Intrinsic value is not enough in a world of macro uncertainty You can do everything right as a value investor. Buy below intrinsic value. Demand a margin of safety. Stick to your thesis. And still, your portfolio can suffer when inflation spikes, interest rates lurch, or trade wars disrupt entire sectors. The truth is, intrinsic […]
How to Build Portfolio Resilience When Macro Shocks Destroy Valuations Read More »
You already know that your edge comes from buying undervalued stocks and letting them work over time. But even with a sound process and solid research, you keep second-guessing your trades. You hesitate when it’s time to enter. You trim winners too early. You panic when a position dips. The problem isn’t your strategy, it’s
Kelly Criterion Position Sizing: Avoid the Trap of Overbetting and Underbetting Read More »
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
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
How to Use the Kelly Criterion to Avoid Portfolio-Killing Mistakes Read More »
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 »
