Aug 21, 2024

“Can I achieve the same rate of return as Buffett?” A student once asked me this question.

Aug 21, 2024

What is Pre-market trading in U.S. stocks？The normal trading hours for the U.S. stock market are from 09:30 AM. to 4:00 PM. on trading days, without a break at noon, allowing investors to trade stocks during these regular hours. However, besides these hours, pre-market or after-market trading is also possible in the U.S. stock market.

Aug 21, 2024

U.S. stocks are traded on multiple exchanges, with the two most important being the New York Stock Exchange (NYSE) and the NASDAQ. In addition to these two major exchanges, there are other secondary exchanges and over-the-counter (OTC) systems where investors can trade U.S. stocks. Here are some of the primary U.S. stock trading markets:

Aug 21, 2024

We can think of the circuit breaker mechanism as a “fuse”. When the market fluctuates too violently, the fuse will melt and break, suspending trading activities in the market temporarily. Trading will resume after a while.

Aug 21, 2024

Currently, the United States represents the most significant stock market globally, with its overall market value accounting for more than 50% of the global stock market and hosting the world’s most important companies.

Aug 21, 2024

Stock buybacks are a very popular method among corporations. If executed properly, they can benefit shareholder equity, but if mismanaged, they can also lead to company difficulties. Warren Buffett, in his 2011 letter to shareholders, mentioned that Berkshire Hathaway would only repurchase shares under two conditions:

Aug 21, 2024

The Buffett Indicator is a renowned metric used to assess whether the current stock market is overheated or undervalued. It was highlighted by the legendary investor Warren Buffett in a 2001 interview with Forbes magazine. This indicator measures the ratio of the total market capitalization of the stock market to the Gross Domestic Product (GDP). Buffett pointed out that this ratio is the best indicator for determining whether the overall stock market is overvalued or undervalued. This indicator often appears in various media reports, especially when the figures are at extreme levels.

Aug 21, 2024

In U.S. stock trading rules, investors using cash trading accounts need to be aware of the Good Faith Violation and the 90-Day Trading Restriction rules. These rules are mainly in place to regulate the buying and selling of unsettled funds.

Aug 21, 2024

The 13F report (13 Filings or SEC Form 13F) is mandated by the SEC for investment institutions managing over $100 million, including mutual funds, hedge funds, pension funds, trust institutions, insurance companies, etc., to disclose their stock positions every quarter.

Aug 21, 2024

The short squeeze has surprised markets on many occasions. Learn more about what it is, its causes and the effects on traders.