Author Archives: dajian888

Why “Shareholder value” Is Often A Lie

“Shareholder” – The over-simplified Term We often hear that businesses are supposed to maximize shareholder value. It certainly sounds reasonable to beginners, but once you get to know more about stocks, you will find shareholders are rarely a single group … Continue reading

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The Economics Of Buying Your First Home

I have always told my friends that not everyone needs to learn advanced Math, but almost everyone should take two classes when they are in high school: Psychology and Finance. All our education, taking so many years, and getting so … Continue reading

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Liquidity and Ponzi Scheme

Every time, when I saw some news talking about how investors lost hundreds of billions of dollars because index dropped 3% in a day, I can’t stop thinking that this kind of news is designed to get attention of the … Continue reading

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The Double-Agency Problem In Investing

In investment, the “agency problem” is commonly known, which refers to the fact that the management of a company usually acts on their own interests, at the shareholders’¬†expense. There many examples of such problems: 1. Expensive Acquisitions. Among all the … Continue reading

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Tesla: A Checklist Of Bearish And Bullish Points

The Euphoria of Growth Stocks The last 3 years have been a very good time for the growth stocks. For many of the star companies, the old conservative valuation models based on book value and earnings yield are being replaced … Continue reading

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New Federal Fund Rate Projection and Its Implications

The New Projections A rising short term interest rate is not any news to the market. The only thing people don’t know is when and how fast it would happen. To the surprise of many market participants, the schedule of … Continue reading

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Thinking as a business owner – part II

As I said in my previous post, in theory, we, as long term investors, should all think as business owners. As the teaching of Ben Graham and Warren Buffett, it is right to think we own a piece of a … Continue reading

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