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Showing posts from August, 2022

Simple Ways To Measure Stock Valuation Using Company's Earnings

Investing in stocks is quite risky if we don't do proper analysis. Stock prices can go up and down at any time. Even sometimes prices can go very low without any clear reason. One way to minimize the risk is by investing in mispriced stocks, i.e. stocks that are priced lower than their actual value (undervalued), rather than picking stocks only because of hype or positive trend. This strategy is often called value investing. The term value investing was first introduced by Benjamin Graham (the mentor of arguably the most successful and well-known investor of all time, Warren Buffet) and David Dodd in the 1920s. By investing in an undervalued stock, we expect the price to return to its fair price one day, so we will be less worried when it goes down. A lower price can even become an opportunity for us to buy more. Some Simple Valuation Methods Using Earnings There are various methods to measure stock valuation. Some of the simpler ways are involving the company's earnings, su...

Psychopath Test: Can You Think Like A Psychopath?

Psychopathy is a mental disorder. It is often informally described as ASPD (Antisocial Personality Disorder). Psychopaths often possess some common traits, such as a lack of emotional responses, a lack of empathy, impulsivity, and having a tendency to show antisocial behavior. In fact, most research agrees that around 1% of the population is psychopathic. Are you one of them? or do you have the potential to become one? Below are some questions we can use to see if we have the capability to think like a psychopath. In each of these questions, don't give the first answer that comes to your mind. Try to think like a psychopath as hard as you can! QUESTION 1 You were a middle-aged man. You had a nephew. One day, he had his birthday. At night, when he'd already fallen asleep, you came to his house and left him a birthday present, a brand new expensive bicycle, wrapped in a box. The next morning, he woke up and felt very happy after knowing you gave him the present. Then, he opened t...