Comments on: All About Stocks and Bonds (repost) http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost/ Personal finance blog for college students, recent graduates and everyone else -- including entrepreneurship -- for getting rich. Featured in the Wall Street Journal and New York Times. Sun, 12 Feb 2012 18:46:58 +0000 hourly 1 http://wordpress.org/?v= By: Joe W. http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost/#comment-1943 Joe W. Tue, 25 Apr 2006 17:27:50 +0000 http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost#comment-1943 Thanks Kieno, that's what I was looking for. Any ideas why Amazon and Yahoo!'s P/B are so different? Amazon's seems astronomical (60.56) compared to Yahoo's (5.84). Thanks Kieno, that’s what I was looking for. Any ideas why Amazon and Yahoo!’s P/B are so different? Amazon’s seems astronomical (60.56) compared to Yahoo’s (5.84).

]]> By: Joseph Scott http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost/#comment-1942 Joseph Scott Wed, 19 Apr 2006 21:20:19 +0000 http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost#comment-1942 You don't indicate exactly what kind of bond was giving ~ 2.89% back in April of 2004 so it is difficult to compare. If you had purchased an I Bond in April of 2004 it would have started at 6.83%. Since then it would have changed to 6.73%, 6.93% and 6.73%. Well above the 2.89% rate you noted. You don’t indicate exactly what kind of bond was giving ~ 2.89% back in April of 2004 so it is difficult to compare. If you had purchased an I Bond in April of 2004 it would have started at 6.83%. Since then it would have changed to 6.73%, 6.93% and 6.73%. Well above the 2.89% rate you noted.

]]> By: Nabs http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost/#comment-1941 Nabs Wed, 19 Apr 2006 15:01:01 +0000 http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost#comment-1941 The only way you'd lose money on a goverment bond is if the government defaulted on its loans--and it doesn't do that, it just prints more money. I imagine you are talking about American bonds, but for the record Russia defaulted on its bonds in 1998. The only way you’d lose money on a goverment bond is if the government defaulted on its loans–and it doesn’t do that, it just prints more money.

I imagine you are talking about American bonds, but for the record Russia defaulted on its bonds in 1998.

]]> By: Trevor http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost/#comment-1940 Trevor Wed, 19 Apr 2006 13:33:15 +0000 http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost#comment-1940 I know this is probably a "newbie" question, but I read an article recently that talked about the "Magic Formula" at www.MagicFormulaInvesting.com and I'm curious as to your thoughts. from what I understand, it puts the P/E ratio on its head in a sense, going on return on capital... it seems like it uses the P/E ratio in regard to its market capitalization. I guess thats how its "magic" needless to say, I'm just curious what some of your thoughts would be on it. I know this is probably a “newbie” question, but I read an article recently that talked about the “Magic Formula” at
http://www.MagicFormulaInvesting.com
and I’m curious as to your thoughts. from what I understand, it puts the P/E ratio on its head in a sense, going on return on capital… it seems like it uses the P/E ratio in regard to its market capitalization. I guess thats how its “magic” needless to say, I’m just curious what some of your thoughts would be on it.

]]> By: Kieno http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost/#comment-1939 Kieno Tue, 18 Apr 2006 22:40:38 +0000 http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost#comment-1939 Well to be more specific P/E = Price divided by earnings. It is a measurement of stockholder enthusiasm. How much the market is willing pay for the earnings. It goes without saying that growth tech stocks like Google carry astronomical P/Es because they have lots of growth potential and the price is based on future earnings, not past or present earnings. Price to Book Value (P/B) is a ratio of the price of the stock to the bottom line: assets and free cash. Well to be more specific P/E = Price divided by earnings. It is a measurement of stockholder enthusiasm. How much the market is willing pay for the earnings. It goes without saying that growth tech stocks like Google carry astronomical P/Es because they have lots of growth potential and the price is based on future earnings, not past or present earnings.

Price to Book Value (P/B) is a ratio of the price of the stock to the bottom line: assets and free cash.

]]> By: Eric N. http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost/#comment-1938 Eric N. Tue, 18 Apr 2006 21:59:42 +0000 http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost#comment-1938 Joe W. ... PE = P/E = Price over Earnings. Joe W. … PE = P/E = Price over Earnings.

]]> By: Joe W. http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost/#comment-1937 Joe W. Tue, 18 Apr 2006 20:29:55 +0000 http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost#comment-1937 Is there a ratio that tells you a stock's price in relation to the company's assets and profits? Is there a ratio that tells you a stock’s price in relation to the company’s assets and profits?

]]> By: Aaron http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost/#comment-1936 Aaron Tue, 18 Apr 2006 20:04:06 +0000 http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost#comment-1936 >If it does well, your stock will >do well. Shouldn't it read something more like: "If it does well, your stock may or may not do well, depending on market conditions, the health of that firm's industry, and investor perception of how the company is performing" >If it does well, your stock will >do well.

Shouldn’t it read something more like:

“If it does well, your stock may or may not do well, depending on market conditions, the health of that firm’s industry, and investor perception of how the company is performing”

]]> By: Scott Young http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost/#comment-1935 Scott Young Tue, 18 Apr 2006 19:09:45 +0000 http://www.iwillteachyoutoberich.com/blog/all-about-stocks-and-bonds-repost#comment-1935 Great info! Great info!

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