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Investing
A Pragmatic Approach to Market Efficiency
The hypothesis that did not want to die Wherever you look in modern finance, one concept permeates everything. You cannot escape the Efficient Market Hypothesis (EMH). From Modern Portfolio Theory to derivative pricing, to everyday finance jargon terms such as alpha and beta, the inevitable as...
My Framework for Investment Returns
Seeking a Margin of Safety in Growing Companies As an investment practitioner, I have always been frustrated with traditional valuation methodologies. Some are too simplistic, like the comparative of multiples. A stock may be “cheap” when we look at its earnings multiple (or book value multiple...
The case for buying good businesses
Good things happen when you buy quality Why do investors focusing on superior businesses often get attractive results? Why should quality not be offset by an expensive price? Over the last two decades, the returns achieved by private investors and fund managers buying only good businesses have b...
Psychology
You are more naive than you think
How beliefs are created, and their consequences Our beliefs are the core of our identity. They shape how we see the world and how we act. They help us make decisions. Our beliefs have consequences on what kind of people we frequent, how we spend our time, and why we do what we do. But how do we ...