Even though it’s not a widely known term, the Kelly Criterion is a very unique and important tool for value investors who want to generate the best returns. Even if you’re not aware of it, you’re likely to be using a version of this tool in your portfolio. The Kelly criterion is a tool you can use to help decide how much weight you should give each position in a portfolio. Invented by John Kelly, who was originally employed at Bell Labs, the formula enables you to calculate how much of your bankroll you should bet on an opportunity depending on…
The Kelly Criterion And Value Investing
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk