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Are the best credit card deals gone for good?
Ever since the credit crunch began in 2008, banks have scaled back their credit card deals substantially. Previously, balance transfers for periods of 12 to 18 months were considered the norm, but today, they are for much shorter amounts of time. Despite the fact that the Federal Reserve is keeping interest rates at historically low [...]
The P/E ratio method for credit score estimation
The P/E ratio method is probably the most widely used valuation method for businesses of all sizes, both public and private. This method values a business as a whole by capitalising its future maintainable after-tax real profits to arrive at total value, rather than by valuing goodwill and net assets separately as is done through [...]
Credit problems – When fear tells the mind
Greed is not the opposite of fear. Greed, when analyzed, is best seen as a form of fear: fear plus ego. Greed results when fear tells the mind that there
Credit vs. Fear and Greed
All aspects of your emotional makeup come into play in investing. Most commentary on emotions and investing look at fear and greed as the main investment emotions. Fear is an
Emotionless investing and credit
Emotionless investing is the opposite of the inventory process. Emotionless investing is neither desirable nor possible. What is often described as emotionless investing is numb investing. Numb investing is as
If there is no credit problem, there is no solution
The benefits of the inventory are enormous. Decades of mistakes will come to light. Solutions will be obvious. People are not capable of remembering directly the chain of logic and
How credit affects your basic human needs
For each situation described above, write down how it affected your basic human needs, including the need for financial and material security, the need for self-esteem, the need for social
The super profits method for payday loans
The general approach to valuation that we recommend business owners to take is to employ two valuation methods and to compare the results. Your final opinion could, perhaps, be based on the average of these two results. The two methods we suggest that you use are the ’super profits’ method and price earnings (P/E) ratio [...]
How accountants understand good will in credit
Accountants, being less philosophical than lawyers, look at goodwill more simply. A short accounting definition of goodwill is as follows: ‘Goodwill is the difference between the total value of a business and its net tangible asset value’. Although this definition does not necessarily make the concept of goodwill any easier for business people to understand, [...]
The role of good will in credit taking
The notion of goodwill value is familiar to all business owners, although a precise description might be more difficult. Once we have looked at some definitions, we will tackle the question of valuing goodwill in a business. So, what is goodwill? Legal definition Probably the best-known legal definition is by Lord McNaughten in the case [...]