第一單元、單字解釋，需寫出該單字定義(內容)

1. Bankruptcy  

2. Blockchain  

3. Debt-to-Equity Ratio (D/E)

4. Dividend Payout Ratio  

5. Debt/EBITDA Ratio  

6. Default Risk

7. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)

8. Earnings Per Share (EPS)  

9. Exchange-Traded Fund (ETF)

10. Economic Depreciation  

11. Economic Recovery 

12. Expansionary Policy

13. What Is Adverse Selection?       (答案請參閱本頁下方PDF)

14. What is Accounts Payable (AP)?  (答案請參閱本頁下方PDF)

15. What Are Agency Costs?              (答案請參閱本頁下方PDF)

第二單元、英翻中

(一) Warren Buffet Wise Investment Strategy

1. Stick With Long Term Value Investing Strategies：

Don’t let fear and greed change your investing criteria and values. Avoid being overwhelmed by outside forces that affect your emotions. Never sell into panic.

2. Invest in What You Understand：

Buffet only invests in companies he understands and believes have stable or predictable products for the next 10 – 15 years. This is why he has typically avoided technology companies.

3. Invest Like You Are Buying the Entire Company：

Treat investing in a stock as though you are buying the entire company. I always take a hard look at enterprise value because this is the total price of a company. In other words, it is the price you would be paying for the company if you could buy the whole company at current prices.

4. Companies with Competitive Advantages：

Companies with pricing power, strategic assets, powerful brands, or other competitive advantages have the ability to outperform in good and challenging times. A long term investing strategy requires investing in companies that can weather both good and bad economic times.

5. Find Quality Companies：

Buffet believes in quality investing. He would rather pay a fair price for a great company than a low price for a mediocre company.

6. Keep Cash On Hand：

Investment opportunities become available through broad market corrections or individual stocks that become bargains. These are not predictable events; so cash on hand is an important concept in value investing.

7. Require a Margin of Safety：

Purchasing stocks with a margin of safety below their intrinsic value reduces risk and provides an allowance for unforeseen negative events.

8. Compounding and Patience：

Buffet believes in long term value investing because he understands the power of exponential growth. Companies with sustainable profits can pay and grow their dividends. There are few more powerful long term investing strategies than dividend growth compounding.

9. Annual Turnover in Business: Inventory Turnover

Businesses use several annual turnover metrics for understanding how well the business is running on a yearly basis. Inventory turnover measures how fast a company sells inventory and how analysts compare it to industry averages. A low turnover implies weak sales and possibly excess inventory, also known as overstocking. It may indicate a problem with the goods being offered for sale or be a result of too little marketing. A high ratio implies either strong sales or insufficient inventory. 

The former is desirable while the latter could lead to lost business. Sometimes a low inventory turnover rate is a good thing, such as when prices are expected to rise (inventory pre-positioned to meet fastrising demand) or when shortages are anticipated. The speed at which a company can sell inventory is a critical measure of business performance. Retailers that move inventory out faster tend to outperform. The longer an item is held, the higher its holding cost will be, and the fewer reasons consumers will have to return to the shop for new items.   (答案請參閱本頁下方PDF)

10. Index Funds vs. Actively Managed Funds 

Investing in an index fund is a form of passive investing. The opposite strategy is active investing, as realized in actively managed mutual funds—the ones with the securitiespicking, market-timing portfolio manager described above. Lower Costs One primary advantage that index funds have over their actively managed counterparts is the lower management expense ratio. A fund's expense ratio—also known as the management expense ratio—includes all of the operating expenses such as the payment to advisors and managers, transaction fees, taxes, and accounting fees. Since the index fund managers are simply replicating the performance of a benchmark index, they do not need the services of research analysts and others that assist in the stock-selection process. Managers of index funds trade holdings less often, incurring fewer transaction fees and commissions. In contrast, actively managed funds have larger staffs and conduct more transactions, driving up the cost of doing business. The extra costs of fund management are reflected in the fund's expense ratio and get passed on to investors. As a result, cheap index funds often cost less than a percent— 0.2%-0.5% is typical, with some firms offering even lower expense ratios of 0.05% or less—compared to the much higher fees actively managed funds command, typically 1% to 2.5%.   (答案請參閱本頁下方PDF)

(二) Four Investment Ratios That Can Help You Make Money

1. Interest income is paid on any kind of debt instrument as compensation for loaning the investor's principal to the borrower or issuer. This type of income is paid by several different types of investments, listed as follows: Fixed-income securities, such as CDs and bonds. The rate of interest is usually preset and lasts until the security matures, or is called or put.

(1) Demand deposit accounts, such as checking, savings and money market accounts. Depositors receive interest as compensation for parking their cash in the account from the depository institution.

(2) Fixed annuities, which pay a set rate of interest on a tax-deferred basis until maturity.

Seller-financed mortgages, where the seller charges an agreed-upon rate of interest on the principal that is loaned to the buyer.

(3) Mutual funds that invest in the above vehicles.

2. Capital Gains：

Capital gains represent the appreciation in the price of a security or investment from the time that it was purchased. These gains can be either long or short term, depending upon whether the instrument sold was held for more than a year. Both equity and fixed-income securities can post gains (or losses). However, while fixed income securities can appreciate in price in the secondary market, they are designed primarily to pay current interest or dividends while stocks and real estate provide the bulk of their reward to investors in the form of capital gains.

Historically, the gains posted by stocks and real estate are the only investment returns that have outpaced inflation over time, which is one of their chief advantages. Of course, the markets move in two directions, and any security or investment capable of posting a gain can also result in a loss. Equities rise and fall with the overall markets as well as from corporate performance.

(三) Consider Investing in ETFs or Mutual Funds

(1) Picking individual winners and losers in the market is hard, and besides, putting all your money in a single asset is pretty risky. So how can you benefit from a rising market without having too much exposure to any individual stock or asset? Mutual funds and exchange-traded funds (ETFs) solve this problem by investing in a variety of assets all at once. Investing in multiple stocks or assets at the same time also increases diversification, which reduces risk. Low-fee ETFs and mutual funds are a great way to get broad exposure to the markets without having to worry about stock picking.

(2) There also are ETFs for assets beyond stocks, including international equities, commodities, real estate and more. The New York Stock Exchange recently moved to list cryptocurrency ETFs, so you may even be able to invest in bitcoin ETFs soon. Of course, just because an ETF exists for an asset doesn't mean it's a good investment. If you want exposure to a certain sector or the U.S. markets as a whole, investing in an ETF or mutual fund is a wise idea. If you don’t want to adjust your asset allocation yourself as time goes on, a target-date retirement account is the easier choice because those adjustments are automatically made for you.

影片2： 複利效應(Part 1 & 2)