latest posts

easter_eggs
Diversification is a negative price lunch
We will see how the diversification assessment framework provided by conventional finance theory is not applicable to what long-term investors really care about – compounded returns. As long-term investors...
Roulette
The Kelly criterion, capital market parabola & the almighty Sharpe ratio
Expected return is at the center of financial analysis. But when you hear expected return, you can’t be sure if it is geometric expectation (time average) or arithmetic expectation (ensemble average)....