“Can I achieve the same rate of return as Buffett?” A student once asked me this question. Over the past 50 years, Buffett’s annualized rate of return has been nearly 20%. If someone had invested 10,000 USD in Buffett’s holding company, Berkshire Hathaway, back then, it would have grown to 180 million USD today… How […]
Category Archives: American Equities
What is Pre-market trading in U.S. stocks？The normal trading hours for the U.S. stock market are from 09:30 AM. to 4:00 PM. on trading days, without a break at noon, allowing investors to trade stocks during these regular hours. However, besides these hours, pre-market or after-market trading is also possible in the U.S. stock market. […]
What are the trading markets for U.S. stocks? U.S. stocks are traded on multiple exchanges, with the two most important being the New York Stock Exchange (NYSE) and the NASDAQ. In addition to these two major exchanges, there are other secondary exchanges and over-the-counter (OTC) systems where investors can trade U.S. stocks. Here are some […]
We can think of the circuit breaker mechanism as a “fuse”. When the market fluctuates too violently, the fuse will melt and break, suspending trading activities in the market temporarily. Trading will resume after a while. During the trading hours of the U.S. stock market, if market prices fluctuate violently to a certain preset limit […]
Currently, the United States represents the most significant stock market globally, with its overall market value accounting for more than 50% of the global stock market and hosting the world’s most important companies. In the past, the most significant stock market crashes have seen declines of up to around -50%, and this is just for […]
Stock buybacks are a very popular method among corporations. If executed properly, they can benefit shareholder equity, but if mismanaged, they can also lead to company difficulties. Warren Buffett, in his 2011 letter to shareholders, mentioned that Berkshire Hathaway would only repurchase shares under two conditions: 1. Charlie and I believe that the company’s stock […]
The Buffett Indicator is a renowned metric used to assess whether the current stock market is overheated or undervalued. It was highlighted by the legendary investor Warren Buffett in a 2001 interview with Forbes magazine. This indicator measures the ratio of the total market capitalization of the stock market to the Gross Domestic Product (GDP). […]
In U.S. stock trading rules, investors using cash trading accounts need to be aware of the Good Faith Violation and the 90-Day Trading Restriction rules. These rules are mainly in place to regulate the buying and selling of unsettled funds. U.S. stocks follow a T+2 settlement, meaning the transfer of stocks and cash appears instantaneous […]
The 13F report (13 Filings or SEC Form 13F) is mandated by the SEC for investment institutions managing over $100 million, including mutual funds, hedge funds, pension funds, trust institutions, insurance companies, etc., to disclose their stock positions every quarter. The 13F report (13 Filings or SEC Form 13F) is mandated by the SEC for […]
Short squeezes have caught the market by surprise many times. Learn more about what a short squeeze is, its causes, and how it affects traders. The short squeeze has demanded the audience from many of the best investors and traders the world over, with some boastful about correct market predictions while others are humbled by […]