Watching

Watching

In 1928, the first TV channel began broadcasting. It was a solution to having to pay money to view screen entertainment (i.e. movie theatres). “We made entertainment free,” they said. “Put a TV in your living room.” In the 1970s, premium cable television became more popular all through the US, with a boost when satellite [...]

What is the best investment? Part Seven: Bonds

What is the best investment? Part Seven: Bonds

This is the last installment in the series. There are two risks associated with bonds: default and price volatility. There are two metrics for evaluating bonds: quality and maturity. The price of a bond (what we could sell it for) is partially determined by how its interest rate, or yield, compares to newly available bonds. [...]

Pricing

Pricing

Taking a break from our series on the best investment, here is a primer on how stock market pricing works. You have a box spring you want to sell, so you advertise for $150 dollars. Your neighbor offers you $90. You accept because you just want it gone. (This is not biographical in any way.) [...]

What is the best investment? Part Five: Size

What is the best investment? Part Five: Size

The Size premium: small companies are better than large companies. All else being equal, smaller things move faster, farther, and more efficiently. Even when falling. Given two burdens, one larger and heavier than the other, which would you choose to carry? Remarkably, investing is similar. There is a mentality in investing that says you should [...]

What is the best investment? Part Four: Market

What is the best investment? Part Four: Market

The Market premium: stocks are better than bonds. So far in our series, we know that taking more prudent risk will yield higher long-term returns than taking less prudent risk. Applying that to the Market premium, when you invest in bonds, you are lending, which is less risky than owning. When a company is founded, [...]