The Ten Principles of Economics (true so true).

The Investment Banking Sector Explained.

Socially Irresponsible Investment Banking.

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The portfolio I will be constructing is based on the five Australian stocks highlighted in Smart Investor magazine. If you haven’t read the previous article on “Economic Moats” I would advise you to read that before reading this article. The tool I will be using for this is Google Finance, therefore you will need to sign up for a Google account (this is free). Go to Google Accounts and click on “create an account now “. Once you are logged in go to Google Finance click create portfolio and name the portfolio and then add desired stock.

Portfolio Calculations

In order to determine how much money we can allocate to each share we will have to do a few simple calculations. Firstly we work out each shares maximum share of equity, as we are giving equal weight to each different stock this is simply: Read the full story

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I am sure you have heard about the stock markets of the world losing large portions of their value. The mainstream media is really having a field day with it. Some finance blogs are noticing considerably high search volumes as people look for answers. The Australian market has not been immune to this global phenomenon with the market having its longest losing streak in a quarter of a century. You can see the steady decline in in the benchmark All Ordinaries Index from about the 8th of January, this is shown below with 13 straight days of losses.

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Everyone deals with money on a daily basis. People often complain “I don’t have enough money”, “I don’t have any money” and more rarely “I have to much money”. Money is such a big deal, as without it we couldn’t survive. Money is often linked to the state of a person’s happiness, however I don’t subscribe to this school of thought.

Money generally has four important characteristics:

1. It acts as a medium of exchange.
2. It is a unit of account.
3. It is a store of value.
4. It offers a standard of deferred payment.

Put most simply money is anything that can be exchanged for goods and services. This is referred to as a medium of exchange. In times of high inflation in Russia cigarettes and Vodka were used as a medium of exchange. Read the full story

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