Investors typically have an inclination to buy either stocks or bonds, but rarely make a choice between the two. After finding a company that looks like a good investment candidate and getting to know the business and the financials, investors should make a choice about which type of investment to make. Stocks are investments in which the investor takes an ownership interest in the corporation. Bonds allow investors to lend money to the corporation and receive interest. Let’s take a look at how these very different investments are affected by corporate events. [...]
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The steps to calculate stock intrinsic value, also known as fair value, is by summing up 10 years of future net operating incomes that is discounted to present value. I use 10 years assuming that no company will last forever and remember that present value of money is always more valuable than value of money in future of exact amount. In order to calculate present value of money in N year in the future, we simply [...] Even EPF loses money in stock market, that’s still not a very serious problem in short term, after all 26% out of 370 Billions is only RM96.2 Billions, besides, EPF has waves of recurring income in hundreds of millions ringgit every month. In the event of EPF making losses, the likely potential problem for EPF to tackle is paying out to the retirees who demands for withdrawal. They can easily solve this by paying these retirees with the recurring incomes, given the total amount of withdrawal does not exceed the total contribution overall for a period of [...] |
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