Speculation with Investing
Speculation refers to ‘Guessing’. Speculating is more commonly inferred with gambling than with investing; but in reality, it exists in both to certain degrees.
Phase III – Sophisticated Investing
Phase III is a series of lessons that elevates the investor to a higher level of sophistication. Learn about PUTs, derivatives, fixed securities, impact of interest rates, economic issues and fine tuning of understanding notes to financial statements.
PUT Options – Leverage Tool for Value Investors
PUT options are an excellent tool to leverage the realized return for a value investment based portfolio of securities. In general, options are very risky financial derivatives and are not recommended for unsophisticated investors. In laymen terms, options are classed as mildly speculative instruments in the world of investing. The key to proper use is to eliminate the risk aspect by only utilizing PUTs in a very restrictive set of circumstances.
Vertical Integration in Business
Vertical integration in business refers to the process of gaining control over more steps of the product production stream. Whenever a business obtains or can greatly influence any one of these steps along the process of producing and selling a product, it is referred to as vertical integration.
Economic Bubble – The Great Dutch Tulip Craze
Universally accepted as the first economic bubble, the Great Dutch Tulip Craze, also known as Tulipmania, of the late 1620’s to February 1637 serves as a reminder to all of us involved in business, that value can be driven by greed and not intrinsic worth. During this time period, a tulip bulb rose in price from 60 times its original value to over 150 times the original price.