The Slow Death of a Controversial Formula

One valuation metric is so popular and powerful that it has changed not just the way financiers operate, but the entire world itself. This formula has caused political controversy and scandal–not bad for some basic algebra. What is this formula and why has it become so controversial?

A Capital Structure Refresher

To understand how the global economy nearly fell into absolute chaos and the earth faced a near apocalyptic disaster in the late 2000s, we need to understand what a debt is. This simple concept–the idea of the capital structure–was behind one of the most dangerous and tumultuous moments in recent history.

Why Portfolio Turnover Matters

Portfolio turnover is a crucial feature of large institutional investment decisions, but as it is relatively unimportant to retail investors it is often overlooked. In reality, large investors must create sophisticated models to understand how portfolio turnover impacts not only their returns, but also their perception to outside investors.