Why Does the Total Stock Market Typically Beat the S&P 500?

The S&P 500 is a stock market index which tracks the overall performance of the 500 largest American companies (based on market capitalization). This is a great metric which can be used to understand the swings of the overall market and is also the model for some of the most popular index funds. An index fund is a fund with a portfolio which mimics that of a specific market index (for a more in-depth explanation see here). In the case of the S&P 500, the fund would be comprised of the companies represented in this index. So, instead of investing Continue reading Why Does the Total Stock Market Typically Beat the S&P 500?

The Economic Moat, a New Application for an Old Concept

Maybe you’re a Game of Thrones enthusiast, maybe you’re not. Either way, you are most likely aware of what a moat is. You know, the classic pit filled with water which surrounds nearly every storybook castle… The concept of a moat is incredibly simple. If invaders are forced to deal with a challenging obstacle before they can attack the castle, the likelihood of a successful invasion is decreased. The concept is thousands of years old, but it has recently been given a new application in the world of security analysis and finance. The term economic moat was coined by none Continue reading The Economic Moat, a New Application for an Old Concept

The Upward Trend of Esports

More news in the world of Esports has emerged since my last post about professional gaming. The NBA franchise, the Miami Heat purchased a significant stake in the Esports organization, the Misfits on January 10th. The Heat also announced a partnership along with this deal, in which the basketball franchise will “cross-promote” both organizations. The team tweeted a picture of both the Miami Heat’s logo and the Misfits’ new logo side by side. The Esports team changed their logo to match the color of the Heat’s logo, further promoting the partnership. The basketball team’s CEO, Nick Arison made an official Continue reading The Upward Trend of Esports

Player Stock from Fantex

A couple years ago, a company called Fantex announced that it would be having an IPO (initial public offering) of stock on Houston Texan’s running back Arian Foster. The goal was to offer about a million shares of stock in the earnings of Foster, the 28 year old star running back. Foster would receive $10 million up front, and the value of these shares purchased is linked to essentially 20% of the earnings associated with his professional brand (including endorsements and other business ventures). This would count any earnings from contracts for playing in the NFL, or any jobs later Continue reading Player Stock from Fantex