Value Investing: Never Buy Expensive Stocks. Period.
We did a recent internal simulation study on the performance of cheap and expensive stocks based on a variety of valuation metrics. We looked at [...]
Gross Profits isn’t a Silver Bullet for Valuation Measurement!
Deflating Profitability Ball, Gerakos, Linnainmaa, and NikolaevA version of the paper can be found here.Want a summary of academic papers with alpha? Check out our Academic Research [...]
Shareholder Yield: Do longer-term calculations enhance performance?
Wes and I have a recent paper (found here) which examines a more complete measure of shareholder yield (dividends, net stock repurchases, and debt reduction). Here [...]
Can Market Valuations Be Effective Market-Timing Signals?
We know that valuation metrics such as the CAPE, or Shiller P/E, ratio are correlated with long-term returns (notice we didn't say "predict" long-term returns--that is [...]
Global Market Valuations based on EBIT/TEV
We ran some numbers on the large liquid universe of stocks (>2B USD) traded in EAFE countries. In total there are 1086 names in the [...]
Post Earnings Announcement Drift and Value/Growth Anomaly
When Two Anomalies Meet: The Post – Earnings Announcement Drift and the Value – Glamour Anomaly Yan and Zhao A version of the paper can [...]
Growth Beats Value…but with a lot of help!
When Growth Beats Value: Removing Tail Risk From Global Equity Momentum Strategies Clare, Seaton, Smith, and Thomas A version of the paper can be found here. [...]
P/E Performance in Australia and New Zealand
The Predictive Ability of P/E Ratio: Evidence from Australia and New Zealand Basu and O'Shea A version of the paper can be found here. Want a [...]
Does Value Investing Work in the Technology Sector?
A recent blog post suggests that value investing in the tech sector is a waste of time. The article tells a compelling story and argues for 2 points: Successful tech stock investing is done when the stocks are dear, not when they are cheap. Tech companies should not get credit for huge piles of cash on their balance sheets. The author then makes the claim that you can't make big money in cheap tech stocks and buying cheap tech doesn't work. We thought the blog post was thought-provoking and it inspired us to conduct a quick empirical analysis to ascertain if there was any truth to the claims.
Systematically Executing a Value Investment Philosophy
https://www.nantucketproject.com/wes-gray-from-concept-to-reality The story of our quantitative value algorithm as told at the Nantucket Project: [youtube url="http://youtu.be/3I9y2D5-Ol4"]
Formula Investing SMA Transition
Dear Readers: Joel Greenblatt has attracted a lot of followers based on the success of his book, “The Little Book that Beats the Market,” and [...]
Investment Cruise with CFA and Wiley Authors
Beautiful weather, sun, ocean, and...my ugly mug chatting about finance with some fellow authors--including my fellow blogger, Meb! A fun event in the making... Details below. [...]
Black Friday, Retailers and the Availability Heuristic
The term “Black Friday” has been used for many years to describe the day after Thanksgiving, which for retailers marks the beginning of the holiday [...]
QE Forever: Short Treasuries? But what about Japan?
QE forever certainly makes me think that I should put my entire net worth (all $5 dollars in my piggy bank) into gold bars. Q: [...]
3rd Edition of Quantitative Value for $29.99–100 copies only
I've never really seen "eye to eye" with our publisher on the cost of our Quantitative Value book. I want to get the work out [...]
Quantitative Value Cracks the Amazon Top 10 Investing Books.
Looking good. Thanks for all the support from all our readers out there. We get comments and questions everyday--keep them coming. Purchase here Thanks to http://www.stansberryresearch.com/dailywealth/2467/guide-for-selling-stocks-from-the-father-of-value-investing for [...]
Value Versus Growth Flashback: Microsoft and Wal-Mart were High-Flying Growth Stocks?
Jack and I were reading a classic academic paper on value investing the other day: Contrarian Investment Extrapolation and Risk. In this paper Lakonishok, Schleifer [...]
Apple moves Higher–Quant Value Pleasure!
On July 19th we highlighted the quant value pain associated with Microsoft. Today we have some good news from a quantitative value type stock--Apple! A low [...]
Aleph Blog Book Review
We post all reviews we come across on the web (let us know if we are missing any): http://hlb.wax.mybluehost.me/reviews/ A recent review caught my attention: [...]
Quantitative Value Video Snippet
[youtube url="http://youtu.be/lG_064_XvfY"]