Tag: long term

Valuation Analysis definition explanation

What is Valuation Analysis?
A form of fundamental analysis that looks to compare the valuation of one security to another, to a group of securities or within its own historical context. Valuation analysis is done to evaluate the potential merits of an investment or to objectively assess the value of a business or asset.

Valuation analysis is one of the core duties of a fundamental investor, as valuations (along with cash flows) are typically the most important drivers of asset prices over the long term. Read more for examples and further explanation including related video clips and also comments
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Negative Butterfly definition explanation

What is Negative Butterfly?
A non-parallel yield curve shift in which long- and short-term yields decrease by a greater degree than intermediate rates. This yield curve shift effectively humps the curve, adding to the curvature of the yield curve. Read more for examples and further explanation including related video clips and also comments
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Term definition explanation

What is Term?
1. The lifespan assigned to an asset or a liability, over which the value of the asset/liability is expected to either grow or shrink, depending on its nature.

2. The period of time assigned as the lifespan of any investment. In the case of debt, the time it takes for all payments to be made by the borrower and received by the lender. In the case of an equity investment, the time that elapses between the acquisition of the equity and its sale or removal from holdings for another reason. Read more for examples and further explanation including related video clips and also comments
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Fixed-Income Style Box definition explanation

What is Fixed-Income Style Box?
Created by Morningstar, a fixed-income style box is designed to visually represent the investment characteristics of bonds and bond mutual funds. This is a valuable tool for investors to use to determine the risk-return structures of their bonds/ bond portfolios and/or how these investments fit into their investing criteria.

Also referred to as a “”bond style box””. Read more for examples and further explanation including related video clips and also comments
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Substantial Gainful Activity – SGA definition explanation

What is Substantial Gainful Activity – SGA?
The threshold prescribed by the Social Security Administration (SSA) for determining eligibility for Social Security benefits. Substantial gainful activity (SGA) is a specified dollar amount. It is updated each year to reflect inflation, and it represents the minimum level of employability which will render a person productive and, therefore, ineligible for Social Security benefits. The SSA employs higher threshold levels of SGA for persons with specific disabilities, such as blindness. Read more for examples and further explanation including related video clips and also comments
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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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