The Standard and Poors 500 Index, a U.S. market benchmark, is quoted daily, with institutional and personal investments mirroring its ebbs and flows. In his 2017 Annual Letter to Shareholders, Mr. Warren Buffet shared findings of a financial experiment he conducted between 2008 and 2017. In this experiment, Mr. Buffet quantified the value in passively investing in the Standard and Poors 500 Index compared to having an energetic style. Passively Investing in the S&P 500 delivered a 2.0% better-annualized return. Launched in 2018, the Fidelity ZERO Large Cap Index Fund (FNILX) speaks to Mr. Buffets’ advice of investing in a “virtually cost-free” index fund. In reality, the FNILX Index Fund is cost-free, i.e., no expense ratio, an index fund that looks almost like the Standard and Poors 500 Index.
A word so typical and associated with every widget in the 21st-century economy is a subscription. Type the words Subscription Economy in Google. One will come across the webpage The Subscription Economy prepared by Zuora Inc (NASDAQ: ZUO), a subscription software company out of Redwood City, California. As companies large and small transition to include a subscription-based services model to their businesses, Zuora Inc (NASDAQ: ZUO) appears an exciting prospect powering this transition. The company has grown its Annual Contract Value ($100,000 or greater) customer base from 415 in April 2018 to 694 as of July 2021.
Reciprocated five times a week, every morning, working individuals wake up with a plan to arrive and perform the necessary tasks at hand to earn a rewarding paycheck at the end of the week. Thus, our compensation derives the length and breadth of our spending, at least logically speaking. From a minimal background in personal finance, I encountered an index card that was informative, simple, and easy to remember. Dr. Harold Pollack of The University of Chicago created this index card and has served as my basis for approaching my finances. In this entry, I share how I applied and minorly adjusted the instruction on Dr. Pollack’s index card to fit my needs.
In a year where the 10-year U.S. Treasury Yield started at 0.93%, peaked at 1.74% in the middle of March, and closed at 1.33% as of September 13, 2021, the stock market and the bond market attempt to tell two different stories. A particular minutia of the stock market I was interested in was the Standard and Poors Global 100 and the NASDAQ 100, since both have a sample size of 100 of the most prominent companies by market capitalization, with a caveat- the NASDAQ-100 is skewed more towards Technology Stocks, almost 25 percentage points better. Interestingly, the interaction between the NASDAQ-100 and Standard and Poors Global 100 starting 2005 against a depressing 10-Year U.S. Treasury Yield helps understand just how much Technology Stocks have benefitted from a low “risk-free rate of return” environment.
With almost 60% of U.S households and 20% of Annual Fuel Use, the Water Heater is a piece of technology quintessential to a home. Founded in 1874 and formerly known for its steel frame, bomb-casing, and welding capabilities, Milwaukee-based A.O. Smith Corporation (NYSE: AOS) currently manufactures residential and commercial gas, tankless and electric water heaters. With a current market capitalization of $11.56 billion and 13,900 employees, the company is a Standard and Poors 500 component and a Dividend Aristocrat. In this essay, I examine the Share Price starting 2000 against the Producer Price Index for Domestic Water Heaters against New Houses Sold and the Segment-based Quarterly Net Sales to identify Water Treatment Segment as a new driver for revenue growth. Shares of A.O. Smith have comfortably outperformed the Standard and Poors 500 Index and the Standard and Poors 500 Dividend Aristocrats index while raising dividends.