Fixed Costs Explained: Definitions, Formulas and Examples

Fixed costs are a parallel concept to variable costs in corporate finance and business management. Understanding fixed costs allows companies to better forecast their expenses, set prices, and make informed budgeting decisions.   What are Fixed Costs? Fixed costs are expenses that do not change with increases or decreases in a company's production or sales

By |2023-11-20T15:04:19+00:00November 8th, 2023|Investing|Comments Off on Fixed Costs Explained: Definitions, Formulas and Examples

Dividend Coverage Ratio (DCR): Definitions, Formulas, and Examples

Dividend coverage is an important risk metric for equity analysts and investors, spotlighting a company's ability to pay dividends to its shareholders. The dividend coverage ratio (DCR) serves as a crucial metric to gauge how secure a dividend payment. This article calculates the dividend coverage ratio and its interpretation supported by tangible examples and exercises

By |2023-10-23T16:57:15+00:00October 23rd, 2023|Investing|Comments Off on Dividend Coverage Ratio (DCR): Definitions, Formulas, and Examples

Basis Points (BPS) Explained: Definitions and Examples

Basis points (BPS) is the common term for 1/100th of 1 percent or 0.01%.  This unit might not seem worth naming, but in bond markets for example, this is the unit for measuring daily price movements and credit spreads – i.e. the interest rate premium charged to a company because it is a weaker credit

By |2023-10-23T16:57:14+00:00October 23rd, 2023|Investing, Uncategorized|Comments Off on Basis Points (BPS) Explained: Definitions and Examples

Sharpe Ratio Explained: Definitions, Formulas and Examples

The Sharpe Ratio is one of the most popular risk-adjusted return metrics used in investment analysis and corporate finance. It was developed by Nobel laureate William F. Sharpe and helps investors understand the return of an investment compared to its risk. The ratio is useful for corporate finance professionals and investors looking to optimize a

By |2023-10-19T09:36:46+00:00October 9th, 2023|Investing|Comments Off on Sharpe Ratio Explained: Definitions, Formulas and Examples

Picking the Perfect Portfolio Post-Pandemic – Part 2

I wrote the first part of this blog around 8 weeks ago and left you with some food for thought.  Go back and have another quick 5-minute read if you like, but in essence I showed that a (rather spuriously) diversified portfolio that had performed very well for 35 years (1975 to 2010) had

By |2023-10-05T17:11:36+00:00August 5th, 2021|Investing|Comments Off on Picking the Perfect Portfolio Post-Pandemic – Part 2

Adventures in biotech 3

Adventures in biotech 3 - Arix, the next twist in the saga… I’ve written before about what has been an experiment for me in patient capital investing. and my conclusion at the end was to maintain my investment in Arix Bioscience. i.e., Be Patient!   Like all investment cases, there were question marks,

By |2023-10-05T17:03:24+00:00July 13th, 2021|Investing|Comments Off on Adventures in biotech 3

Picking the Perfect Portfolio Post-Pandemic – Part 1

Well, of course, there is no perfect portfolio post-pandemic, but I wanted a bit of alliteration so there it is. The closest we can get to perfection is the optimised portfolio. But optimisation is all about finding the best balance of risk and return for a portfolio of assets – and risk lies in

By |2023-10-05T17:03:31+00:00April 8th, 2021|Investing|Comments Off on Picking the Perfect Portfolio Post-Pandemic – Part 1

The adventure in biotech continues….

What’s next…  When we left off before my judgement seemed to have paid off at great speed! But this just left me with a dilemma, should I cut and run or stay in? To try and get some perspective I had a look at Arix’ portfolio in detail and took a couple of mainstream Biotech

By |2023-10-05T17:04:17+00:00March 24th, 2021|Investing|Comments Off on The adventure in biotech continues….

An adventure in biotech venture capital

We’ve blogged already about looking inside funds and having looked at some mainstream funds like Fundsmith and Tech funds, I thought I’d look at some biotech funds. I must confess a personal interest in this, I‘m an investor in Arix Bioscience (ARIX) and am wondering what to do next: I first invested in Arix

By |2023-10-05T17:04:42+00:00February 12th, 2021|Investing|Comments Off on An adventure in biotech venture capital

How to cook up a storm and bankrupt a hedge fund

From the lockdown baking book of finance… Forget the lockdown sourdough baking challenge that has trended over the last year, we have seen in action this last week how to cook up the perfect storm and nearly bankrupt a hedge fund!  For the home-bakers of finance out there who want some clarity on the

By |2023-10-05T17:04:23+00:00February 4th, 2021|Investing|Comments Off on How to cook up a storm and bankrupt a hedge fund

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