Leverage

LEVERAGE
Nobel Lecture, December 7, 1990
by
MERTON H. MILLER
Graduate School of Business, University of Chicago, Chicago, Illinois, USA

Foundations of Portfolio Theory

FOUNDATIONS OF PORTFOLIO THEORY
Nobel Lecture, December 7, 1990
by
HARRY M. MARKOWITZ
Baruch College, The City University of New York, New York, USA

The Crisis of 2008: Lessons learned, unlearned and reinforced

In an article, posted on his blog, Aswath Damodaran, a famous name in modern corporate finance and valuation and author of many books, comments on how his perception of various market views has evolved after Lehman Brothers filed for bankruptcy protection.

To me #1 is his observation: There is no risk-free asset. Pick up yours.

The Crisis of 2008: Lessons learned, unlearned and reinforced

The Capital Asset Pricing Model

CAPITAL ASSET PRICES WITH AND WITHOUT NEGATIVE HOLDINGS
Nobel Lecture, December 7, 1990
by
WILLIAM F. SHARPE
Stanford University Graduate School of Business, Stanford, California,
USA

Managing Your Own Portfolio

Need a piece of advice on personal portfolio management?

Here is an insightful memo from Arthur Zeikel
to his daughter on Managing Your Own Portfolio.

Arthur is a 20-Year Veteran of Merrill Lynch Asset Management, now retired. He is father of three and grandfather of four and one of the most respected US leaders in asset management. Arthur is also member of the Editorial Board of the Financial Analysts Journal where the memo has been published in the March-April edition in 1994. Now this piece of advice is available on the web site of CFA Institute in their Private Wealth Corner.

Here is an excerpt to let you sense the style of Arthur:

Act.
Make decisions. No amount of informafion can remove all
uncertainty. Have confidence in your moves. Better to be approximately right
than precisely wrong.
Take the long view.
Don't panic under short-term transitory developments. Stick to your plan. Prevent emotion from overtaking reason. Market timing generally doesn't work. Recognize the rhythm of events.
Remember the value of common sense.
No system works all of the time. History is a guide, not atemplate.

Download the letter here.