Harry Markowitz won the Nobel Prize in 1990 for his work in showing mathematically how to reduce risk and create better returns by diversifying across regions and assets. Risk is measured in volatility, i.e. how your assets fluctuate in price. Such a theory was new when it was first released in the 1950s, and Markowitz…
The marginal rate of return is the most crucial factor to compound efficiently. In the long run, your pension is more dependent on the marginal rate of return than the original investment. If you are into dividend investing, you should study the marginal rate of return on your investments. We argue that dividend investing is…
I believe Buffet’s annual letters are an invaluable source of investment knowledge and advice. I recently reread all of them and Lawrence Cunningham’s The Essays Of Warren Buffett – Lessons For Investors And Managers, a book containing excerpts from all the annual letters. This is timeless investment quotes valid for all investors no matter your…
