2 docs tagged with "finance"

Cost-Benefit Analysis (CBA) is a systematic decision-making framework that quantifies all relevant costs and benefits of a course of action — including indirect and intangible ones — and compares them to determine net value. It disciplines decision-making by forcing explicit identification of trade-offs rather than allowing them to remain implicit. Widely used in public policy, investment appraisal, project selection, and operational decisions at all levels.

A rigorous framework for making investment decisions — whether in public equities, private companies, real estate, or your own business — using Expected Value, Circle of Competence, and Margin of Safety. Covers how to evaluate an opportunity, size a position, and know when you should not be making the investment at all.