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Columns

An entry point for six short reads covering common misconceptions and the first step into the theory

Columns cover, in short units, the points where reading the main text leaves you unsure here, easy to get wrong in practice, or just wanting the entry point to the theory. They are not written to be read end to end from the start — the intended use is to pick up the points you care about after the chapters have given you the frame.

What you'll learn
  • Columns are not a substitute for the main text; they cover the places where judgement gets difficult.
  • They lay out common misunderstandings briefly and connect what the chapters taught to real hesitation.
  • Use the theory columns as an entry point for digging into just what you need, after reading the main text.
  • The natural flow is main text first, then columns, returning to the reference when a term or formula stops you.

When to read these

  • I think I am diversified, but something still worries me
  • I do not know how to read a low P/E or a high dividend yield
  • I am concerned about the risks of monthly-distributing funds
  • I want to know why index funds pay no distributions
  • I am unsure how to view a company that pays no dividend
  • I want to know how the optimisation models differ

The main columns

Does holding both global equities and the S&P 500 give you diversification?
Reading diversification by overlap rather than by the number of funds.
A low P/E or P/B does not necessarily mean cheap
Putting the reason behind a low multiple into words.
What are portfolio optimisation models?
How the roles of mean-variance optimisation and Black-Litterman differ.
Is a company that pays no dividend a bad company?
Judging a company by how it uses its money, not by whether it pays a dividend.
Why do monthly-distributing funds need care?
How distributions appear, and the pitfalls over a long holding period.
Why do so many index funds pay no distributions?
Not that they receive no dividends — they are designed to keep the money working inside the fund.
Use columns to check your thinking, or as an entry point for going deeper

Build the way of thinking in the main text first, then use a column to check a specific hesitation or step into the theory. Going back and forth between the two is easier to follow than starting from a column.

On this page

When to read theseThe main columns