The Price to Book Ratio: definition, calculation and backtest

This post is part 10 of 10 in the series What works in Zurich / Paris

The Price to Book Ratio (P/B) is a fundamental financial indicator that allows investors to evaluate a company's market value relative to its book value. This ratio is calculated by dividing the stock price by the book value per share. A P/B ratio below 1 may suggest undervaluation, while a high ratio may indicate potential overvaluation.

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The permanent portfolio: Harry Browne's strategy

This post is part 6 of 8 in the series The wallet war

The Permanent Portfolio, conceived by Harry Browne in the 1970s, is an investment strategy designed to maintain long-term stability. This approach is based on a balanced asset allocation between four main categories: 25% in equities, 25% in long-term bonds, 25% in gold and 25% in cash. This allocation is designed to perform over different economic cycles.

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