Theory and Education
Risk and the math of returns
The Volatility Drain
- arithmetic vs geo: how compounding changes the mean returns
- how compounding messes with your observations in real life
- protecting yourself from the impairment that comes with volatility
- cross insights from options trading
Path: How Compounding Alters Return Distributions.
- An exploration of how path or sequence of returns affects compounding. The compounded case isĀ better when we trend and worse when we āchopā. If bet a fixed percent of our bankroll fair coin toss game we are in compound return land. Compounding is not ābadā, it just alters the distribution of our terminal wealth
- Lessons from compounding coin flips
- Your overall expectancy is zero because the common chop balances the rare but heavily compounding trends.
- Paths affect distribution of p/l even if they donāt affect expectancy.
- Since we actually experience āpathā and all its attendant emotions, it pays to think about the composition of expectancy and returns.
Where Does Convexity Come From?
- What convexity is and what convexity isn't.
Do Professional Investors Understand Fees?
- Fees need to be considered in light of the strategy. This requires being thoughtful to understand the levers. Unless you are comparing 2 SP500 index funds, itās rarely as simple as comparing the headline fees. If we all agree that fees are not only critical components of long-term performance while being one of the few things an allocator can control, then misunderstanding them is just negligent. A one size fee doesnāt fit all alternative investments so a one size rule for judging fees cannot also make sense. Compared to the difficulty of sourcing investments and crafting portfolios getting smart about fees is low-hanging fruit.
Portfolio theory is not intuitive
Series on option greeks
The meta of market efficiency
Finding edges
Being numerate
Training, Interviews, & Career
Applied Trading Concepts
Options and Volatility
Personal Finance
Real estate and property
Investing
Opinion
Ideas that grabbed my attention
My own musings on market dynamics
Portfolio Theory and Life
Additional Investing Resources