People think of investing as managing money. But it’s really about managing risk. Risk is the chance that something bad will happen. When we invest, we don’t want bad things to happen to our money. So we try to avoid excessively risky situations. The problem is, [...]
Cash is king! Cashflow determines what a business is worth. When investors put money into a company – whether it’s private, public, high tech, or old school, they want a return on their capital. Those returns come from cash the business can sustainably generate from their [...]
When does your alarm go off? Henry David Thoreau once wrote, “The mass of men lead lives of quiet desperation.” Today, he might say, “Most people are asleep.” In the early 19th century folks had to fight just stay alive: to feed, clothe, and keep themselves [...]
What we call things is important. How items are defined can have real-world implications on how they’re treated. Consider the latest changes in the tax code. Individuals can now only deduct up to $10,000 of the State and local taxes they pay. So high-income people [...]
