Make money and learn

Floats and moats

Floats and moats

I am going to talk about two diferent ideas. Floats. And Moats.Over the last few months, I have been obsessed by these two ideas.I have spent a lot of time researching them and thinking about them and also about they might be related.It’s been a fascinating journey so far.This talk is the story of that… Continue Reading

ETF explanation: Part 3

ETF explanation: Part 3

If you’ve read part 1 of the ETF explanation, you’d know that mutual funds are of various kinds (fixed income funds, equity funds, money market funds, etc). Similarly, there are various kinds of ETFs, some of which we will cover in this part. Inverse ETFs: If you think that the market is going to fall,… Continue Reading

ETF explanation: Part 2

ETF explanation: Part 2

If you’ve read ‘The Little Book of Common Sense Investing’ by John Bogle (if you haven’t, you should.), you’ll know that most mutual funds don’t beat the market. This is because mutual funds require large costs. The managers might be able to generate a return higher than that offered by the market, but costs can… Continue Reading

ETF explanation: Part 1

ETF explanation: Part 1

A mutual fund is a company that invests people’s money for them. There are four categories of mutual funds, based on the types of securities they buy: Equity funds Fixed income funds Money market funds Balanced funds and asset allocation funds EQUITY FUNDS Equity funds buy and sell stocks. They make money in two ways:… Continue Reading

Warren Buffet’s opinion on Gold

Warren Buffet’s opinion on Gold

Gold is consistently overvalued, said Buffett. If one were to melt down all the gold and form it into a large cube, said Buffett, it would only be about 68 feet on each side — small enough, observes Buffett, to be nestled in the infield of a baseball stadium. And yet, the monetary value of… Continue Reading

The parable of the ox

The parable of the ox

In 1906, the great statistician Francis Galton observed a competition to guess the weight of an ox at a country fair. Eight hundred people entered. Galton, being the kind of man he was, ran statistical tests on the numbers. He discovered that the average guess (1,197lb) was extremely close to the actual weight (1,198lb) of… Continue Reading

Finance/Investing 001: some basics

Boiling down to basics, here are the ways that you put money to work: Strict “Investment” means purchasing a stream of future income. Classic examples are farmland, apartment buildings, drilling rights, bonds, private lending, corner stores, factories, intellectual property, anything that generates ongoing income. Speculation means buying something because you think that someone will pay more for… Continue Reading

Where has all the money in the world gone?

All actual “money” is debt. All of it, including monetary gold, etc. (Don’t argue with me yet, I’ll get to that.) Imagine a pretend world with no money, some kind of primitive villiage or something. Now let’s invent paper money. You can’t just print a bunch of paper that says people have to give you… Continue Reading