Search results

Lol I love it!! Excellent comment. I might be one of those robots... L)

MPT ¡V Strike 1: Investors Are Rational A friend of mine told me that I should look at the Modern Portfolio Theory (MPT) for some ideas on what to write about. Boy was he right. But first, what is MPT? MPT is a theory of investment which attempts to maximize a portfolio¡¦s expected return...

MPT – Strike Three: Investing Is A Trade-Off Between Risk And Expected Return Now here is where I start to get a little frustrated. You might even say that I get a little pissed off. This is less of an assumption of MPT but rather a STATEMENT that really brings the whole structure of what the...

MPT – Strike 2: Markets Are Efficient Ready for the next blunder that Modern Portfolio Theory assumes? Are you?!?! Well get ready for the next big assumption that MPT makes which is…………………………… MARKETS ARRRRRRRE EFFICIENT What this means in that in order for MPT to work...

MPT ¡V Strike 1: Investors Are Rational A friend of mine told me that I should look at the Modern Portfolio Theory (MPT) for some ideas on what to write about. Boy was he right. But first, what is MPT? MPT is a theory of investment which attempts to maximize a portfolio¡¦s expected return...

1. Focus on the Intrinsic Value of Companies ¡V This is by far the most important rule for the value investor. Intrinsic value can be defined as ¡§the actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of...

I had a little argument the other day with someone about diversification. Well not so much an argument but more of a debate. Now, I understand diversification and the reasons for why it is used, but I don’t think people realize that there are also some pitfalls that come with it. But let’s...

Last Thursday I watched a segment on BNN in which the co-host (some Asian man) kept valuing stocks based on their forward earnings. He talked about how the price was undervalued or overvalued or on par with what the company was expected to earn in the future. Some of his valuations were even...