One of the hardest yet most powerful things we can do is understand ourselves. I find it pretty challenging to know what it is that I really want. Me. And me alone. And, the reality is that everyone is just figuring it out. Our interests are changing. Our experiences are growing. Our worldview is expanding. This means we are not
First, what really is goodwill? If I say that I have built up lots of goodwill with my friends, that suggests that I have built a decent reputation with them. Maybe this could be in the form of favors. I may have done a lot of favors for free. This builds goodwill.I may have covered their backs when they were
How do companies assess the value of goodwill on the balance sheet? Companies do not amortize goodwill as an expense. Why? Because goodwill in a sense is indefinite. Meaning that it does not have a specified life. When we think about other intangible assets such as patents or customers, there is an average expected life span associated with them. Patents
To be well-rounded or unidimensional? This is a question I am trying to answer. Over the past few years, I have heard conflicting opinions. Be well-rounded. Go to a good college. Get a good white-collar job. Have a nice family. Be faithful. Be fit. Be funny. Etc. Be really good at one thing. Prioritize your career at all costs. I
Question In January, DropoutEdu sold and delivered $100 worth of textbooks to customers. But, the customers only need to pay cash for the purchase in February. Assuming a 25% tax rate, how much would DropoutEdu report in earnings in January? Answer Answer: 75 Cash is irrelevant to income statement earnings. First, the goods were transferred in January, so it aligns
The simple answer is just start. The better answer is reduce friction. There are a lot of things we want to start. Going to the gym routinely.Reading daily.Building a business.Etc. The common advice I got was just get started. Action at the start is more meaningful than information. We have all the information we need to take the first step.
What are callable bonds? A bond is a fixed-income instrument. It is a stream of cash flows that the issuer agrees to pay to the lender within a specified time. It is a fixed contract. If DropoutEdu issues a bond with a face value of $1,000, a coupon rate of 5% paid annually, and a 5-year maturity, this means that
What are the risks of taking on more leverage? Well leverage can work for or against you. It all depends on the direction of your absolute returns. If you generate a positive return, leverage further increases your returns. If you generate a negative return, leverage further decreases your returns. For instance, say you bought an asset for $100. Over the
Things get done when I am involved. Why? Is it because I have some crazy work ethic or pace? Maybe. Is it because I am intense? Maybe. But, really it’s because of when, not whether, I get involved. That is, I usually get involved in things near the deadline. I especially struggle with starting things ahead of time. I only
Negative splitting in running terms means that your last lap was faster than your previous. Good runners start slower and get faster as the race progresses. I am notoriously bad at this. Starting fast then slowing down. So, what do I do? Well, on my 9th 400, I slowed down my pace to 90 seconds. So that on the 10th
