Selling stock you own with a company you love can be heartbreaking, tune in this week as we go over Danielle’s sale of her Whole Foods stock. Join us as we discuss the payout of dividends, arbitrage, and other investing must-know terms.
In Episode 116 You’ll Learn:
- How to preliminarily value Amazon and Whole Foods in the midst of the deal, and how to keep your emotions in check when you sell a company you love.
- How to look up your stock, dividends, and other details using Nasdaq.
- Why Amazon purchased Whole Foods for $42/share but the price is now nearly $43, who is driving the price?
- How Ed Thorp used his studies and formula to become full-time professor & hedge fund manager with an average 28% rate of return for 30 years.
- The Black-Scholes Formula and The Efficient Market Hypothesis
Must-Know Investing Terms:
- Margin of Safety: A principle of investing in which an investor only purchases securities when the market price is significantly below (roughly 50%) its intrinsic value.
- Trading: Making investments based on speculation, loosely related to gambling.
- Value Investing: Making investments similar in style to Warren Buffett, Charlie Munger, and the Rule #1 Way.
- Ex-Dividend Date: If you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment. Instead, the seller gets the dividend.
- Arbitrage – The simultaneous buying and selling in different markets or forms in order to take advantage of differing prices for the same asset.
- 21 Film
- Beat the Dealer Book – Ed Thorp
- Video – Warren Buffett – Long Term Capital Management
- The Pricing of Options and Corporate Liabilities (Black & Scholes Article)
- The Black-Scholes Formula Defined
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