Probability Investing

Independent equity research built around expected value. Rather than projecting cash flows or comparing multiples, each thesis identifies the specific decisions that will determine a stock's price, assigns sourced probabilities to each outcome, and calculates a weighted expected value against the current price.

The process

01

Identify the key decisions

The events that will actually move the price.

02

Source a prior

Prediction markets, options, or base rates. No guessing.

03

Build the outcome tree

Each node combination gets a price target. Probabilities sum to 100%.

04

Calculate expected value

Weighted EV above current price is the buy case.

Try the EV Calculator