Tuesday, June 2, 2009

One class to ruin them all..

Finance is a difficult class. There are lots of formulas, ambiguous terminology and a general sense of "why in the name of all that is good and decent do I ever need to know the Valuation of equity is".

The class is almost over, we are doing our Financial analysis on PepsiCo now, as a final project. My take on it is to invest, BUT DO NOT! I repeat DO NOT use this as any kind of investing advice, this is strictly my own take, and I am not gonig to follow through on it.

There was a time, in the pre-DotCom boom, where I invested in the blue chip companies. I owned Netscape, AOL, CISCO, and couple of other companies. When the DotCom crashed, I made it out with a dedcent profit that allowed me and my wife to finance a purchase of our condo.

I haven't played or invested since. Now that I am taking the class, and have a better understanding of finance, and creative accounting, my feelings regarding of investing in the stock market are reinforced.

Here's what I think, if anyone cares. It takes a lot of research and understanding of the internal works of all things financial to make a truly GOOD investement. If you do not have the time and patience DO NOT invest. IT WILL COST YOU!

Now, I have to go back to calculating Additional Funds Needed, Ecomomic and Market Value Added.

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