Food for Thought #54 // Links

Includes: 2022 mistakes to avoid, Russia, Japan, Energy, …

Portfolio construction (part 1)

I struggle to decide on position sizes and wanted to formalize the process for some time. This is part one that ends with a conclusion I am eager to build on.

Book-review: Fortune’s Formula by William Poundstone

I read about Fortune’s Formula somewhere and put it on my reading list because I am greatly interested in the topic of Position Sizing which the book is about and more specifically about the Kelly Formula.

Food for Thought #24 // Links🔗

This time the most interesting content I stumbled over includes: reviews, TMUS, SESG, BBBY,

Thoughts on my rising Pandora position

I trimmed my position in Pandora during this year after a strong rebound of the share price. It continued to perform very strongly and it is again time to decide about my rising Pandora position. The share price has just crossed my last fair value estimate …

The Importance of Position Sizing and Trade Execution Rules – Have You thought enough about it?

Risk management needs strict rules. To limit potential harm from our emotions, errors and bad luck, the introduction and adherence to specific position limits and execution rules are very important. I am going to discuss some rules you might find useful below …

What is ‘Averaging Down’ and when you should (not) do it?

When we like to buy a security at current prices, we should love it at lower prices and buy more accordingly. This thinking has some merit and is called averaging down. But it is not without risks…

Quicky on Pandora A/S: After Strong Recent Performace is Position Trimming Needed?

From its intraday low on March 16th (DKK 182), Pandora rallied strongly with a performance until today (June 4, DKK 362) of +85%, more than +50% within the last month. Since Pandora represents a considerable position of my equity portfolio, I want to do a quick recap of my investment thesis and answer the question if a position resizing might be warranted.