Tag: long term

Berkshire Hathaway definition explanation

What is Berkshire Hathaway?
A holding company for a multitude of businesses run by Chairman and CEO Warren Buffett. Berkshire Hathaway is headquartered in Omaha, Nebraska and began as just a group of textile milling plants, but when Buffett became the controlling shareholder in the mid 1960s he began a progressive strategy of diverting cash flows from the core business into other investments.

Insurance subsidiaries tend to represent the largest pieces of Berkshire Hathaway, but the company manages hundreds of diverse businesses all over the world. Read more for examples and further explanation including related video clips and also comments
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Atlas Options definition explanation

What is Atlas Options?
A type of equity-based exotic option from the family of mountain range options. Atlas options have a payout that is based on the performance of the underlying securities, which comprise stocks. At maturity, some of the best- and worst-performing stocks are removed from this group of underlying securities, at which point the payout is calculated on the remainder of the securities. Read more for examples and further explanation including related video clips and also comments
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Deep-Discount Bond definition explanation

What is Deep-Discount Bond?
1. A bond that sells at a significant discount from par value.

2. A bond that is selling at a discount from par value and has a coupon rate significantly less than the prevailing rates of fixed-income securities with a similar risk profile. Read more for examples and further explanation including related video clips and also comments
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Pension Fund definition explanation

What is Pension Fund?
A fund established by an employer to facilitate and organize the investment of employees’ retirement funds contributed by the employer and employees. The pension fund is a common asset pool meant to generate stable growth over the long term, and provide pensions for employees when they reach the end of their working years and commence retirement. Read more for examples and further explanation including related video clips and also comments
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Sticky-Down definition explanation

What is Sticky-Down?
A figure that can move higher relatively easily, but only will go down with pronounced effort. The existence of sticky-down prices has been proved by numerous modern-day economic studies, and usually it involves the economic input costs that go into producing a particular good or service.

Sticky-down is an extension of “”price stickiness””. Read more for examples and further explanation including related video clips and also comments
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Evergreen Loan definition explanation

What is Evergreen Loan?
A loan that does not require the principal amount to be paid off within a specified period of time. Evergreen loans are usually in the form of a short-term line of credit that is routinely renewed leaving the principal remaining outstanding for the long term.

Also called a “”standing”” or “”revolving loan””. Read more for examples and further explanation including related video clips and also comments
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Protectionism definition explanation

What is Protectionism?
Government actions and policies that restrict or restrain international trade, often done with the intent of protecting local businesses and jobs from foreign competition. Typical methods of protectionism are import tariffs, quotas, subsidies or tax cuts to local businesses and direct state intervention. Read more for examples and further explanation including related video clips and also comments
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