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1

"How" the hand does anything is easily answered by considering what the hand "really is". "The invisible hand" is a metaphor for the concept that Where there is a way that can be found to make money by undercutting what someone else is doing then someone (or entity) will do it. or - When an opportunity exists to make a profit by reducing ones costs ...


2

The key question is what the currency change does to the fundamental value of the company. If the company is an American widget company AmCo with a primarily American customer base and a primarily American supply chain, then it should be broadly insulated against the price of Euros. (At least, until you consider irritating things like competitors. There's ...


8

If the shares are fungible between the exchanges, you are correct that the prices will be kept nearly equivalent by arbitrage. The missing piece to understand how the price reacts to currency fluctuations is the fundamentals of the company. This applies regardless of whether the shares are traded in a single currency or multiple currencies. It's a matter of ...


11

It doesn’t Dual-listed companies are more complex than you think. They are not a single company listed on two exchanges, they are two separate companies that have claims of the cash flow of the same business under the terms of their equalization agreement. So you can’t buy a share on one exchange and sell that same share on the other. In theory, because ...


1

Retirement portfolios have two phases: an accumulating phase where you are saving money and a consumption phase where you are using up the saved money. During the accumulating phase you are saving money every month and you are looking for the greatest growth possible. This is achieved by having a stock heavy portfolio with a few or no bonds. Since this ...


13

what else is wrong with focusing on less developed markets exclusively? Less developed markets are risky, because they're volatile and prone to high inflation. That means you can lose a lot of money. What am I missing? The debt burden isn't as bad as you think it is. If the developed Western economies crash, everyone else's will too.


3

This depends how you define risk. In the sense your portfolio will be substantially less diverse and likely more volatile, this is indeed more risky. What you suggest is a form of timing the market, by weighing more heavily into sectors you consider undervalued and less into those you see as overvalued at the time. Then readjusting later based on what ...


0

Any investment can be high risk if you don't understand the investment and how it works. Professional stock market investors looking for long-term investments will examine the fundamentals of a company, its balance sheets, board meeting minutes, and perhaps even meet with the president and get a tour of the operation before making a decision to purchase ...


2

It terms of level of risk, from what I've seen the broad risk is comparable to broad equities (returns in the 7-15% range), but rather then the level of risk, real estate presents different risks than bonds of equity. The benefit of this is that real estate is a diversifying asset when combined with bonds and equity, since the odds of "bad things" happening ...


7

Even if you own a roulette wheel, letting a gambler bet you your entire net worth (or even sizeable % of it) in a single wager is a very high risk thing to do, despite the fact you have a clear edge and will win over time in a very stable manner as they make repeat bets. The main problem for investors outside of people already sitting on millions+ is it is ...


2

I would argue that you're only considering one of many variables (the brand) in the survivability of a franchise. I would also consider these variables critical if you're thinking of starting a franchise: Location Competition Financial health - how much do you need to borrow to operate? How much margin do you need? Local market - how many people will want ...


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