Compound Annual Growth Rate (CAGR)

\begin{equation} \text{CAGR} = \left( \frac{FV}{PV} \right)^{\frac{1}{n}} - 1 \end{equation}

FV is final value PV is present value n is number of years

Compound annual growth rate is a method for evaluating the rate of return on an asset that fluctuates is value over time. It is a smoothed growth rate via a geometric mean.

Internal Rate of Return (IRR)

Bill Ackman’s 8 Principles

  1. Simple and predictable businesses
  2. Free cash flow generative
  3. Dominant market position
  4. Large barriers to entry
  5. High return on capital
  6. Limited exposure to non-controllable extrinsic risks
  7. Strong balance sheet where outside capital is not necessary
  8. Excellent management and good governance



Ex-Dividend date is the date when the stock trades without the dividend value, so if you want the dividend, you must purchase it the day before the ex-dividend date. The record date (date when the shareholder is recorded for dividend) is after the ex-dividend date because the trade is settled “T+1”.


Real Estate

TurboTenant tenant management software

Investors have become major purchasers of homes

In 2021, 25% of homes were purchased by investors. This followed a rising trend since the great recession. Investors target sun belt states with lower regulation and desirable living areas. Despite the idea that these are larger buyers, it is mostly smaller groups with only 3% of purchases made by groups with 10k plus homes2.


Investor Talk. Bill Ackman: 8 Principles to Successful Investing. at (2020).

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