Part II - Compound Interest and Wealth

Part II – Compound Interest and Wealth

By The Banker | Blog Posts, Personal Finance, Wall Street

Compound Interest Math Formula – The Most Powerful Math in the Universe Please see my earlier post, Part I – Why don’t they teach this math in school? For the sake of blowing the lid off this vast cone of silence, here’s the compound interest formula: Future Value = Present Value * (1+Yield)N This is [&hellip

Part I - The Most Powerful Math in the Universe Goes Untaught

Part I – The Most Powerful Math in the Universe Goes Untaught

By The Banker | Blog Posts, Personal Finance, Wall Street

On Teaching Compound Interest and Discounted Cash Flows   “The most powerful force in the universe is compound interest” – Albert Einstein[1]   “Tomorrow and tomorrow and tomorrow, Creeps in this petty pace from day to day To the last syllable of recorded time”   This Spring I began teaching Personal Finance to a group [&hellip

Rating Agency Pet Peeve

Rating Agency Pet Peeve

By The Banker | Blog Posts, Wall Street

While I’m on the topic of ratings agencies, I need to get this off my chest.  I hate it when I read from the Financial Infotainment Industrial Complex that “X markets moved today in response to a ratings downgrade of Y.” Here’s a hint for anyone who follows financial news but who has never worked [&hellip

Busting the Rating Agency

Busting the Rating Agency

By The Banker | Blog Posts, Wall Street

Yo everybody 5-0! 5-0!  The cops are here! The US Justice Department filed a lawsuit yesterday against Standard & Poors, for its role in over-rating mortgage bonds, CDOs, and other securities in the years 2004 to 2007, securities which later proved to be weapons of mass financial destruction – the initial catalysts of the Great [&hellip

Who Killed Fund Performance?  We All Did!

Who Killed Fund Performance? We All Did!

By The Banker | Blog Posts, How Not To Invest, Investing, Wall Street

Essay Review of “Murder on the Orient Express – The Mystery of Underperformance” Once in a while I read something which crystalizes for me – with data and arguments better than I could hope to make – what I already suspected but hadn’t yet put into words. Charles D. Ellis writes in Financial Analysis Journal[1] [&hellip