Current Events

Let us break this down 1.A bunch of investors give money to an organization 2.Who uses that money to purchase buildings 3.On a certain date, money is passed back to the investor 4.This all equals a REIT Now let us piece this together; first, a bunch of investors give money to an organization, (like crowd-sourcing). Now that organization uses that money to purchase buildings, usually in a specific area...

The market was feeling like Taylor Swift this morning, hitting “22”,000, maybe it will celebrate tonight by dressing up like a hipster? The Dow toppled its highest mark ever and the Trump administration is taking credit for the recent hike even though they claimed that the market was in a bubble when it was surging under Obama. Let's take a quick step back and explain how the Dow Jones broke another...

Let us break this down 1. You give some money to invest in municipal bonds 2. This money is invested in local government projects 3. Like the train system in Santa Monica 4. Some time passes 5. You receive yield payments back from your bond 6. You don’t have to pay taxes on your yield 7. #moneyface 8. This all equals a municipal bonds Now let us piece this together; first you give some money to invest...

1. You have a company that is valued over $10 Billion in the market 2. You have a company that is valued at over $2 Billion but under $10 Billion in the market 3. You have a company that is valued at anything under $1 Billion The Keys To Understanding The value is determined by something called Market Capitalization; this is calculated by multiplying the number of shares that are out in the market...

Let us break this down 1. You fall in love and have kids 2. You decide to sign up for life insurance 3. You pay your life insurance premium every year 4. Some times passes and you keep paying your life insurance #goodboy 5. One day you have an idea to surf #hangtenbro 6. There are these killer waves but all of a sudden a storm hits #uhoh 7. You wipe out and start to swim but there is a shark behind...

The world of finance has been very exciting so far in 2017, from cryptocurrency to acquisitions like Whole Foods and Amazon and companies like Tesla soaring to take over as one of the top car companies in the world. The Dow Jones is still at a record high, the unemployment rate is low and IPOs are still coming out, looks like 2017 is going be one for the books. We look forward to reporting on the world...

1. The market makes prediction about your profit 2. Your quarter report date comes up 3. You take your companies profits for that quarter 4. You divide them by all the common stock out in the world 5. You come up with a number that is either positive or negative 6. The market freaks over your number beating or falling behind estimates #dontpanic Let us piece this together You are in charge of earnings...

1. You are an executive at a Fortune 500 company 2. That has a lot of cash on hand 3. You don’t know what to do with it 4. You talk with your fellow executives 5. You think and come up with an idea 6. To use your cash and buy stock back 7. After some time this increases your companies earnings per a share 8. This all equals a common trick called Buyback! Let us break this down, you are a top executive...

1. You travel internationally 2. You like what you see in their economy 3. You start thinking how you can “invest” into their economy 4. You look into investing in “emerging markets” 5. You invest and realize how up and down the market is 6. You realize that this is a great diversification of your portfolio Let us break this down, you decide to travel internationally and have a blast, now you want...

1. Two companies get together to talk 2. Company A makes an offer 3. The offer is thought about by Company B 4. Then agreed upon in a handshake deal 5. Company A acquires Company B by buying their stock at a set value 6. Stock shoots up 7. Company B gets bought out and is seeing money #moneyface Let us piece this together So first two companies get together to talk, let us stay current and talk about...

Let us break this down 1. An Idea is born 2. Company starts in a garage 3. Becomes a bigger company 4. Files proper documents with a bank and SEC 5. Raises money 6. Chooses a date 7. Rings the bell 8. All equals an IPO Now, let us piece this together, you think of an idea one day and run with it, now you start this company in your garage and slowly it grows, from you and a couple buddies to actual...

The Honeymoon phase for Warren and IBM* has come to an end. Buffet made headlines again last week as he sold a third of his stake in IBM. Buffett previously owned approximately 80 million shares and now only owns approximately 50 million shares, holy batman that is a lot of shares! And IBM’s stock went tumbling moments after this happened. But why? *Disclaimer: I worked for IBM from 2013 to 2015. This...