Understanding Finance

Understanding Finance

When screening companies we often look for something called operating leverage.

Understanding Finance

Rising interest rates are causing problems for many companies, but a silver lining can be found in the dwindling defined benefit (DB) pension obligations on company balance sheets.

Understanding Finance

The slowing global macro backdrop is feeding through to the performance of a range of businesses.

Understanding Finance

The slowing global macro backdrop is feeding through to the performance of a range of businesses.

Understanding Finance

The legendary investor and ‘Sage of Omaha’, Warren Buffet, CEO/Chairman of Berkshire Hathaway wrote, in 1986, about the important concept of “owner earnings”.

Understanding Finance

A question I am frequently asked is how do we analyse stocks? How much emphasis do we place on valuation? And how much do we place on company analysis, in terms of assessing quality and growth…

Understanding Finance

A core method we, as equity analysts, use to calculate and estimate the present value of the companies we invest into on behalf of clients is the discounted cash flow model (DCF).

Understanding Finance

Return on capital metrics are closely watched by managers and investors alike.

Understanding Finance

A dual-listed company (DLC) is a company that is listed on multiple exchanges.

Understanding Finance

In theory, the definitions of an investment or an expense seem quite clear cut. An investment, so the theory goes, is spending which creates an asset which will help produce profits over a number of…

Understanding Finance

Conceptually we have a reasonable understanding of inflation. As an economic term, inflation represents the general price rise of goods and services over a predetermined time.

Understanding Finance

Usually, your bank would pay interest on your savings accounts. Negative interest rates turn this around and mean customers have to pay banks to hold their savings.

Understanding Finance

You probably sort of know how index linked gilts, or “linkers,” work. The redemption value is linked to the change in the retail price index, or RPI, that takes place over the life of the gilt. 

Understanding Finance

Another word for duration could be the average life of a bond. Most bonds pay annual or semi-annual coupons and have a redemption date. So whilst a bond maturing in three years and with a £5 annual…