Portfolio Management

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 […]

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

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

Factor Based Investing: The Secret Weapon of Sophisticated Portfolios Read More »

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

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

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.

Secrets of Buying Stocks on Margin Without Blowing Up Your Portfolio Read More »

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

Why Portfolio Rebalancing is Critical for Long-Term Investing Success Read More »

investment policy statement

Secure Your Financial Future: Create a Winning Investment Policy Statement

Introduction: Why Every Investor Needs an Investment Policy Statement How do you stay disciplined when markets are unpredictable? An Investment Policy Statement (IPS) serves as your financial roadmap. It guides your investment decisions and keeps you focused on long-term goals. This document provides a framework that helps you manage the emotional and strategic challenges of

Secure Your Financial Future: Create a Winning Investment Policy Statement Read More »

diversification in investing

Diversification in Investing: Is It a Free Lunch? A Value Investor’s Guide

Harry Markowitz said this about diversification in investing: Diversification is the only free lunch in investing. As I write this towards the end of 2024, we have seen a number of years where a very select group of stocks has dominated the market returns. The Magnificent 7 stocks, for example, contribute to a large chunk

Diversification in Investing: Is It a Free Lunch? A Value Investor’s Guide Read More »

diversification in investing

Why Traditional Portfolio Allocation Fails Event Driven Stocks—And My Strategy to Solve It

I have a new stock candidate to add to my small cap value portfolio (which is part of the Premium membership at my newsletter on Substack). This poses a dilemma. My portfolio is allocated based on Kelly Fractions. This is the Kelly Criterion adjusted for a multi-asset portfolio. The allocation takes the correlations and covariances

Why Traditional Portfolio Allocation Fails Event Driven Stocks—And My Strategy to Solve It Read More »

diversification in investing

Why Strategic Allocation Beats Stock Picking: The Hidden Science of Long-Term Gains

Most investors approach long term investment portfolio allocation very casually. Typical processes involve investing whatever cash is available, investing an equal number of shares among all stocks in the portfolio, investing an equal number of dollars among all stocks in the portfolio, or setting some thresholds (I will invest $x to start and if the

Why Strategic Allocation Beats Stock Picking: The Hidden Science of Long-Term Gains Read More »

Scroll to Top