Tag: markup
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When Math and Emotion Collide
In my previous Discount Rate is not Markup Rate post, I explained how the mark-up rate is always higher than the discount rate. This point is crucial when it comes to investing. Say a stock price has dropped in value from RM10 to RM5. If you were to purchase the stock at RM5, it simply…
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All About The Standby, Standby, Standby
In this post, I will discuss the importance of “standby cash”. A simple but very important concept in the investment field. Before that, some observations from my previous post Discount Rate is not Markup Rate (Part 2). All four investors invested in the same stock, Company ABC. However, the rate of return for each investor…
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Discount Rate is not Markup Rate. Why?
Discount rate is not markup rate. To understand the difference between both rates, try answering the below two questions without thinking much about it. 1. What is the discount rate from RM6 to RM3?2. What is the markup rate from RM3 to RM6? I have asked these questions to my close friends and the majority…
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