3 June 2022

Stewart Group

Crypto operates on the greater fool theory. Because it has little real world use currently, investors are buying it on the premise that they will be able to find someone down the line willing to buy it off them – the greater fool, or some optimist who believes they have found their own golden ticket.

Adviser Alpha

Stewart Group

9 December 2019

Financial Planning, Investors

Defining Adviser Alpha

Stewart Group

9 December 2019

Financial Planning, Investors

Alpha. In an investment sense it means how much better your returns were against a specific benchmark. For example, if you were holding an NZX 50 fund and it returned 12% while the S&P/NZX 50 portfolio index returned 10%, your alpha is 2%. This can also work in reverse. Your fund returns 8% while the index returned 10%, well you’ve got negative alpha of 2%.