Shailesh Kumar, MBA

Carhart 4 Factor Model

Why the Carhart 4 Factor Model Still Matters (Even for Value Investors Who Ignore It)

Leave a Comment / Factor Investing / /

The Carhart 4 Factor Model is a framework developed by Mark Carhart in 1997 that explains portfolio returns using four factors: market risk (MKT), company size (SMB — Small Minus Big), value (HML — High Minus Low), and momentum (UMD — Up Minus Down). It extends the Fama-French three-factor model by adding momentum, which captures […]

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investing in closed end funds

Why Closed-End Funds Might Be the Most Misunderstood Investment on Wall Street

Leave a Comment / Closed End Funds / /

Everything You Need to Know About Investing in Closed End Funds—From Discounts to Dividends and Beyond Introduction: The Opportunity Hiding in Plain Sight If you’ve spent any time exploring income investments, you’ve probably come across closed-end funds (CEFs)—and maybe skipped past them. They’re often lumped together with mutual funds and ETFs, yet behave nothing like

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free cash flow

Free Cash Flow and the Margin of Safety: A Double Defense for Value Investors

Leave a Comment / Financial Ratios & Metrics / /

Smart Investing Isn’t About Forecasting—It’s About Protection If you’ve been investing long enough, you know this truth: it’s not the winners that make or break your portfolio—it’s the losers. Avoiding big mistakes is the real game, and two tools help you do just that. One is the margin of safety. The other is free cash

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dividend growth strategy

How to Build a Dividend Growth Fortress That Survives Any Recession

Leave a Comment / Dividend Growth Stocks / /

Why You Need a Recession-Proof Dividend Growth Strategy Today You’re not just building a portfolio. You’re building protection—against inflation, uncertainty, and the next bear market. While most investors are glued to CNBC and trading apps, worrying about when the next rate hike will crush their growth stocks, you’re taking a very different approach. You’re quietly

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the kelly criterion

Kelly Criterion Position Sizing: Maximize Long-Term Returns While Avoiding Ruin

2 Comments / Managing Risk / /

The Kelly Criterion is a mathematical formula for position sizing that calculates the optimal fraction of your portfolio to allocate to each investment. It maximizes long-term capital growth while minimizing the risk of ruin — replacing gut-based allocation with a precise, repeatable process grounded in probability theory. Key Takeaways What Is the Kelly Criterion—and Why

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risk tolerance

Why Risk Tolerance Is the Single Most Underrated Edge in Value Investing

Leave a Comment / Managing Risk / /

The Edge You’re Ignoring Could Be Costing You Millions. For value investors, risk is not the volatility in the market or in the stock price, but in fact it is how you react to it. Most investors obsess over metrics like price-to-earnings ratios, discounted cash flow models, or EBITDA margins. And yet, the biggest edge

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dividend etfs or stocks

Dividend ETFs vs. Building Your Own Portfolio: When to Choose Each

Leave a Comment / Income Investing / /

You want consistent, growing income. The kind that frees you from the anxiety of market volatility and makes your wealth feel real. You’ve probably considered dividend ETFs—the set-it-and-forget-it kind of investing that promises instant diversification and ease. But if you’re serious about compounding wealth through dividends, a deeper question remains: Should you build your own

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factor based investing

Factor Based Investing: The Secret Weapon of Sophisticated Portfolios

Leave a Comment / Factor Investing / /

You already know that alpha doesn’t come from following the herd. But while most investors chase the latest trend, the real edge is hiding in plain sight—inside academic research, portfolio construction, and consistent factor exposures. Factor-based investing isn’t just smart—it’s scientific. And when executed correctly, it becomes your compounding engine: systematic, repeatable, and scalable. In

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key financial ratios

The 7 Key Financial Ratios That Actually Matter for Long-Term Value Investing (and 1 that Doesn’t)

Leave a Comment / Financial Ratios & Metrics / /

You’ve seen the lists. “21 Ratios Every Investor Must Know.” “15 Metrics That Predict Market Outperformance.” Most of these lists are bloated with academic fluff or Wall Street distractions that won’t move the needle for long-term value investors like you. What you need is precision. You need the seven key financial ratios that actually matter—ratios

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buffettology stocks

54 Best Stocks to Buy Now Inspired by Buffettology (Large Cap, Mar 2025)

Leave a Comment / Stock Screen of the Day / /

Wonderful companies at fair prices has been Buffett’s mantra and this screen gives you that. These are large cap stocks that are selling at great price. They may not be undervalued in the classical sense, but these are quality companies with pedigree, and one can reasonably expect them to continue to grow and do well

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