It is better to be roughly right than precisely wrong.“ — Carveth Read

Investment comes from late 14c. Latin invest(v.)

to clothe in the official robes of an office

from Lating investire

to clothe in, cover, surround

Notes

ai and longlivety https://youtu.be/Jg2jJH1K0o8?si=SiAQC8UQN3PgOtpR&t=4690

concepts

Income

Diversification

Safety

dividends

inflation

stock

a piece of ownership in a company

fund

bond

a piece of debt of a company (think of it like an IOU)

options

earning

sales

dept

equity

Price-to-earnings ratio (P/E)

Price-to-sales ratio (PSR)

Return on equity (ROE)

Earnings growth

Debt-to-asset ratio

Mutual Fund exchange-traded funds (ETF) Index Fund

a basket of stocks or bonds

Individual retirement accounts (IRA)

are tax-advantaged vehicles designed for long-term savings and investment

Mutual Fund

Activetly managed

Index fund

An index fund is a type of mutual fund
Passevely managed

stock option program (ESOP)

Meta concepts

Valuation bubble https://www.facebook.com/spencer.greenberg/posts/10103608290957792

Basic

Order types

limit order
- to sell at or above the limit price
- A limit order is an open offer to sell at a certain price or better that you publish to the market.
- A limit order is an open offer to buy at a certain price or bellow that you publish to the market.
stop order
- A stop order is a trigger threshold, which, if passed, means your position will be sold ASAP at current market price.
stop limit
- combination of the two above
- A stop limit order is a trigger threshold, which, if passed, creates a limit order.

Associations

Decision Markers

Checking Important Company Fundamentals before Investing in a Stock

Earnings: This number should be at least 10 percent higher than the year before.
Sales: This number should be higher than the year before.
Debt: This number should be lower than or about the same as the year before. It should also be lower than the company’s assets.
Equity: This number should be higher than the year before.

Financial Measures to Consider before Investing in a Stock

Price-to-earnings ratio (P/E): For large cap stocks, the ratio should be under 20. For all stocks (including growth, small cap, and speculative issues), it shouldn’t exceed 40.
Price-to-sales ratio (PSR): The PSR should be as close to 1 as possible.
Return on equity (ROE): ROE should be going up by at least 10 percent per year.
Earnings growth: Earnings should be at least 10 percent higher than the year before. This rate should be maintained over several years.
Debt-to-asset ratio: Debt should be half of assets or less.

Notes

concepts

Meta concepts

Basic

Order types

Associations

Decision Markers

Checking Important Company Fundamentals before Investing in a Stock

Financial Measures to Consider before Investing in a Stock

Platforms

Guides / courses

Resources

books

tool

Notes

Links