I receive a lot of questions about market capitalization, or "market cap" and how it applies to various asset classes such as stocks, gold, or bitcoin. In particular, transfers between asset classes seem to be a somewhat unintuitive concept, and thus worthy of review and examples. The key reason to understand market capitalization dynamics is … [Read more...]

When it comes to determining a fair value for equities, interest rates are an important variable to consider. As rates rise or fall, they affect the appropriate valuations for different stocks in different ways. This article provides a brief overview of how that works. The Equity Risk Premium Equities are not priced in a vacuum; they are … [Read more...]

Many investors prefer not to hold any individual stocks, and instead enjoy the instant diversification of exchange-traded funds (ETFs). Additionally, even if you do hold individual stocks like me, ETFs are still great for added diversification. I've personally always used a combination of stocks and ETFs in my portfolio, because they complement … [Read more...]

Readers occasionally ask me what I think the best investing books are, or what I recommend reading. The truth is, while I've read a lot of investing books and there are tons of good ones, the most powerful resources I've found are online. Compared to other things I've read, the free writings of billionaire investors have been the most useful. … [Read more...]