People Archives

Warren Buffett: ROE, Owner Earnings, Profit Margins, & $1

How does Warren Buffet determine whether a company is financially sound? What’s his “one-dollar test”? If you want to figure out whether a company is on solid financial ground, here’s what you need to evaluate, according to Warren Buffett: ROE (return on equity), owner earnings, profit margins, and the “one-dollar test.” Robert G. Hagstrom discusses Buffett’s analysis of these factors in The Warren Buffett Way. Continue reading to learn how Buffett assesses a company’s finances before deciding whether to invest in it.

Alexander Hamilton as Secretary of the Treasury: His Duties

How did Alexander Hamilton become Secretary of the Treasury? What were the major changes he made during his time in the role? According to Ron Chernow’s biography Alexander Hamilton, Secretary of the Treasury was one of the biggest roles to fill after the Constitution was ratified. President George Washington appointed Hamilton as the first person to fulfill this duty and changed the course of the US economy. Find out how Hamilton changed the US economy by imposing new taxes, which led to criticisms from other politicians.

What Philip Arthur Fisher Taught Warren Buffett About Investing

Beyond its financial statements, what indicates a company’s health? How can you evaluate the subjective qualities of a company? If you learn investing from Warren Buffett, you indirectly learn a vital principle from Philip Arthur Fisher. Fisher taught that, when you consider whether to invest in a company, you must look beyond its quantitative factors; you must also assess its qualitative factors such as its potential and management. Keep reading to discover what Warren Buffett learned from Philip Arthur Fisher.

How to Evaluate Management Like Warren Buffett: 3 Metrics

How should companies allocate capital? How important is it for businesses to resist trends? If you’re looking at a company as a potential investment, you need to assess its leadership. Warren Buffett looks for three things: how they allocate capital, how transparent they are with their finances, and how resistant they are to trends. Continue reading to discover how to evaluate management in the same way that Warren Buffett does.

You Are Your Best Investment: Advice From Pitbull & Qi Lu

Are you just getting started in your career (or a new career)? What are you willing to sacrifice now in order to succeed in the long run? When author Alex Banayan wanted to find out how the people at the top got there, he set out to interview them. Here’s what he learned from musician Pitbull and executive Qi Lu: Work hard today for a payoff tomorrow. Read more to learn why you are your best investment.

Kissing Frogs: Dean Kamen’s Advice for Creative Breakthroughs

Do you tend to give up when you don’t reach a breakthrough right away? What’s the best way to find a solution without wasting a lot of time? In The Third Door, Alex Banayan shares the insights into success that he learned from interviewing inventor Dean Kamen. Kamen’s secret is kissing frogs—in other words, persistently trying lots of solutions. Kamen cautions, though, that this must be done strategically so that you don’t waste time. Keep reading to learn how kissing frogs might be your ticket to success as it has been for Kamen.

How Did Hamilton Die? The Duel That Shook America

Why did Aaron Burr challenge Alexander Hamilton to a duel? How did Hamilton die? Ron Chernow’s biography Alexander Hamilton details the death and legacy of the political figure, including Aaron Burr’s involvement in his final moments. Hamilton’s death added to the end of Federalism. Keep reading to learn more about the events of Hamilton’s death and how people remembered him.

Focus Investing vs. Modern Portfolio: Warren Buffett’s Choice

What’s focus investing? How is it different from modern portfolio theory? Which approach does Warren Buffett take? According to Robert G. Hagstrom, Warren Buffett departs significantly from the mainstream when it comes to portfolio management. While most investors diversify their portfolios broadly to minimize volatility, Buffett focuses on a select handful of stocks to maximize his chances of above-market returns. Read more to learn about focus investing and why Buffett prefers it to the modern portfolio approach.

Alexander Hamilton: Early Life and Success as a Writer

What was Alexander Hamilton’s early life like? How did Hamilton go from an underprivileged boy in the Caribbean to a successful writer? Hamilton’s childhood is described in Alexander Hamilton by Ron Chernow as a rags-to-riches story. While some details about Hamilton’s parentage and upbringing are still unknown, there’s no denying that he had an extraordinary transformation. Keep reading to learn more about the early life of one of the most influential political figures in America.

Lady Gaga: Failure Can Be Turned Into Success

How to Deal With Failure at Work and Build Resilience

How did Lada Gaga respond to the criticism she received for her album ARTPOP? What can it teach you about failure and success? Many of the people whom Alex Banayan interviewed for his book The Third Door overcame difficult challenges in their lives and their careers. He found that, for Lady Gaga, failure is an opportunity to bounce back and avoid derailing progress. Read more to learn how Lady Gaga has dealt with criticism and failure.