Cory Harelson’s Post

"An asset is worth the sum of the cash flow returned to its owner from now until Judgement Day, discounted by an appropriate rate. Don’t let ephemeral low rates drop your internal hurdle rate." Jake Taylor I often get asked what discount rate is appropriate for doing a Discounted Cash Flow analysis. Most investment textbooks use something called the Weighted Average Cost of Capital, which is the cost of capital TO THE COMPANY. And I get it that the returns the company generates better be above its WACC. However, as an investor, what is YOUR WACC? I would posit that it should be your opportunity cost. What is the next highest and best use of your capital? That would be your opportunity cost. And that would be a great place to start as a discount rate. If you still have no clue what to use, I like to start with 10% as a rule of thumb and play around up and down with it. Afterall, many people would be quite happy with upwards of 10% as a long term return hurdle. Blessings #The5000 #Money #Invest #BiblicalFinance #10X10Y #100X20Y

Stay away from letting your trading portfolio lose money in order to make more! 😬 ✨While investing, keep earnings as your primary goal. Even though the profits could be small, losing money seems like a step backward in your trading career. Small or huge, the profit will help you develop a strong portfolio and boost your confidence. Make money, not lose money. Follow us for more such content #money #profit #trading #investment #moneymanagement #selfconfidence #quotestagram #ProfitHills #stockmarket

How Someone Made $110K Before Breakfast! 🥞💰 Ever heard the wild tale from 7 years ago? Here’s the scoop: 📉 A trader sold 1,000 put spreads for just 2 cents each. 😴 Woke up to find a $140K increase in their balance! How? Turns out, overnight, the market dipped just enough, assigning them 86,300 shares of $SPY—worth a jaw-dropping $23M. The Catch? They had only $50K in their account! 😳 Here’s the Play-by-Play: ➤ Panic set in. ➤ Market opened. ➤ Half the shares sold immediately at $268. ➤ The rest at $267.60. In the end, they walked away with $112K profit! Now, let’s break down that $23M borrowed overnight 🧐 Typical overnight margin interest rates range from 7% to 9% annually. Using an 8% rate for simplicity: 💰 $23M borrowed ⏰ For one night 📊 At 8% Daily interest rate: 8% / 365 ≈ 0.022% Interest on $23M for one night: $23,000,000 * 0.00022 ≈ $5,060 So, our trader likely paid around $5,000 in overnight fees. A hit, but still leaves a hefty profit! 💸 Takeaways: ➊ Understand the Risks: Know the potential pitfalls, especially with options. ➋ Be Cautious with Margin: It can amplify both gains and losses. ➌ Luck Isn’t a Strategy: Always have a solid plan. This wild ride ended well, but relying on luck isn't a sustainable approach! Got a similar story? Share below! 👇 #Trading #Investing #StockMarket #Finance #RiskManagement #OptionsTrading #WealthBuilding #FinancialLiteracy #TraderLife #SuccessStory

The day I lost £35k and how I would avoid it in the future. I'm a financial professional, I still make mistakes. It's 2018, I was working as a stock broker. I was supposed to know how to make money. My mistake. I used my ISA to buy £10k worth of a small cap oil explorer. The news comes out, they've found oil. The share price rockets. I buy more (first big mistake). My investment is now worth over £50k. Everyone tells me to sell, but greed took over. I held, because I thought I knew better (second big mistake). More news. The oil they found can't be extracted. The value is now £25K. I still held (third big mistake). Over the following 4 years I watched on. I sold at £15k - breakeven. A loss of over £35k from the high. What did I learn? • Chasing returns makes you greedy. • Permeant losses hurt • Controlling your ego is tough.  • Eliminate bias from the strategy.  • Few have superior knowledge to outperform.  I don't mange money, I help people avoid mistakes and ensure they thrive in life. Life By Design.   Guiding successful families to financial freedom.   To get started.   DM me today.   #personalfinance #money #lifebydesign #investments #tax

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Types of passive incomes that you can look out for as an investor: 1. Dividends from stocks 2. Coupon payments from bonds 3. Rental income from real estate 4. Interest income from Money Market Funds 5. Rebates from SACCO deposits 6. Dividends from SACCO share capital Which one are you looking to add your portfolio?

This will astound you a little. If you set your life up to have a cash buffer and a lot of cashflow hitting your account weekly and monthly. You can make a very standard return of 7-9% a year to 3-5% higher........Very simply...... You want to know how? Peter thornhill - The author of motivated moneys most recent video says his return is close to 13% annually for 30+ years time invested. (The calc below ive removed 3% a year for taxes circa). Go into a compound calc and put it 10% compounded on 1 mill balance for 50 years. For reference a balance con 7% return annually doubles every 10 years give or take. So people sit there and look at a boring listed investment company and 7-9% return. Its like watching paint dry. The stock price hardly moves. Thats not exciting. Did he get this by investing in riskier assets? No Did he get there by 1 company compounding 100 times? No He invested when market crashes occured. Buying up all the cheap assets. At much higher compounded yields. While still investing all the time. Property got me to my first 2-4 million. Through the power of leverage in 3-4 short years. Ill still go heavily into property buying up as much as i can. Im about to go on another tear buying a lot more property. But you bet ya ill be taking a very simple approach to investing in shares as well. To diversify and compound. #playerlife #shares #compound #property

Money is the manifestation of energy exchanged. Whether you earn it through a product or service or spend it, the energy behind it is finite and irreplaceable. Choose wisely how you circulate your energy. #finance #financialfreedom #investing #money #stocks #wealth #trading #HTOF . . . If you have a product or service that you are selling for more than $10,000 and you need high -powered financing options for your customers to purchase your products or services or if you have a 680+ credit score and want to be approved for up to $600,000 in personal funding or up to $3,000,000 in business funding click the link in our bio. Pre approvals are within 24 hours and there are no hard inquiries to see if you are approved.

🎬🎬🎬 A 10% loss requires a *11% gain to get back to even* A 20% loss requires a *25% gain to get back to even* A 50% loss requires a *100% gain to get back to even* A 90% loss requires a *900% gain to get back to even* *Huge gains aren't easy* & *Big losses destroy capital:* *Avoid big losses!*

Not quite yet… Not yet within reach… Well on our way in the right direction... After my first financial transaction more than 40 years ago, I can say that what is in the photo is still a bit far-reaching. (+/- 1.5 Billion) What I can also say is that the eagerness to learn, the studies, the passion, the focus, masses of experience and this combined with the common sense of these 40 years have untangled the knot of highly profitable investing in the stock market. Indeed, The knot is untangled with the result, not hoping, expecting, assuming or wishing, but KNOWING, what to buy, how much to buy, when to buy and especially when to sell!! With the sole purpose of PROTECTING AND INCREASING YOUR PURCHASING POWER!! I would like to share this wisdom with anyone who can free themselves for a 6-part training called “The Board of Investing” at Missing-Link.Be starting January 2025. (The next edition is already fully booked) Register, ask questions or request the white paper via www.missing-link.be Greetings, Benny #return #purchasing power #capital #success #money #profit #investing #stock market #shares #finance #missinglink