2009 was a very unique year in finance. The events of the year demonstrate how the financial markets have a significant impact on all members of society. Below are the top 10 Sharpe Investing posts, in order of page views.
1. Difference Between Basic Shares Outstanding and Fully Diluted Shares Outstanding
Fully diluted shares outstanding provides a better representation of how the market is implicitly valuing the company.
2. Comparable Company Analysis Overview
Comparable company analysis is especially useful when valuing the minority, non-controlling interest of a company.
3. George Soros Theory of Reflexivity MIT Speech
The …

Mark Weinstein is a highly successful trader profiled in Market Wizards. After early trading failure, Weinstein diligently studied the markets. Learning from his mistakes, Weinstein eventually became a winning trader in a variety of financial instruments ranging from stock options to soy bean contracts. This article outlines the trading principals Weinstein shares in Market Wizards.
Accepting Responsibility for Losses
One of the turning points in Weinstein’s trading career followed a large soy bean trade loss. After emotionally and financially recovering from the loss, Weinstein realized that his trading results were dictated by his …

A traditional investment bank is composed of multiple divisions, including sales and trading and investment banking. The investment banking division is an intermediary between companies that need capital and clients wanting to invest capital.

Bankers advise clients that need capital or are planning a strategic action, such as a merger or acquisition. Bankers also help execute these strategic actions. Normally, the investment banking division is divided between industry, product, and capital markets groups.

Investment banks are frequently discussed and anlyzed in the financial press, especially during the current credit and financial crunch. This article reviews the structure and normal functions of typical investment banks.

Investment banks primarily have two functions. The first function is to raise and invest capital. The second is to advise clients on strategic actions, such as mergers and acquisitions. Investment banks primarily serve as intermediaries between companies that need capital and companies wanting to investment capital.

In addition, investment banks have been increasingly employing their own balance sheets to generate profits without directly serving clients through groups such as proprietary trading and internal alternative investment funds.

David Ryan is an extremely successful investor profiled in Market Wizards. He worked closely with famed investor William O’Neil, and eventually became a professional money manager. In addition, Ryan won the stock division of the U.S. Investment Championships in 1995 and 1995, posting 161% and 160% returns respectively. Ryan has a detailed stock selection process that he outlines in Market Wizards.
Stock Selection Process
1. Ryan only buys stocks within a few percent of their base to control downside risk.
2. Another early step Ryan initially takes is to \examine charts and identify stocks of interest …

William O’Neil is another star investor profiled in the book Market Wizards. Mixing a unique quantitative and qualitative growth investment strategy, O’Neil achieved dramatic investing success. In 1963 at age 30, he capitalized on this success by launching the brokerage firm William O’Neil & Co, and became the youngest member of the New York Stock Exchange at the time.

In 1983, O’Neil launched Investor’s Business Daily, a popular investment publication that incorporates his investment philosophy. In Market Wizards, O’Neil shares some of the keys to his investing success.