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I started anorexia when I was 14. My BMI dropped from 18.9 to 14.7 in a few months. I remember I was obsessing with getting rid of all pinchable body fat and trying to survive on minimal energy.

Following the weight loss, my hair fell, it began to hurt when I sat on any hard surface as there was no fat padding on my bum, and my menstruation disappeared too.

At 17, I started to concern about not having a period. I tried different things and my weighted went up and down a few times. …


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This post is a summary of What’s Going on With Bitcoin by Stefan Molyneux, a high-level analysis of the recent bitcoin boom. I found it very helpful.

All the credits go to Stefan.

Money Printing and Inflation

The governments around the world have been printing money in the past few years. In 2020 especially, the year of the pandemic, the government has been printing a huge amount of money in an attempt to support the economy. They use the money to rescue small businesses, help with the unemployed etc.

However, creating money out of thin air dilutes the value of money. For example, if…


You don’t need to be rich to be smart

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Maybe you have a job that pays regularly and you want to get started with investing. You usually have some spare cash each month and you know that letting it sitting in a bank account is not a good idea.

You are curious about investing in the stock market. You know its risky, and you know its even riskier when you don’t know much about it.

But you really don’t want to spend the time and energy digging into companies’ annual reports and keeping up with the global economy— what the “financially literate” people seem to be doing.

Fortunately you…


Principles of Index Funds

In Little Book of Common Sense Investing, the author John C. Bogle states that owning an index fund that is broadly diversified and charges minimal fees and holding it for the long term is the only way to guarantee your fair share of the stock market returns.

John C. Bogle is the founder of the Vanguard Group and the creator of the first index fund. The book is great if you want to know the reasons and evidence behind passive/index investing.

Main Ideas

  • Over the long term, stock market returns are created by real investment returns earned by real businesses — the…


Investing doesn’t always have to be risky

People often say that investing in the share market is a good way to grow wealth. And the easiest way to do that is to invest in an index fund. It is cheap, easy, and gives an average of 10% return annually.

Even Warren Buffett is an advocate of the index fund, who says that “for most people, the best thing to do is to own the S&P 500 index fund”.

Market Volatility and Annualised Return

10% annual return. Low risk. Little effort required. That sounds really good. However looking at the S&P 500 price chart in the past 20 years, I wonder how the…


Let’s talk about your bank accounts, superannuation and insurance.

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If you were like me, you were probably overwhelmed by all the money-related stuff that you have to deal with when you start your employment. E.g. bank accounts, superannuation and insurance etc.

If that’s you, The Barefoot Investor would be a good place to get informed. The author Scott Pape (I will call him Barefoot in this post) explains how the finance stuff works in simple terms and with a nice touch of humour. You can find guidelines in terms of what to look for when comparing financial products. …


I recently finished the book Warren Buffett’s Three Favorite Books and the course on Buffetts Book.com by Preston Pysh. I want to share some of the concepts and techniques that I found helpful. This post will introduce the 4 rules that Warren Buffett used for investing.

Warren Buffett’s 4 Rules

  1. A stock must be managed by vigilant leaders.
  2. A stock must have long term prospects.
  3. A stock must be stable and understandable.
  4. A stock must be undervalued.

Remember, all 4 rules must be met before a stock can be bought.

Rule 1. A stock must be managed by vigilant leaders

The biggest threat to a company is not being able…


“Intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business during its remaining life.” — Warren Buffett

I recently finished the book Warren Buffett’s Three Favorite Books and the course on Buffett's Book.com by Preston Pysh. I want to share some of the concepts and techniques that I found helpful. This story will show you how to use book value and dividend per share to calculate the intrinsic value of a stock.

1. Understanding the Definition

Warren Buffett defined intrinsic value as “the discounted value of the cash that can be taken…


This is Part 2 of the summary of the concept and technique of the Discounted Cash Flow model from the book Warren Buffett’s Three Favorite Books and the course on Buffetts Book.com by Preston Pysh.

Recap

  • In Part 1 we learned about Owner’s Earnings — a concept introduced by Warren Buffet to refer to the part of earnings that actually benefit shareholders.
  • We also learned that Free Cash Flow is a good approximation of Owner’s Earnings. It can be found on the Cash Flow Statement of a company.

Overview

By the end of Part 1, I briefly talked about the Discounted Cash…


Photo by Micheile Henderson on Unsplash

This is Part 1 of the summary of the concept and technique of the Discounted Cash Flow model from the book Warren Buffett’s Three Favorite Books and the course on Buffetts Book.com by Preston Pysh.

Summary

  • Warren Buffet introduced Owner’s Earnings to refer to the part of reported earnings that actually benefit shareholders.
  • Free Cash Flow is a good approximation of the Owner’s Earnings. It can be found on the Cash Flow Statement of a company.

Owner’s Earnings

Free cash flow is important because it’s relevant to the concept of Owner’s Earnings introduced by Warren Buffet.

At a time when Wall Street was…

Wendie Sun

I write about investing and other stuff. @fightthesorrow

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