📕Glossary

Terms that are useful for investors.

Asymetric Risk - Situations where risk and reward are grossly disproportionate.

• Positive Asymmetric Risk is where the risk is known and the reward is potentially extreme.

• Negative Asymmetric Risk is where the risk of loss is dramatic while the reward is uninspiring.

Antifragile - Possessing qualities of something that gets stronger the more it is attacked.

Appreciate - Increasing in value over time. Stocks and real estate often appreciate in value.

Black Swan Event: Something extreme that happened that was completely unexpected.

CAGR - Compound Annual Growth Rate

Depreciate - Decreasing in value over time. Automobiles and computers fall in value over time.

Deflation - Falling prices caused by a lack of demand or excessive supply.

EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization.

Inflation - Increasing prices potentially caused by a variety of factors.

Investment Thesis - "An investment thesis is a written document that recommends a new investment, based on research and analysis of its potential for profit."

LTV - Life Time Value. The total expected revenue from a customer for as long as the customer continues to use the company's products or services.

Paper Loss - An unrealized loss visible only on portfolio websites and account statements.

Realized Loss - A realized loss that is the result of an investment sold for less than it was purchased.

Risk - The potential for loss, whether temporary or permanent.

TA - Technical analysis. Evaluating past performance of assets using charts and other data to understand what happened in the past and what probable outcomes exist in the future.

Valuation - Ways in which the value of things, whether having a physical presence or not, are determined.

Volatility - The fluctuation of prices of assets over time.

YE[YYYY] - Year End with [YYYY] representing a four digit Year.

YOLO - You Only Live Once.

YOY - Year Over Year, used to show changes from last year to this year.