Part 4: Investing in Individual Stocks Many beginner investors eventually face an important question: should they invest directly in individual stocks, or simply buy into an investment fund? The goal of investing in common stocks (or any other asset) is to earn the greatest return for the least amount of risk. But whether an investor […]
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A credit entry is an accounting entry that increases the balance of certain accounts and decreases the balance of others. Credit Entries in Double-Entry Bookkeeping In a double-entry bookkeeping system, all transactions are recorded into an accounting journal. All transactions are posted to individual accounts. The accounting entries are made in accordance with the double-entry
The adjusted trial balance is a key step in the accounting cycle. It is a report run at the end of an accounting period after adjusting entries have been made in the company’s books. Where the Adjusted Trial Balance Fits in the Accounting Cycle In the process of preparing period-end financial statements, a company follows
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This post is Part 3 of a Beginner’s Guide to Stock Investing series. Part 3: How to Buy and Sell Stocks How do investors actually buy and sell stocks? The answer depends on the market in which the stock is sold. In Part Two of this guide, we learned how the stock market consists broadly
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This post is Part 2 of a Beginner’s Guide to Stock Investing series. Part Two: What Is the Stock Market? In December of 1980, a computer company founded out of a garage in Los Angeles, California, began trading on a stock exchange known as the National Association of Securities Dealers Automated Quotations (NASDAQ). At the
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This post is part of an ongoing series reflecting on Warren Buffett’s career and investment philosophy. Buffett on Scale and Structural Advantage In 1999, at the height of the dotcom bubble, Warren Buffett gave an interview for BusinessWeek. Buffett was discussing how the combination of an over-heated stock market and Berkshire Hathaway’s large size made
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This post is Part One of a Beginner’s Guide to Stock Investing series. Part 1: What is a Stock? Most people have some familiarity with the stock market. But what is exactly is a stock? Why do people buy stocks? There are plenty of people who trade stocks. That is, they attempt to forecast the
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Why Investors Should Care In a fiat monetary system, central bank credibility is the anchor for inflation expectations. When that credibility is weakened by political pressure, the effects are not always immediate, but they are significant for investors over time. Investors should care about Federal Reserve independence because: Key Takeaways for Investors For a deeper
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Early Life and Family Influences In the first post in this series, I wrote a bit about how I encountered Warren Buffett’s investment philosophy as an undergraduate student (read it here). In this post, I discuss Warren Buffett’s early years and some of the influences that shaped his early career. Warren Buffett was born on
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Part One: Early Influences, Long-Term Discipline, and Learning to Think About Business Why Reflect on Warren Buffett Now On January 1st of this year (2026), Warren Buffett officially stepped down as the CEO of Berkshire Hathaway, Inc., the sprawling conglomerate and investment holding company that Buffett, alongside his late partner Charlie Munger, built up over
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