ARK Invest is an investment management firm that was founded in 2014 by Cathie Wood. ARK Invest focuses on investing in disruptive innovation, which the firm defines as “the profound economic and social changes brought about by new technologies.” In July 2023, ARK Invest is acquiring stocks based on a series of criteria outlined on…
The time value of money (TVM) is a fundamental principle in finance that reflects the concept that money available today is worth more than the same amount in the future. This concept is primarily driven by two main reasons: inflation and potential earning capacity. Inflation is the rate at which the general level of prices…
Compound interest, often described as “interest on interest,” plays a pivotal role in investment growth. At its core, compound interest involves reinvesting an asset’s earnings to generate further gains over time. This compounding effect results in exponential growth, as returns are generated on both the initial investment and the reinvested earnings. Investment strategies often capitalize…
Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Essentially, you’re earning interest on interest. Because of this, the amount of money can grow exponentially over time, making it a powerful tool in wealth-building and retirement planning. Compound interest is…
Philip Fisher, one of the most influential investors of all time, wrote his investment classic, “Common Stocks and Uncommon Profits,” in 1958. The book encapsulates his investment philosophies and strategies, which have served as guiding principles for generations of growth investors. Fisher was a proponent of the ‘buy and hold’ investment strategy, a strategy that…
Investing in gold and stocks represents two distinct paths towards wealth accumulation, each offering unique benefits and risks. An effective investment strategy goes beyond simply choosing one over the other; it entails utilizing both in a balanced, well-diversified portfolio. This approach helps to capitalize on their unique strengths while mitigating the inherent risks. Stocks typically…
NVIDIA Corporation is an American multinational technology company, founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem. It is headquartered in Santa Clara, California, and is a global leader in the design and production of graphics processing units (GPUs), as well as System-on-a-Chip (SoC) units for various markets such as gaming, professional visualization,…
Diversifying investment is a crucial strategy for investors who want to optimize their returns while minimizing risks. The core principle behind diversification is spreading investments across various asset classes, industries, and geographic locations, rather than concentrating on a single investment or sector. This approach helps reduce the impact of market fluctuations and unexpected downturns on…
Investor psychology plays a crucial role in shaping market dynamics and investment outcomes. Understanding the impact of investor behavior and sentiment on the success of fundamental and technical analysis strategies can provide valuable insights for investors seeking to navigate the complex world of financial markets. This article examines the influence of investor psychology on these…
In the world of investing, two primary strategies often emerge as guiding philosophies for investors: growth investing and value investing. These approaches, while sharing some similarities, diverge in their focus, risk profiles, and investment decision-making processes. This article will delve into the core differences between growth and value investing, providing insights into how these distinct…