Warren Buffet

Warren Buffet, management consultant The consequence of his incredible success finally caught up with Warren Buffet last year. At its 44th attempt, the S&P 500 finally grew faster than the book value of Berkshire Hathaway over a five year period. Mea culpa is expected in the annual letter to shareholders next month. What that has prompted is some retreading of the reasons why Berkshire doesn’t pay a dividend. In essence, this empire of insurance, stocks and real businesses has been built on compounding retained earnings. The Sage of Omaha keeps the…

Why Should I Invest?

Have you ever ask yourself “why should I invest?” Welcome to Investing Basics! If you’ve found your way here, chances are you’ve either got some money socked away or you’re planning to do so. But first things first. Why is investing a smart idea? Simply put, you want to invest in order to create wealth. It’s relatively painless, and the rewards are plentiful. By investing in the stock market, you’ll have a lot more money for things like retirement, education, recreation — or you could pass on your riches to…

Futures Market’s Basic Structure

The Basic Structure of the Futures Market In this opening section, we will take a look at how the futures market works, how it differs from other markets and how the use of leverage impacts your investing. How Futures Work You are probably familiar with the concept of financial derivatives. A derivative is simply any financial instrument that “derives” its value from the price movement of another instrument. In other words, the price of the derivative is not a function of any inherent value, but rather of changes in the…