Introduction I’ve seen a lot of frustration and disappointment around the stock market price stagnation of the Philippine Stock Exchange Index (PSEi). And honestly? Those concerns are valid. If you had invested in an index fund tracking the PSEi from 2015 until today, you’d actually be down in terms of Read more…
by elmads Introduction Welcome to the Zero to Hero Portfolio, inspired by the principles outlined in my book. This portfolio demonstrates how small, consistent investments in equity index funds can lead to significant financial growth over time. Regardless of one’s background or level of financial knowledge, this approach can transform Read more…
When deciding which friend to financially assist with $2,000, one might consider trustworthiness and financial behavior, similar to how a credit rating agency assesses a company or nation’s ability to repay debt. Credit rating agencies emerged in the 19th century to support investors in railway companies by evaluating the creditworthiness of business ventures. These agencies play a crucial role in today’s debt markets by providing ratings that influence lending decisions. Despite their importance, the industry has faced criticism and calls for regulatory reform, particularly after the 2008 financial crisis highlighted issues like conflicts of interest and the accuracy of ratings.
by elmads Introduction Most people, if not all, want a comfortable financial life. Comfort in the sense that our finances have the capability to cover our necessities of life and still have the excess cash that can be used for leisure. The question here is: what is the comfort number? Read more…
by elmads Introduction The rate of the current US Treasury bond, also known as the US Government bond, is an integral part used by most investors worldwide in their discounted cash flow model—projecting an asset’s cash flow in the future and discounting it in today’s value—which is to know the Read more…
by elmads Introduction Investing has been getting more traction now than before. This is also partly thanks to the internet and social media, where information travels faster and is easier to acquire. People are starting to turn their attention on the concept of investing—employing their own money to make money Read more…
by elmads Simple and Compound Interest Using Bank Savings Accounts In a bank savings account, specifically a fixed-rate savings account for more than a year, do you think you are really receiving the actual annual deposit rates that the bank states in their terms and conditions? Clearly not, because taxes Read more…
by elmads Introduction “To me, saving was as natural as breathing: I knew when I saved $10, I was really saving $100 or $1,000 because of the future growth”. —Charlie Mungers In my previous blog “A Dollar Today is Worth More Than a Dollar Tomorrow – The Time Value of Read more…
by elmads Introduction The time value of money is a financial concept that explains that every amount of money that we receive, save, and invest has a corresponding opportunity to grow more in the future. Let me give you an example. Let’s say you have $1,000 right now. What can Read more…
by elmads Introduction “Give me a firm place to stand and a lever, and I can move the earth.” -Archimedes Lever, an invention of our ancestors that substantially spurred human progress. It is used as a means to move a heavy or firmly fixed load with one end when pressure Read more…