Month: January 2025

In the previous post, we discussed the Kelly criterion as a useful tool to determine allocations of stocks.  To briefly recap, the Kelly criterion is as follows: f = p – (1-p)/b Where, f is the fraction of the bankroll or portfolio value to wager, p is the probability of a win (1-p is the…

We have focused a lot on how to pick stocks and the idea of buy and hold. Now we should take a look at asset allocations and how much of our portfolio we should put into each stock. There will be a lot to talk about, so we will do this over the next two…

In the last several posts, we discussed options and why you should virtually never buy options.  We also talked about how selling options can be a part of a value strategy, and why there are fewer situations than you think where option selling is the right thing to do for your long term investing success. …

The last couple of posts were dedicated to the introductory level primer on what options are, what buying and selling an option means, and how selling options can be part of a value strategy.  Many value investors think that selling options is a great part of their strategy to buy and sell stocks with some…