K-Ratio

Vastly different from the K-Cup ratio, now pioneered by Keurig.

Some investments are boom or bust. Buy an experimental biotech stock early in their development process and you might make a 10x return if their product eventually gets to market...or you might lose everything if it turns out that their product causes people's eyebrow hair to fall out.

Other investments are more steady-eddy. Consistent returns and not much bouncing around. Blue chip stocks, utilities..that sort of thing.

The K-ratio measures what kind of stock you’re dealing with. The figure measures the consistency of return. So...not just the total return (the amount you are going to earn from the investment), but how consistent the return was over time.