Berkshire Hathaway is a conglomerate of many different businesses. It is currently the 8th biggest publicly traded company in the world, with a market cap of $426 billion. It is operated by the world’s most famous investor, Warren Buffett, who also has the majority of his own net worth in … [Read more…]
Investing can be risky. Risky investments sometimes lead to big profits, but many people end up losing a lot of money. However, there are also many low-risk investment options that can help you grow your savings slowly but safely. At the very least, they are much better than leaving your … [Read more…]
It is often said that “beating the market” is incredibly difficult and that even most professional investors are unable to do it consistently. At the same time, we regularly hear stories of legendary investors who were able to beat the market successfully over many decades. This includes Warren Buffett, Peter … [Read more…]
Investors are often told to buy both stocks and bonds in order to diversify. But what is the actual difference between the two? Put simply, stocks are shares of companies that represent part ownership. When you buy a stock, you become a part-owner of the business. However, bonds represent debt, … [Read more…]
Unfortunately, it is not possible to invest in YouTube stock directly. That’s because Google acquired YouTube for $1.65 billion in 2006 and now owns 100% of the company. However, you can gain exposure to YouTube by investing in Google-parent Alphabet, Inc. This is the parent company that owns Google, YouTube, … [Read more…]
ETFs and mutual funds are the two most popular types of investment funds. They are commonly used by both regular investors and large institutions and are considered a great way to have a diversified portfolio. Holding a diversified fund is considered less risky than holding individual stocks, and many of … [Read more…]
If you own stock in a company that goes bankrupt, then you will probably lose your entire investment. When a company files for bankruptcy, common stock owners are last in the order of who gets paid. This is the order of priority of the claims on the company’s assets: Secured … [Read more…]
Warren Buffett is the world’s most famous investor. According to the Forbes billionaire list, he is the third richest person in the world with an estimated net worth of $70.5 billion at the time of this writing. Most of his wealth and investments are concentrated in his massive conglomerate, a … [Read more…]
A recession is a widespread decline in economic activity that lasts for at least a few months. An economic depression is a recession that is either very long, very severe, or both. Recessions are a normal part of the business cycle and occur every 5 to 10 years, while depressions … [Read more…]
Shorting, also called short selling, is a way to bet against a stock. It involves borrowing and selling shares, then buying them back later at a lower price and returning them while pocketing the difference. If the stock goes down, the trader makes a profit, but there are several major … [Read more…]