Posts by Andrew Stotz
Do Not Avoid Risk, Manage It
An essential part of investing is risk management; in the long run risk management often matters more than picking the highest performing assets at certain points in time.
Read MoreSeduced by Cricket with Suresh Mahadevan
My Worst Investment Ever: Was an angel investor in a startup that tried to harness India’s other religion – cricket. The company’s fantasy cricket app was to be first of its kind. Invested US$100K, was seduced by the fact that noted cricket personality was solo founder.
Read MoreYou Can’t Plan for a 1,000-Year Flood with Jason Bible
My Worst Investment Ever: House in smart part of Houston refurbished for flipping valued at US$1m. Hurricane Harvey drenches city for many days. Project house flooded out and ruined, saying goodbye to US$250k.
Read MoreDouble Check the Worst Case with Scott Carson
My Worst Investment Ever: Scott and a consortium invested in distressed home loans in Chicago. The deal went south and legal proceedings dragged on. He bought out fellow investors and closed the deal, but lost US$250,000 in the process.
Read MoreVMC: What Is Free Cash Flow to the Firm?
Free cash flow to the firm (FCFF) is the cash flow that a company is ‘free’ to distribute to all providers of money (both, debt and equity) without damaging its growth opportunities.
Read MoreVMC: WACC – Theory versus Reality
Since debt is cheaper than equity, in theory, this would mean that a company would prefer to be fully funded by debt to minimize its cost of capital. However, it’s not the case in reality that a company has a capital structure that is 100% debt.
Read MoreGold Can Shine in Market Downturns
Gold has been a store of value for thousands of years and is sought for in times of uncertainty. Gold is highly liquid, bears no credit risk, and can work as a true diversifier to your portfolio as it usually has a low correlation to other asset classes.
Read MoreOverreliance on or Ignoring the Experts Can Both Do Damage
My Worst Investment Ever: My worst investment, in terms of stupidity, but not the biggest loss, was when I starting acting on information I heard on a radio program about investing in stocks.
Read MoreOne of Thousands Who Followed the Herd to Big Losses in the Dot Com Era
My Worst Investment Ever: Many friends around me were talking about the idea of start-ups and later selling the “company” to some big guys on The Street, such as Yahoo or whoever, and making billions from this Internet dream.
Read MoreMissed Opportunity Stems from Hasty Decision on a Stock
My Worst Investment Ever: I sold all my stock at this price to protect the VND1,000/share gain! After my apparently overzealous reaction, the share price doubled over the ensuing six months.
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