ZZZZ Best Inc, 1986. owner Barry Minkow carpet clearing company. He created over 10,000 phony documents and sales receipts. Barry Minkow was only a teenager at the time when he was sentenced to 25 years in prison.
Dollar Cost Averaging(DCA) is the process of buying, regardless of share price, a fixed dollar amount of a particular investment on a regular schedule. More shares are purchased when the prices are low and fewer shares are purchased when prices are high.
Random Walk theory gained popularity in 1973 when Burton Malkiel wrote "A random walk down wall street", a book that now regarded as an investment classic. Random walk theory states that the past movement or direction of the price of a stock or overall market cannot be used to predict its future movement.
Optimal portforlia theory: investors will act rationally, always makeing decisions aimed at maximizing their return for their acceptable level of risk. Efficient frontier
Capital Asset pricing model(CAPM): Required Return = RF (Risk free) Return + (Market return - RF Rate) * Beta
Risk is the chance that an investment's actual return will be different than expected.
Diffenet types of Risk: Fundamental types; Systematic risk. Unsystematic risk. More specific types of risk: Credit or Default Risk, Country Risk, Foreign exchange Risk, Interest rate risk, Political Risk, Market risk,
EBITDA- earnings before interest, taxes, depreciation and amortization
Peter Lynch, started managing the Fidelity Magellan Fund.
Book: Seyhun book Investment Intelligence from Insider Trading