Berkshire Hathaway | The Blueprint for Financial Invincibility

I. Introduction: The Gold Standard of Capital Allocation Berkshire Hathaway is not merely a company—it is a living textb...

The Difference Between Assets vs. Liabilities

I. Introduction: Defining the Units of Wealth In common parlance, an "asset" is anything you own that has value, and a "...

Compound Interest — The Math of Exponential Growth

I. Introduction: The Eighth Wonder of the World Albert Einstein famously called compound interest "the eighth wonder of...

Cash and Cash Equivalents (CCE)

In the analysis of a company's financial health, few items are as closely watched and universally understood as cash. Ho...

Dividends: Definition, Benefits & Examples

In the world of finance, there are few words that sound as good to an investor's ear as "dividend." But what does it act...

SOCIMI: What is this? Spain's REIT equivalent?

In the real estate world, owning property has traditionally been the hallmark of wealth. However, direct investment requ...

Intrinsic Value: Definition, Calculation & Examples

In the world of investing, there is a constant tug-of-war between price and value. As Warren Buffett famously put it: Pr...

Net Income: Definition, Calculation & Example

In the business world, no number is more scrutinized or celebrated than Net Income. Often referred to as "the bottom lin...

Payout Ratio

In the world of investing, an attractive dividend can easily catch any investor's eye. However, to know if that dividend...

Free Cash Flow

In the world of investing, there is a famous saying: "Profit is an opinion, but cash is a fact." While Net Income is the...

Risk Management — Sharpe Ratios & Asymmetric Bets

Before proceeding: As the Ultimate Financial Encyclopedia, we present comprehensive perspectives on all major investment...

Leverage 101 — Good Debt vs. Bad Debt

I. Introduction: The Power of the Lever In physics, a lever allows a person to move a weight much heavier than their own...

Quality and Wide Moat Investing

Fundamentals and Purpose Quality and Wide Moat Investing is the natural and sophisticated evolution of traditional Value...

Earnings Growth and Exit Multiple (Delta of the Delta)

Fundamentals and Purpose The Earnings Growth and Exit Multiple model is a projective valuation technique that seeks to a...

Economic Moat Evaluation (Wide Moat)

Fundamentals and Purpose The Economic Moat Evaluation (Economic Moat) is the most critical qualitative analysis in value...

Value Investing

Fundamentals and Purpose Value Investing is the most revered and, at the same time, the most misunderstood investment st...

Growth Investing

Fundamentals and Purpose Growth Investing is a strategy focused on capital appreciation through the identification of co...

Dividend Investing

Fundamentals and Purpose The Dividend Investing Strategy is a conservative, income-focused approach that prioritizes pur...

Dividend Yield Theory

Fundamentals and Purpose The Dividend Yield Theory (or Dividend Yield Theory) is an elegant and counter-cyclical valuati...

Dividend Discount Model (DDM)

Fundamentals and Purpose The Dividend Discount Model (DDM) is the grandfather of modern intrinsic valuation. Popularized...

Current P/E vs. Historical P/E

Fundamentals and Purpose The analysis of Current P/E vs. Historical P/E is a relative valuation technique based on one o...

Book Value Convergence (BV-Price Growth Parity)

Fundamentals and Purpose The Book Value Convergence Model (also known as BV-Price Growth Parity) is a temporal relative...

The Human Element | Transferring Values

Do not handicap your children by making their lives easy. You have generated the capital (Part 2) and built the legal fo...

The Philosophy of Enough | The Ultimate Luxury

"Success is getting what you want. Happiness is wanting what you get." — Dale Carnegie We have arrived at the end of the...

How to Build Generational Wealth: The Blueprint for a Legacy

There is a reason this proverb exists in almost every culture on Earth. In Scotland, they say, "The father buys, the son...

The Engine of Accumulation: Generating Critical Mass

You will never get rich renting out your time Most financial advice tells you to save money. That is advice for staying...

The Fortress | Architecture of Generational Wealth

Own nothing, but control everything. In Part 2, we discussed how to generate wealth (Offense). Now, we switch to Defense...

The History of Money & Fiat Currency

I. The Nature of Value: Why Does Money Exist? To understand the history of money, one must first dismantle a common myth...

Inflation — Understanding Purchasing Power Erosion

I. Introduction: The Silent Tax Inflation is often defined as "a general increase in prices," but for the generational w...

The Medici Family Banking System — The Blueprint for the Modern Financial Fortress

I. Introduction: From Merchants to Masters The House of Medici (Casa de' Medici) was more than a political dynasty; they...

2025 Berkshire Hathaway Annual Meeting

2024 Letter to Berkshire Hathaway Shareholders

2024 Berkshire Hathaway Annual Meeting

2023 Letter to Berkshire Hathaway Shareholders

2023 Berkshire Hathaway Annual Meeting

2022 Letter to Berkshire Hathaway Shareholders

2022 Berkshire Hathaway Annual Meeting

2021 Letter to Berkshire Hathaway Shareholders

2021 Berkshire Hathaway Annual Meeting

2020 Letter to Berkshire Hathaway Shareholders

2020 Berkshire Hathaway Annual Meeting

2019 Letter to Berkshire Hathaway Shareholders