Came across this very interesting management philosophy by Ray Dalio, founder of Bridgewater Associates. Link here. There is also a more detailed set of principles found in a link at the bottom of the page. Link here. Worth a read.
Just wanted to record a typical “cycle” when a position drops: First, you would think – it only dropped for one day today… yesterday it was doing great.. it can easily jump back up to yesterday’s levels the next day.. so let’s not do anything now… wait it out and see what happens… what if you … Continue reading
Book: Valuation: What Assets Are Really Worth by Alfred M. King Review: Good book on Valuation as a profession and how to value all kinds of things. Key Points: Cost, Value, and Price Appraisers determine value. Cost and selling price are aids in determining value. Value is the amount at which willing buyers/sellers are willing … Continue reading
An M&A transaction is accretive (i.e. EPS of the combined company > EPS of the acquiring company) if the acquirer’s P/E ratio > target’s P/E ratio. This is for the situation where the full consideration is paid by issuing new shares in the acquirer. This also assumes that the earnings of the combined company is … Continue reading