Tag: Finance

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How to pitch a stock?

Gillian Guo

Stick with industries you understand. 2. Qualitative approach: Look at the overall economy and choose a sector and industry that you think has particularly positive/negative cyclical or secular themes. Then try to choose the best/worst company in that industry. 3. Quantitative approach: Use arbitrary parameters to filter the overall universe of stocks (e.g. below average P/E, high revenue and earnings growth, high ROE). Yahoo! Finance and MSN Money both offer free stock screeners. 4. There are three basic parts to an effective stock pitch: story, numbers, and valuation. 5. When delivering your stock pitch, note that it should act as … Continue reading How to pitch a stock?

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Private Equity Mania?

Gillian Guo

What’s Going On Here? Private equity firms have had their busiest-ever start to a year, inking more than $500 billion in deals around the world across the first half of 2021. Ultra-low interest rates have made private equity’s promise of solid returns more popular than ever – helping firms amass a mountain of investor cash. And since private equity deals almost always involve huge chunks of debt, low rates have also created the perfect environment for them to get busy buying. What is private equity? Traditional stock investments are in “public” companies: those listed on the stock market. But there’s a whole world out … Continue reading Private Equity Mania?

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How to turn Bitcoin Green?

Gillian Guo

The consensus is that bitcoin mining consumes a lot of energy and you may well wonder how bitcoin’s intensive energy consumption can be reconciled with many investors’ aspirations to help tackle climate change through the power of their portfolios. I thought now would be a good time to investigate the cryptocurrency’s current green credentials (or lack thereof) and explore what the prospects are of bitcoin mining becoming more eco-friendly in the future. It’s unclear exactly how much energy bitcoin mining uses. Cryptocurrencies are, after all, hard to track by design – and the studies that have attempted estimates have reached differing conclusions. The Cambridge Centre … Continue reading How to turn Bitcoin Green?

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Study notes from ‘Poor Charlie’s Almanack’

Gillian Guo

‘Once you’ve done something bad, it’s easy to take the next step and then you are a moral sewer.’ Charlie Munger His strict morality awareness and zero tolerance of breaking the law; he despised ‘creative accounting’ or any unethical practices e.g. accounting for derivatives- inflating books based upon values from speculation. This attitude and insistence of bottom line led his successful avoidance of consequences of 2008 Financial Crisis. 4. Learn from mistakes and not afraid of changing minds. If you find a new idea more useful, discard the old ones immediately. Welcome criticisms. ‘Only a very confident person is able … Continue reading Study notes from ‘Poor Charlie’s Almanack’