Theory A : Visualize Value Investing

Revealing the hidden structure of value investing at https://www.theory-a.com.

The hottest Substack posts of Theory A : Visualize Value Investing

And their main takeaways

The Inescapable Inequality of Exponential Growth

4 HN points • 12 Feb 23

💰 Finance Investing Wealth Inequality Exponential growth Strategies

Investments grow exponentially, with even minor rate changes leading to substantial differences over time.
Exponential growth leads to wealth inequality, as those starting earlier accumulate more.
Understanding that inequality is a natural result of exponential growth can help avoid risky decisions driven by envy.

New Model Portfolio: "Decent Dividends"

3 implied HN points • 19 Feb 23

💰 Finance Investing Dividends Stocks Portfolio Analysis

New model portfolio 'Decent Dividends' aims to find companies with healthy cash flow and commitment to returning excess cash to shareholders.
The portfolio includes stocks like ABBV, VZ, and EOG that show potential for dividend yield and price appreciation.
Using Theory A allows investors to screen and analyze stocks based on various financial factors for long-term investment decisions.

Why Does Loss Porn all Look the Same?

2 HN points • 26 Feb 23

💰 Finance Investing Options Risk management

Ergodicity explains why repeating risky actions can lead to certain failure.
Asymptotic Death warns that even seemingly harmless actions can eventually lead to significant losses.
To avoid financial disaster, invest wisely and understand the importance of proper bet sizing.

Model Portfolio: ROIC Value

0 implied HN points • 05 Mar 23

💰 Finance Investing Stocks Portfolios Economics

ROIC measures how well a company generates return on invested capital.
Focusing on companies with low Price to Book valuation can be beneficial.
Investing in companies with strong fundamentals and future potential is key.

Volatility Harvesting: A Guide to Non-retarded Degeneracy

0 implied HN points • 02 Apr 23

💰 Finance Investing Volatility Risk management Market Dynamics

When ahead, play conservatively; when behind, play with more volatility
Understanding and utilizing volatility is important for wealth-building strategies
Rebalancing is a key strategy to manage exposure to volatility in an investment portfolio

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Model Portfolio: Smart Alpha

0 implied HN points • 12 Mar 23

💰 Finance Investing Stocks Portfolio Analysis Companies

Smart Alpha is a portfolio strategy that curates stocks for better returns
Promising stocks selected from strong moats and top stock lists are part of Smart Alpha
Stocks like Medtronic, Qualcomm, and Bristol-Myers Squibb are included in the Smart Alpha portfolio

Model Portfolio: Too Big to Fail

0 implied HN points • 19 Mar 23

💰 Finance Investing Stocks Analysis Portfolio Management Financial advice

The FIRE movement recommends dollar cost averaging into low cost index funds like SPY for potential returns of 7-8% annually.
The 'Too Big to Fail' portfolio selects high-quality subset of SP500 companies based on certain criteria for potential outperformance.
Key companies like Adobe, Johnson & Johnson, and Intuit are part of the selected portfolio due to strong financial performance and future growth expectations.

Model Portfolio: Value Momentum

0 implied HN points • 26 Mar 23

Value Momentum portfolio looks for undervalued stocks with decent price momentum.
Value screens search for stocks with potential for future growth, not just cheap prices.
Portfolio filters out stocks with low valuation ratios and selects companies with strong financials and price appreciation over 3 years.