Author: Yuval Taylor

Money managers like to take into account not only the potential returns of an investment but also the amount of risk involved. They use all sorts of formulae to quantify this balance: alpha, beta, the Sharpe ratio, the Sortino ratio, value at risk, the gain/loss ratio, and so on. (Just…

A few years ago, I was faced with a conundrum. I had money in the bank from my advance for my next book and from the savings of living in Bolivia, where everything costs about a fifth of what it costs in the US—we’d been living there for about six…

Let’s look at the stock market in the most basic terms. Let’s forget for a moment about dividends and buybacks and mergers and acquisitions, people who buy and hold stocks for years on end, and frequent traders who buy and sell based on technical analysis. Let’s just consider the large…

I subscribe to a service called Portfolio123, which is ideal for analyzing data and choosing companies to invest in based on that data. It features accurate and up-to-date financial figures (most other sources are full of errors), extensive and flexible backtesting, an almost limitless capacity to work with financial formulas…

Here are perhaps the most common hypotheses about stock prices. The Efficient Market Hypothesis. A stock’s price is based purely on supply and demand. It will increase when investors buy it and decrease when investors sell it. A stock’s price therefore always reflects perfectly the estimation of investors as to…

I am not a financial wizard. I am not even an expert. I’ve been an active investor for less than three years now. But probably half of my thoughts and spare time during those years have been given to investment investigations. I finally understand how to beat the market. So…