Beta & Relative Risk

We can add the risk-free rate and the equity risk premium to determine how much the market, or an average risk stock, will return. But what if our stock is more or less risky than the market? For that, we …

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The Equity Risk Premium

The Equity Risk Premium is the premium investors charge for investing in the average risk equity over and above a risk-free investment. The ERP is a dynamic number that varies over time due to changes in growth, inflation, and risk. What …

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The Risk-Free Rate

The risk-free rate is a foundational element of investing. It’s the theoretical rate of return you can get investing in something that is guaranteed and has no risk. It’s a reference point in investing as it makes sense to understand …

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Floor & Decor: Decorative Disruption

Founded in 2000, Floor & Decor Holdings is a high-growth, differentiated, multi-channel specialty retailer of hard surface flooring and related accessories. According to their website, they offer the industry’s broadest in-stock assortment of tile, wood, laminate, and natural stone flooring along with …

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Zendesk: Here Comes The Sun

Zendesk is a fast-growing software-as-a-service (SaaS) business that has made a name for itself with small businesses looking for customer support software. I think the market has high hopes for Zendesk yet has still underestimated its “long-tail” potential. It follows …

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