Tag: Investment

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The European Carbon Market

Gillian Guo

The European carbon market doesn’t pay any attention to spiking inflation or climbing interest rates, and its price – which has doubled in the last year – might only keep going up… What exactly is a carbon market? The best way to set a price that’s both high enough to incentivize polluters to cut their emissions and low enough to avoid sending whole industries into bankruptcy is the “cap and trade” system. Under the “cap and trade” system, the European Union (EU) allows firms in polluting industries to emit greenhouse gases, but only up to a set amount. The companies that … Continue reading The European Carbon Market

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The World’s Going Renewable. So Why Are Renewable Energy Stocks Getting So Little Love?

Gillian Guo

Renewable energy stocks have fallen out of favor after a stellar rise last year, with the European Renewable Energy index down around 25% from its January peak. But several investment banks – from Goldman Sachs to Royal Bank of Canada – think the recent selloff could present you with the perfect entry point… Why are renewable energy stocks so attractive right now? 1) They’re cheap relative to their growth potential The selloff has left renewable energy stocks looking cheaper than tech-heavy growth stocks – not just in Europe, but globally. And unlike tech companies that benefited from a short-term, pandemic-driven demand boost, renewable energy companies will … Continue reading The World’s Going Renewable. So Why Are Renewable Energy Stocks Getting So Little Love?

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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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Study notes from ‘Outsmarting the Crowd’

Gillian Guo

3.Sound investing is about rationality, not emotions. Say you own stock in Starbucks and read in the paper that the company’s valuation fell by 10% in just one day. Your emotions may urge you to sell your shares to avoid getting caught on a sinking ship, but don’t listen to them. If you approach the situation rationally instead, you’ll see that a 10% loss is an opportunity to buy more shares at a lower price. After all, you know the company has serious potential. But rationality isn’t all you need. Investing also requires great timing. It’s essential to know when … Continue reading Study notes from ‘Outsmarting the Crowd’

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Study notes from ‘Rich Dad’s Cashflow Quadrant’

Gillian Guo

‘My educated dad was a voracious reader of books, so he was word-smart, but he was not financially literate.’ Robert T. Klyosaki 5. Working hard and working smart are two different things. 6. Today, we live in what is roughly defined as the ‘Information Age.’ It marked the end of the ‘Industrial Age’. It was also the beginning of the end of for secure, unionised jobs and good government pensions. In today’s economy, we can’t rely on the government to look after us. We need to take our financial security into our own hands. If the government raises taxes to … Continue reading Study notes from ‘Rich Dad’s Cashflow Quadrant’

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Study notes from ‘Common Stocks and Uncommon Profits’

Gillian Guo

5. When considering a company’s investment potential, you’ll want to collect detailed information about the company from every possible angle. Of course, you could easily track down a trader and ask her which companies she would recommend investing in. However, there’s no guarantee that she’ll give you accurate information, because traders have to protect their own interests. Instead, employ the scuttlebutt method: dig for information from every possible source. Contact vendors, customers, former employees and research scientists or executives in trade associations. As long as you ensure that you won’t make the information public or out your informant. Contacting a … Continue reading Study notes from ‘Common Stocks and Uncommon Profits’

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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’