Sublime

Fisher wrote in his book Common Stocks and Uncommon Profits:

When the bond market entered its golden era and became known as smart money, the U.S. federal debt-to-GDP ratio was only about 30%. That was a small and nimble market, and one that was effectively priced by professional traders.

Quant investors had emerged as the dominant players in the finance business. As of early 2019, they represented close to a third of all stock-market trades, a share that had more than doubled since 2013.6

When faced with a choice of wagers or investments, choose the one with the highest geometric mean of outcomes. This rule, of broader application than the edge/odds Kelly formula for bet size, is the Kelly criterion.

So, the Sharpe ratio measures risk-adjusted returns. And, the higher the number, the better. Also, the riskless rate of return that we use as a comparison to what we’re actually getting is the yield on 3-month T-Bills. So, if an investment gets a 10% return when the yield on 3-month T-Bills was 5%, we’re down to 5% of excess return. If the standard

He computed exactly what the inclination of the chutes must be (he called it a coefficient of reversion) in order for intergenerational balance to be preserved,

Graham’s formula of current price

Hedge funds—Funds that invest mostly in publicly traded equities but have the ability to take both long (i.e., buy a stock) and short (i.e., bet that a stock will decline in price) positions.