Artificial Intelligence is currently a hot topic, having an impact in many areas, like image recognition, text generation and data science. One topic, I am curious about is, if and how artificial intelligence is doing with highly random and noisy data, as it appears in short-term-price-fluctuations on the stock market. From programming courses in artificial … Continue reading Experiment: artificial intelligence vs. buy and hold
This article describes an advancement of the logistic growth model, described in a previous article. The logistic growth model will be used for predicting future revenues and earnings of a company. The model is especially suitable for high growth companies in order to give a clue of the value of the company. For companies at … Continue reading Advanced growth model
Have you ever had the thought "I wan't to buy this stock, but I will wait for a cheaper price"?On this article, I want to answer the question, whether it is useful to use limit orders for buying stocks. I didn't find the information I was looking for anywhere, so I started to create my … Continue reading Is it worth, buying shares with a limit order?
In this article, I want to have a look at randomness and what we can learn from it. The effects of randomness can be explained best with simple examples, therefore let's play heads or tails: You have to stake 100$ and when tail appears, your stake will be doubled, so you will have 200$. When … Continue reading Managing randomness
As described on a previous post, logistic growth models can be used on evaluating growth stocks. Tesla would be a perfect example for applying this model, as Tesla is a fast growing company with already a record of business activities over the last years and a more or less predictable business model. First I want … Continue reading Evaluating Tesla Inc. with logistic growth functions
We all look at growth rates, when evaluating the prospects of a business or a market. It helps us to better estimate, what we are willing to pay now, in order to reach the "sweet fruits" in the future. Very often, NPV (net present value) calculations are a good method for the evaluations. However, it … Continue reading Logistic growth models
The PEG-ratio (Price-Earning-Growth-Ratio) is a common ratio for evaluating stocks and is very easy to calculate (by dividing the current P/E-ratio by the expected earnings-growth rate in percent). This ratio can give you a quick insight, whether a growth company is over- or undervalued at the stock market. Many people believe that a PEG ratio … Continue reading The reason why I never use the PEG-ratio
Ideas on economics - by Martin Etzl 