People usually get better at things over time. We're better farmers, faster runners, safer pilots, and more accurate weather forecasters than we were 50 years ago. But there's something about money that gets the better of us.
You own part of the company (aka a share in the company). The price of that share can fluctuate given what people think the company is worth (or will be worth) and what they are willing to pay for a share.
I am not suggesting you put all your assets in funds that track this index. Instead, you should invest in a globally diversified portfolio of low-management-fee index funds in an asset allocation suitable for you.
Here are two words I want every investor to say to their broker or advisor: "No alpha." "Alpha" is the excess return of a fund over its benchmark index. Nothing has caused investors more harm than the often futile pursuit of alpha. Want proof?
uestions that inevitably always arise in my Introduction to Investments (ECO/FIN 112) classes are: "What do I need to do in order to beat the stock market? How can I select the 'winners?' What is the most important variable when researching a particular company?"
I encourage women to create a financial plan even if they are now in a committed relationship. Your financial plan should include your ability to own a home, take a five-star vacation and, of course, retire without the fear of outliving your money.
If you want to hold cash, make sure it is held as cash in either currency or a very liquid guaranteed instrument like an FDIC guaranteed bank CD. Don't take your broker's word for it, make him show you the documents.
In speaking with my financial advisory clients, I find the most misunderstood concept is the difference between nominal returns and real returns. And Wall Street brokers and bankers are very quick to take advantage of this situation.
Bad date last night? Don't despair. It's not as bad as you may think. Here's some good news: you may not know it, but when it comes to your money, that bad date can teach you an awful lot about successful investing.
The ways in which an entrepreneur might best connect with venture capitalists has been covered by a number of other VCs across the web, but we thought it might be helpful for entrepreneurs to put this question into context by providing actual operating data regarding deal flow for our firm.