In basic terms financial forecasting is something corporations do to determine how to allocate resources for the future – typically a year in advance. From the investor’s point of view, forecasting can be a useful tool to determine if certain events such as sales expectations will increase or decrease the value of the shares they hold in each company.
When someone like legendary investor, Warren Buffett, entreaties you to “buy what you know” you are likely to take that advice. After all, the Oracle of Omaha has done well. Very well. The idea behind buying what you know is that investors who invest in companies they understand, they are less likely to make a bad investment and lose money. That said, there are limitations to “buy what you know” and it’s worth considering them before making a simple phrase your one and only investing philosophy.
Blockchain, the technology behind bitcoin and other cryptocurrencies, is widely seen as an emerging space in 2018 and beyond. Cryptocurrency, on the other hand, despite its astonishing growth is viewed by many as unstable and the potential leading edge of an economic bubble that could burst at any time.
A bond is a fixed income type of investment. Essentially you, as an investor, are loaning money to an entity (corporate or government) for a defined period at a variable or fixed interest rate. Many government and corporate bonds are traded on exchanges. Others are traded only over-the-counter (OTC). Money raised from the sale of bonds is used to finance new projects, maintain ongoing operations or refinance debt.
Identifying and tracking takeover targets is an important part of investing due diligence. After all, if a company in which you are investing – or planning to invest in is a target or a potential acquirer, you’d want to know that, right?