economic machine
Article

Ray Dalio explain how the economic machine works

Transactions are the economy The economy is made up of millions of transactions between people, government and businesses. When we exchange money or credit with someone for goods, services or financial assets, a transaction is created. The action of spending drives the economy – one person’s spending is another person’s income. Credit is important and […]

Graham Number
Blog

Graham Number (grahamnumber)

Graham Number is calculated as follows: Graham Number = Square Root of (22.5 * Book Value * Earnings per share) = Square Root of (22.5 * Net Income * Shareholder’s Equity) / Shares Outstanding- He wrote in “The Intelligent Investor” (1948 version) regarding to the criteria for purchases:-  “Current price should not be more than […]

Few Quotes About Mr. Market
General Information

Few Quotes About Mr. Market

Emotionally unstable, Mr. market veers from years of euphoria when he can see only the favorable possibilities of industries,companies, and their stocks to profound pessimism when he’s so depressed he can see nothing but trouble ahead. Mr. market persistently teases investors with gimmicks such as surprising earning, starting dividend announcements, sudden surges of inflation, inspiring […]

Economic Ideas: Adam Smith on Free Trade, Crony Capitalism, and the Benefits from Commercial Society
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Adam Smith on Free Trade, Crony Capitalism, and the Benefits from Commercial Society

Economic Ideas: Adam Smith on Free Trade, Crony Capitalism, and the Benefits from Commercial Society Adam Smith’s central contribution to economic understanding was surely his demonstration that under an institutional arrangement of individual liberty, property rights, and voluntary exchange the self-interested conduct of market participants could be shown to be consistent with a general betterment […]

Leonardo Da Vinci
Thoughts

Leonardo Da Vinci

Isaacson was drawn to Da Vinci as the ultimate example of the main thematic of his previous biographies, many of which, coincidentally are heroes of Charlie Munger – Einstein, Lincoln and Newton. Isaacson describes that thematic as “How the ability to make connections across disciplines – arts and sciences, humanities and technology – is a key to innovation, imagination, and genius.”   Leonardo […]

valueandprices
Article

The Wisdom of Lord Keynes

Way back in 1925, John Maynard Keynes provided a wonderful insight on the role of speculation in shaping stock returns. Observing the predilection of investors to implicitly assume that the future will resemble the past, Keynes warned: “It is dangerous to apply to the future inductive arguments based on past experience unless we can distinguish […]

valueandprices
Charlie Munger

Power of collective learning

Munger: Let us look at the field of investing. Before the stock market crash of 1929, there was no structure and logic for investing in stocks. Benjamin Graham’s two major works, Security Analysis and The Intelligent Investor created an intellectual framework for sound investment. His framework had two key ideas (1) Mr Market (2) Margin of Safety. Even today Buffett and I […]