http://www.sharpeinvesting.com The Advanced Finance and Investing Resource Tue, 02 Feb 2010 17:10:13 +0000 http://backend.userland.com/rss092 en This article focuses on the important investment lessons from Paulson & Co. 3Q investor letter. Paulson & Co. is a New York based hedge fund managed by John Paulson. With over $29 billion under management, Paulson & Co. is one of the largest global hedge funds. Paulson notably earned a record ... http://www.sharpeinvesting.com/2010/02/key-lessons-from-the-paulson-co-third-quarter-3q-investor-letter.html 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 ... http://www.sharpeinvesting.com/2010/01/sharpe-investing-top-content-2009.html 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 ... http://www.sharpeinvesting.com/2009/01/mark-weinstein-high-percentage-trader-market-wizards.html 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 ... http://www.sharpeinvesting.com/2008/12/overview-of-traditional-investment-banking-groups.html 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. Primary Functions Investment banks primarily have two functions. The first function is to raise and invest capital. The second is to advise ... http://www.sharpeinvesting.com/2008/12/investment-bank-overview.html 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 ... http://www.sharpeinvesting.com/2008/11/david-ryan-stock-investment-as-a-treasure-hunt-market-wizards.html 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 ... http://www.sharpeinvesting.com/2008/10/william-oneil-art-of-stock-selection-market-wizards.html Michael Steinhardt is a legendary investor. In 1967, Steinhardt founded the hedge fund Steinhardt, Fine, Berkowitz & Co. From 1967 to 1995, the hedge fund returned 24.5% annually after fees. After retirement in 1995, Steinhardt became chairman of Wisdom Tree investments, a company providing a variety of exchange traded funds. ... http://www.sharpeinvesting.com/2008/09/michael-steinhardt-the-concept-of-variant-perception-%e2%80%93-market-wizards.html There are multiple methods investment bankers and other financial analysts use to value a company. One frequently employed relative value method is comparable company analysis. Comparable company analysis is especially useful when valuing the minority, non-controlling interest of a company. Theoretical Basis Comparable company analysis is rooted in the idea that companies with similar ... http://www.sharpeinvesting.com/2008/09/comparable-company-analysis-overview.html Financial statements report the basic shares outstanding. However, when attempting to value a company's market value of equity, fully diluted shares outstanding is used instead of the basic shares outstanding number. Fully diluted shares outstanding provides a better representation of how the market is implicitly valuing the company. Basic Shares Outstanding Basic ... http://www.sharpeinvesting.com/2008/09/difference-between-basic-shares-outstanding-and-fully-diluted-shares-outstanding.html