Josh Maher's Blog » Entries tagged with "ESPP"
Investing Lessons from the World Financial Symposium
Tweet If you haven’t been following the series on investing lessons from venture capitalists, now is a good time to start. The latest in the series comes from some great insight that was provided at the World Financial Symposium here in Seattle. The question of course that everyone has next is what the hell is the world financial symposium and why is it in Seattle? Amazingly of course the angel investors on hand at the symposium generally had the same thought in response to the always outstanding question of why isn’t Seattle a bigger startup community? Regardless of the amount of angel and venture capitalist investment that happens in the region, there is an amazing amount of talent on the entrepreneur and investor sides of the table. Some of the lessons from … Read entire article »
Filed under: Economics, Entrepreneurship, Innovation, Investing, Seattle, Startups, stocks, Technology
ESPP Dividend Reinvestment
Tweet I have had a few readers ask about the difference between two key strategies inside of an ESPP – Selling Covered Calls and Dividend Reinvestment. I haven’t really covered Dividend Reinvestment yet so can’t do justice with a comparison of the two here on the blog. I’ll put this post together and later do some comparison of the two ESPP strategies. Both of these strategies are ideal for ESPP where the stock has a dividend, mostly due to the compounding relationship (as any dividend paying investment provides). The idea of Dividend Reinvestment is centered on holding a stock and growing a position in the stock over a long period of time. To support this goal, all dividends (distributions of corporate earnings) are used to purchase more shares of the company. This … Read entire article »
Investor Training
Tweet I have a few more in the Investing Lessons from Venture Capitalists in the works and will post them in the coming weeks. Of course anyone interested in investing in public or private markets and businesses should look at more than just VCs for lessons. A few must read guides for investors – I have these on my Kindle and re-read them occasionally as the messages here are amazing reminders of what I need to focus on when evaluating companies and properties to invest in. I know that some of you just pick a few ETFs, participate in your employer’s ESPP and call it good (Don’t get me wrong – I love that strategy so long as you are not only betting on the company you work for and have … Read entire article »
It Takes Two to Tango
Tweet I get a lot of feedback about my Covered Call ESPP strategy from efficient market theorists. They tell me that I will make and lose money on the trades based on the efficiency of the market. They commonly forget that markets are composed of people and when it comes to individual transactions there is a buyer and a seller. Howard Marks ranted about this in a recent letter (see below). The fact that transactions have buyers and sellers means that while the market may display efficiencies, each transaction Understanding who is on both sides of the transaction is important. If you are looking to make a new investment of any kind, an Angel investment, a Real Estate Investment, or purchasing shares of a business on a public market you need to … Read entire article »
Filed under: Entrepreneurship, Investing, RealEstate, stocks
QE Timeline and the Market
Tweet Bill McBride over at Calculated Risk has put together an interesting QE Timeline – in his post he outlines what occured at each of these stages and has included the graphic that I am linking to below. It is interesting to think about the implications that these market manipulation programs have on the overall market. If the programs truly are causal to the market direction, we should be looking at an upward market over the next time period despite the other signs in the economy. This would be despite Europe concerns, impact of healthcare, hiring, consumer/corporate spending, or any of the other indicators out there. Of course as I mentioned before most of these “market making news numbers” shouldn’t be used in retail investment decisions. Regardless it is important to understand the general … Read entire article »
Filed under: Banking, Covered Calls, ESPP, Investing, Profit, stocks
