Posts by Andrew Stotz
Put the Proven Power of Diversification on Your Side with Lex Sokolin
My Worst Investment Ever: Gordon-Gekko type manager invoked team spirit, told staff to invest in Lehman’s stock. No breaks for Lehman’s in US bailouts. Company stock and Lex’s 401K go to zero.
Read MoreStart-Ups Always Look Great, Plan for the Worst with Jen Greyson
My Worst Investment Ever: Becomes investor and CEO to re-invent corporate world. Costs sink in as deadlines pass and keep passing. Major complications hit.
Read MoreDo 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.
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