Compound Your Way to Financial Freedom

Compound Your Way to Financial Freedom So, how does Value Investing help us achieve Financial Freedom? Let me give you an illustration. We assume that Charles is going to win the Money Game and achieve financial freedom solely by Employing his Money to work for him. Charles monthly basic need is $2,500, so he must employ his money in a way that gives him $2,500 a month. Through Afterthe reading …

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The 4 Question Check List

The 4 Question Check List There is some probing questions you can ask when faced with a company you suspect has a competitive advantage   Q1: What is the Value the business is providing? Lets take for example we talk about KFC. The value is yummy chicken. We then move on to the next question.   Q2: Can you get it else where? The answer is yes to this question. …

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Competitive Advantage Part 2

Competitive Advantage Part 2 In the last post about competitive advantage we looked at the first 2 ways which a company can build an economic moat. Today let’s explore the other 3 ways: Low Costs or Prices Offering the same or similar product or service at a lower price can be a powerful economic moat, especially in commodity industries. Airlines and PCs are a couple of commodity industries. Cost advantages …

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Competitive Advantage Part 1

Competitive Advantage Part 1 In general there are 5 ways for a company to build a competitive advantage over its peers. Warren Buffet calls this competitive advantage as “economic moat”. An economic moat is the ability of the company to keep its competitors at bay from hurting its profits. The wider the moat, the longer the company can protect its profits. The deeper the moat, the more profitable is the …

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Principles of Value Investing

Principles of Value Investing Value investing begins by asking the right questions when deciding whether to put your money into the stock market. Most people go for short term gain without any fundamental strategies. You can tell by the questions they ask which ultimately affects their decisions. They ask things like which stock is going to fly or take brokers’ recommendations. They do not do their own study because they …

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