Monthly Archives: June 2014

A simple derivation of Kelly Bet

While I have searched online quite a bit, I didn’t find a satisfying simple derivation of Kelly Bet formula. So I have worked on it by my own, and it turns out the derivation can be quite simple Assume X … Continue reading

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Kelly Bet explained

There are two reasons for being risk aversion. The first reason is about “Utility Theory”. If you only have $1000, losing $100 is a big deal, but if you have $1,000,000, losing $100 is nothing. So the same amount of … Continue reading

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How Engineers do Business

After studying a lot of Elon Musk and Robert Pera, I found they have a lot of similarities. First, they are both engineers and later started to do business. The way they do business is quite different from traditional business schools. … Continue reading

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The flaw of traditional valuation model

The traditional valuation model, whether it is the model from DCF or wall street’s popular P/E multiple method, requires estimating a fair value of a stock, and either use that value to see the upside potential (potential return of investment), … Continue reading

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Three Barriers for Tesla

Telsa is getting hot these days! People are falling in love with it, and stocks are high-flying too. However, there are quite a few nay-sayers. Some say competitions from i3 will be a serious threat, others say fuel cell cars will … Continue reading

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