As defined by Stockopedia, value investing is extremely simple in theory, but tougher in practice.  If you compare the price of a stock with a confident valuation of its true worth (intrinsic value) and find you can buy it at a considerable discount (margin of safety) then you may be onto a winner. But value investing is much harder than it looks for two reasons, firstly the real intrinsic value of a company can be tricky to calculate but also the practice of buying beaten down stocks also runs contrary to almost all human instincts. Who wants to be the guy holding the bombed out engineering stocks when everyone else is buying Apple?  But it’s precisely these tendencies that lead to so many investors over-reacting, driving prices down so low that value stocks become so profitable in future. The main reason behind their trendiness today is thus an extension of what it is able to ...

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Cooperation is an interesting field that is extensive and diverse, contingent on a multitude of factors and very easily affected by the constructions of institutions. In my short review, we will attempt to explain why people vary in selfishness, as well as examine the motivations behind certain types of behavior, and if it changes in different levels of evolution in the human lifetime. Unfortunately, it is a tall ask to explain how exactly does virtue arise with the creation of social order, and how it subsequently shapes our cooperative levels, a topic we shall thus leave for another day. Why do people vary in selfishness? Firstly, altruistic behavior can be explained as one such motivation. Altruistic behavior can be defined as behavior that benefits another organism, not closely related, while being apparently detrimental to the organism performing the behavior, benefit and detriment being defined in terms of contribution to inclusive fitness. One ...

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America, a melting pot of cultures, hubbard of ideas, symbol of liberty, is still very much the place that most immigrants hope to go to in hope for a better life.Yet, as the demographics of the country shift again, America finds herself not only on the verge of an economic overhaul, but also very much a demographic overhaul. Paul Taylor’s newest book, The Next America, is a well informed book packed with years of data compiled by the partnering Pew Research Data. As already mentioned in the preface of the book, Taylor acknowledges that The Next America is a book that is backed up by a fact tank in the Pew Research Center, with the faith that the common foundation of facts can help societies identify problems and discover solutions. With Obama’s ‘surprise’ reelection victory, Taylor draws us to the ideological differences between the older generations and the millennials. As he aptly ...

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So, the season of the world cup has begun yet again. The 32-nation tournament will cost Brazil 25.8 billion reais (6.92 billion pounds) in investments in stadiums, airports, urban transport and other infrastructure improvements. One third has been spent on new or renovated stadiums in 12 host cities. Why the investment? So, the season of the world cup has begun yet again. The 32-nation tournament will cost Brazil 25.8 billion reais (6.92 billion pounds) in investments in stadiums, airports, urban transport and other infrastructure improvements. One third has been spent on new or renovated stadiums in 12 host cities. The ideas behind Brazil’s choices are tagged to long term economic gains. For instance, the FIFA said it was Brazil's choice to build 12 stadiums instead of opting for eight or 10, and investments include infrastructure not directly linked to the World Cup that will benefit the country for years to come. Whilst the immediate gains from the ...

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On Index Funds As part of our financial weekly column I shall be collating a series of articles and facts that I have gleamed through the internet about, and crystallize the content in posts like this. Today, our first post will be on Index Funds. What is an index fund? An "index fund", as described clearly on the US Security Exchange website , describes a type of mutual fund or unit investment trust (UIT) whose investment objective typically is to achieve approximately the same return as a particular market index, such as the S&P 500 Composite Stock Price Index, the Russell 2000 Index or the Wilshire 5000 Total Market Index. An index fund will attempt to achieve its investment objective primarily by investing in the securities (stocks or bonds) of companies that are included in a selected index. Some index funds may also use derivatives (such as options or futures) to help achieve ...

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