Reverting to the Mean

You have probably heard the phrase “Reverting to the Mean” before, but what does it really mean in the investment world? According to Investopedia, ‘Mean Reversion’ theory suggests that prices and returns eventually move back towards their mean or average. This mean or average can be the historical average of the price or return or […]

Equity Income Investing

An important part of an equity’s return is the annual income it provides. However, in my experience when talking to investors, most people only pay attention to an equity investment’s potential capital gains and ignore the investment’s income. In this post I will provide some historical information and my own opinion why I think this […]