Lesson 8 – What Determines The Rate Of Return On A Stock?

“In the Short-Run, the Market Is a Voting Machine, But in the Long-Run, the Market Is a Weighing Machine”   This is a phrase originally attributed to Ben Graham but made famous by Warren Buffet. It has a deep and profound meaning for those who actually understand it.   So what does it mean?   It simply means that in the short term, the stock market …

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Lesson 7 – A Stock Price Is Nothing But A Number

A stock price is nothing but a number. It tells you nothing on its own. So why then does the media concentrate on stock prices so much? It is because they want to sell you something and keep your eyes glued to the screen. But a stock price is nothing but a number.   This …

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Lesson 4: How To Open A Stocks And Shares Account

Many people want to start saving for their future by investing in stocks and shares but do not know where to start. I remember when I first wanted to buy a stock in a company, I was completely lost as to where to begin. There are so many posts out there on the internet but …

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Lesson 3: What is the Stock Market and How Does It Work

In the last lesson, we learnt what a stock is – it is simply a an ownership claim to proportion of a business. In this lesson, I will attempt to explain what the stock market is and how it works.   Contrary to popular belief, it is not a casino as what most people like …

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Lesson 2: What Is A Share

To many people, stocks are merely ticker symbols that go up seemingly at random. But for those of us that know how the stock market actually works, stocks do not move at random, but instead follow the trajectory of a real life business. To understand this, one needs to understand what a share is. A …

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Lesson 1: Why Invest In Shares

Talk to a friend, family member or work colleague about investing in the stock market and they would think you are crazy. The majority of people still have the belief that the stock market is extremely risky. They have this view that stocks are ticker symbols which go up and down on a whim. There …

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