Episode 123: How We Value Risk vs. Reward
No interview this week, so Ryan and I did a topic ourselves: evaluating risk vs. reward for a potential investment. Some scenarios/criteria for identifying potential rewards (i.e. potential upside): hidden assets, operating leverage, and multiple expansion. Some scenarios for potential risks we talked about: multiple compression and fads/gimmick products.
News stories we covered this week: Traeger Grills going public, the Defense Department’s new cloud deal, Richard Branson going to space, and Tik Tok banning cryptocurrency promoters.
Our Tuesday show is sponsored by 7investing. Looking to empower your financial future? Use our link or enter promo code “CCM” at check-out to get $10 off your first month of the service.
Disclosure: The author and podcast guests are not your financial advisors. Ryan Henderson and Brett Schafer are general partners and portfolio managers at Arch Capital. Clients of Arch Capital may hold securities discussed on this show.