I know, most of you would have expected me to dig into the financials of a company first. However, I have explicitly chosen to write the first article on fundamental stock analysis about the P/E ratio. The P/E ratio stands for Price-to-Earnings Ratio, and might is also referred to as PER.
The P/E ratio measures the price paid per share relative to the earnings on that share, or the Earnings Per Share. The P/E ratio is expressed in years. As such, having a P/E ratio of 8 means that if I …

I consider long-term investing in stocks/shares as a crucial element of building wealth; in fact, you will most probably find this confirmed by most personal finance blogs on the internet. This also brings a number of interesting questions, such as how we can pick the best investment opportunities, and on what do we base our investment decisions. In the next few weeks, I intend writing a number of articles, focussed on how to analyze company stocks and investment pportunities.
Currently, there are two main methodologies for analyzing and possibly predicting the …

Every now and then I have been thinking what I would do if I would win a few million in a lottery, or in the casino. I am sure most people have, perhaps you have. I have been discussing all possible scenarios with my friends, and often we ended up talking about expensive sports cars, yachts, luxurious estates and world travel. Honestly, if this is really how I would spend my millions, I would probably be instantly in debt.
I watched a documentary the other week, in which they were looking …

I know, it’s a bit awkward that I am writing a post on option trading, while on the other side my website is aobut long-term financial development. Nevertheless, I remember being very active in options trading as a student, just like most of my fellow-students, and actually it did earn me some money. In addition, options can be a great strategy to use as an insurance, in combination with shares. In this post, I am mainly referring to European options. Also, please keep in mind that not in every country …

I have a few questions for you: Do you know your monthly net wage? Do you know how much money you spent on groceries last week? If you consolidate all of your accounts, including checking accounts, credit cards, and investments, how did your assets and liabilities develop per month during the past 6 months?