Top 10 most expensive countries to buy a property

The housing market is subject to various housing and social state policies that affect people’s decisions about buying a house. Moreover, the market is also closely related to the banking sector and its lending activity, considering that most of the investments in immovable properties are made through loans, thus changes to the interest rate can have an impact on the entire construction sector. On the other side, changes to the price of immovable properties have a key role in the decisions taken by central banks all over the world. So, these two sectors depend on each other and influence each… Continue reading

Top 100 best world’s companies to work for

The performance of a company is linked to satisfaction of its work force. A company that does not measure and improve employee satisfaction may face increasing turnover, declining productivity and limited ability to attract and retain qualified replacements. Instead a company that provides better working conditions for its employees has better performance, because a quality work place is essential to keep your employees on task and working efficiently. Unfortunately, many companies do an inadequate job of measuring and improving the quality of the workplace and this implies negative performance for a company. In this work, we are not going to… Continue reading

Top 100 most admired companies in the world

Corporate reputation is the general opinion that people have about a corporation or enterprise. It is very important to have a good reputation, because if the company has a positive reputation, it can attract better people, it is perceived as providing more value, its customers are more loyal, it has higher P/E multiples and market values and lower costs of capital. Most companies, however, do an inadequate job of managing their reputations in general and the risks to their reputations in particular. They tend to focus their energies on handling the threats to their reputations that have already surfaced. In… Continue reading

The Black Litterman model: how to use it

The Black Litterman model was developed in 1990 at Goldman Sachs by Fischer Black and Robert Litterman and published in 1992. It is a sophisticated portfolio construction method that overcomes the problem of unintuitive, highly-concentrated portfolios, input-sensitivity, and estimation error maximization, in applying modern portfolio theory in practice. The model uses a Bayesian approach to combine the subjective views of an investor regarding the expected returns of one or more assets with the market equilibrium vector of expected returns to form a new, mixed estimate of expected returns. The resulting new vector of returns leads to intuitive portfolios with sensible… Continue reading

The modern portfolio theory: how to use it

Modern portfolio theory (MPT) or mean-variance model was developed by Harry Markowitz and published in 1952 by the Journal of Finance. It is an investing model that enables risk-averse investors to maximize returns for a given amount of risk or minimize the risk for a given amount of returns. For developing the MPT he was later awarded a Nobel prize. The risk of every investing portfolio returns has two components: systematic risk and unsystematic risk. The first is the market risks that cannot be diversified away. The second the specific risk of a stock and can be diversified away by… Continue reading