politics and business. Recently, though, Warren’s stance on student debt has become more and more […]

Education Stocks

Intro to Dividends

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While looking at various stocks, you may have noticed something called a dividend. Perhaps you saw a percentage that denoted the “Dividend Yield,” or you saw the “Ex-Dividend Date” and the “Payment Date.” As an investor, these are important concepts to understand, especially when choosing to buy a stock. Does it offer a dividend? What […]