Portfolio Management

rebalancing in factor based investing

Why Rebalancing Is Non-Negotiable in Factor-Based Investing

Most investors nod along when they hear about portfolio rebalancing. Yet when real money is on the line, emotions take over. It feels counterintuitive to sell your winners and add to your laggards. But if you use a factor based investing strategy, especially one that depends on the interplay between value, size, momentum, quality, or […]

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understanding investment risk

Understanding Investment Risk: How to Protect Your Portfolio Without Killing Your Returns

You don’t need to eliminate risk. You need to understand it, isolate it, and price it correctly. The biggest mistake investors make is treating all risk the same—panicking when markets fall, diversifying blindly, or refusing to act because the future looks uncertain. But the truth is: you don’t get paid for avoiding risk—you get paid

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asset allocation strategies

How the Best Value Investors Allocate Capital Across Asset Classes (Without Guessing the Market)

Smart Capital Allocation Separates Winners From Average Investors You’ve probably seen it happen—two investors buy similar stocks, but only one walks away with real wealth. The difference isn’t the stock picks. It’s how they allocate capital. Asset allocation is more than a pie chart—it’s the lens through which value investors make high-conviction, risk-aware decisions. And

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Carhart 4 Factor Model

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

You might think of the Carhart 4 Factor Model as an academic tool best left to quants and finance professors. But if you’re building a portfolio with real money and expecting it to outperform, this model can be a powerful ally. It doesn’t replace your process—it sharpens it. Whether you lean into small-cap value like

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the kelly criterion

How to Use the Kelly Criterion to Avoid Portfolio-Killing Mistakes

I have often expressed my opinion that in investing, buying is the most important transaction in a stock ownership lifecycle. You’ve done the research. The stock is undervalued, the margin of safety is wide, and the upside looks incredible and you know you are paying a great price. But how much should you allocate? Too

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risk tolerance

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

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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factor based investing

Factor Based Investing: The Secret Weapon of Sophisticated Portfolios

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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value averaging

Value Averaging: A Smarter Way to Buy Stocks at a Discount

Introduction: The Investor’s Struggle with Market Timing Even if you are a long term investor who is not concerned with short term price fluctuations, you still want to purchase stocks at low prices and sell at high prices. You do not actively try to time the market, but there is no reason to not take

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buying stocks on margin

Secrets of Buying Stocks on Margin Without Blowing Up Your Portfolio

I have made a lot of money buying stocks on margin. But I have also lost money. Investing on margin can bring rapid gains to your portfolio, but if you are not careful, it can also blow up your portfolio. We don’t want to blow up our portfolios. Let’s review how we can avoid this.

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rebalancing portfolio

Why Portfolio Rebalancing is Critical for Long-Term Investing Success

Most investors believe that once they pick good stocks, their main job is done. This is not true. First, you need to decide how much of your portfolio to allocate to each stock. You may choose to keep it simple and just equal weight everything. Or you may want to use more sophisticated strategies to

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