Peter Lynch is one of the most successful and well-known investors of all time. Lynch is the legendary former manager of the Magellan Fund at the major investment brokerage Fidelity. He took over the fund in 1977 at age 33 and ran it for 13 years. His success allowed him to retire in 1990 at
What Is the Peter Principle? The Peter Principle is an observation that the tendency in most organizational hierarchies, such as that of a corporation, is for every employee to rise in the hierarchy through promotion until they reach a level of respective incompetence. In other words, a front-office secretary who is quite good at their
What Is Pet Insurance? Pet insurance is an insurance policy bought by a pet owner which helps to lessen the overall costs of expensive veterinary bills. This coverage is similar to health insurance policies for humans. Pet insurance will cover, either entirely or in part, the often expensive veterinary procedures. Evaluating and comparing pet insurance
What Is a Petition? A petition is a legal document formally requesting a court order and setting out the petitioner’s version of the facts at issue. When a lawsuit is filed, it moves through a series of stages before it is finally resolved. In civil cases, the first stage is the filing of a petition
What Is Petro (PTR)? The cryptocurrency Petro was proposed by the president of Venezuela, Nicolas Maduro, in December 2017. The Petro was launched in 2018 but has failed to gain traction or help solve the country’s economic problems. It was supposedly backed by Venezuela’s oil, natural gas, and mineral reserves for stability. Key Takeaways Petro
What Are Petrodollars? Petrodollars are crude oil export revenues denominated in U.S. dollars. The term gained currency in the mid-1970s when soaring oil prices generated large trade and current account surpluses for oil exporting countries. Then as now, oil sales and the resulting current account surpluses were denominated in dollars because the U.S. dollar was—and remains—by
What Is Petroleum? Petroleum, also called crude oil, is a naturally occurring liquid found beneath the earth’s surface that can be refined into fuel. A fossil fuel, petroleum is created by the decomposition of organic matter over time and used as fuel to power vehicles, heating units, and machines, and can be converted into plastics.
What Is a Performance Budget? A performance budget is one that reflects both the input of resources and the output of services for each unit of an organization. The goal is to identify and score relative performance based on goal attainment for specified outcomes. This type of budget is commonly used by government bodies and
What Is Performance-Based Compensation? Performance-based compensation is an incentive-based form of compensation that can be paid to portfolio managers of investment funds. Regulated mutual funds with performance-based compensation may add approximately 0.20% to their management fees for performance-based incentives. Within the investment industry, hedge fund managers are most well known for receiving high levels of performance-based
What is a Performance Fee? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized
