Introduction Course

The Robust Asset Allocation (RAA) Index

Robust asset allocation solutions should be relatively simple, minimize complexity, and be robust across different market regimes. Simultaneous to these requirements, the solution must be affordable, liquid, simple, tax-efficient, and transparent, otherwise, many of the benefits of the solution will flow to the croupiers and Uncle Sam. We recommend that investors explore our robust asset allocation framework and go for the do-it-yourself solution. You'll be paying yourself 1%+ a year via saved RIA fees. Is this the only solution? No. But any solution must be robust, simple, tax-manageable, and low-cost. This is our best effort to develop a simple model. Developing a complicated model is easy; simple is difficult.

The Quantitative Value Investing Philosophy

Benjamin Graham, who first established the idea of purchasing stocks at a discount to their intrinsic value more than 80 years ago, is known today as the father of value investing. Since Graham’s time, academic research has shown that low price to fundamentals stocks have historically outperformed the market. In the investing world, Graham’s most famous student, Warren Buffett, has inspired legions of investors to adopt the value philosophy. Despite the widespread knowledge that value investing generates higher returns over the long-haul, value-based strategies continue to outperform the market. How is this possible? The answer relates to a fundamental truth: human beings behave irrationally. We are influenced by an evolutionary history that preserved traits fitted for keeping us alive in the jungle, not for optimizing our portfolio decision-making ability. While we will never eliminate our subconscious biases, we can minimize their effects by employing quantitative tools.

Introduction to Finance: Class 8

Introduction to Finance: Class 8 Risks & Returns What are risks & returns? When it comes to financial matters, we all know what risk is [...]

Introduction to Finance: Class 7

Introduction to Finance: Class 7 Lessons from Capital Market History What is a capital market? Capital markets channel savings and investment between suppliers of capital such [...]

Introduction to Finance: Class 6

Introduction to Finance: Class 6 Making Capital Investment Decisions Where to begin? Capital investment decisions also can be called ‘capital budgeting’ in financial terms. Capital [...]

Introduction to Finance: Class 5

Introduction to Finance: Class 5 Net Present Value & Other Investment Criteria What is net present value? The difference between the present value of cash [...]

Introduction to Finance: Class 4

Introduction to Finance: Class 4 Stock Valuation What is stock valuation? There are many ways to determine the value or worth of a stock (refamiliarize [...]

Introduction to Finance: Class 3

Introduction to Finance: Class 3 Bonds & Interest Rates What are bonds? What is an interest rate?  Check this out: Introduction to Bonds Video Interest [...]

Introduction to Finance: Class 2

Introduction to Finance: Class 2 Discounted Cash Flow Valuation What is a discounted cash flow valuation? Discounted cash flow (DCF) is a valuation method used [...]

Introduction to Finance: Class 1

Introduction to Finance: Class 1 Time Value of Money What is the time value of money? Simply put, the value of money is dependent upon [...]

How to use the Fama French Model

The CAPM is prolific, but doesn't appear to work! In this blog, we discuss our views on how to use the Fama French model. (Note: [...]

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