Modern Portfolio Theory and the Efficient Frontier
How Harry Markowitz’s 1952 paper reshaped investing: expected return, variance, correlation, the efficient frontier, and where MPT breaks in real markets.
Investing Theory
Evergreen explanations of valuation, risk, portfolio construction, and market behavior. Articles use worked examples and sourced data to connect financial theory with real market decisions.
The Sharpe Ratio Explained: Formula, Uses, and Traps
Sharpe ratio, made simple: the formula, a worked example, long-run values for stocks, bonds, and Berkshire, and the traps that make it lie.
WACC Explained: The Weighted Average Cost of Capital
WACC is the blended hurdle rate a company must earn on its investments. Learn the formula, a worked example, and the mistakes that break the number.
Reddit Pops 14% on Higher AI Data-Licensing Fee Talk
Reddit surged 13.93% Tuesday as investors bid up shares on reports of higher AI data-licensing fees, spotlighting a maturing content-for-training market.
Factor Investing: Value, Momentum, Quality, Size, Low-Vol
Factor investing in plain English: the five equity factors, where they came from, how Ken French and AQR build them, and where each one breaks.
CRH Nears $8B+ Deal for Arcosa, Its Largest-Ever Takeover
Building-materials giant CRH is reportedly close to buying Arcosa for $8B+, what would be its largest acquisition and a major US infrastructure roll-up.
What Is WACC? Cost of Capital Formula and Worked Example
WACC blends a company’s cost of equity and after-tax cost of debt by their weights in capital structure. The formula, a worked example, and the traps.
Sortino Ratio Explained: Why Downside Risk Beats Sharpe
The Sortino ratio measures returns per unit of downside risk, not total volatility. Here is the formula, a worked example, and when to use it.
Maximum Drawdown Explained: The Real Risk No Average Captures
Maximum drawdown is the worst peak-to-trough loss a portfolio has taken – the single number that captures the pain volatility hides.
WACC Explained: How Companies Calculate Their Cost of Capital
WACC blends the cost of equity and after-tax cost of debt into one discount rate. Here is the formula, a worked Apple example, and the pitfalls to avoid.