Value Investing Research

//Value Investing Research

Value Investing

Warren Buffett On LTCM, Blind Spots, Leverage, and Unnecessary Risk

By | 2017-08-18T16:52:48+00:00 September 8th, 2015|Value Investing Research|

In 2007, Warren Buffett gave an extended talk to a group of MBA students at the University of Florida.   Below are some highlights: Question: You were rumored to be one of the rescue buyers [...]

Expanding the Efficient Frontier with Value and Momentum Strategies

By | 2017-08-18T17:05:19+00:00 December 9th, 2015|Research Insights, Value Investing Research, Momentum Investing Research, Tactical Asset Allocation Research, $SPY|

Awww...modern portfolio theory...that feel-good construct I teach to all of my graduate-level finance students each year. Simply input 1) a vector of expected returns and 2) a covariance matrix into your computer, and voilà, you [...]

How Do Dividend Paying Stocks Affect the Value Investing Anomaly?

By | 2017-08-18T17:03:41+00:00 October 5th, 2015|Value Investing Research, $vlue, $iwd|

Meb Faber tweeted an interesting question related to taxes, dividend payers, and the value premium the other day. I'll summarize the heart of the question: How do dividend payers affect the value premium? Instead of pontificating on the [...]

Value Investing: The Pain Train has Arrived and it Sucks.

By | 2017-08-18T16:53:44+00:00 October 12th, 2015|Value Investing Research|

A few months ago we highlighted a surprising result: cheap high-quality stocks were getting crushed by expensive junk stocks. The spread at the end of June was around 18%. Here is the chart from the old [...]

Ben Graham Would be Proud: Fundamental Analysis Works

By | 2017-08-18T17:09:26+00:00 October 15th, 2015|Value Investing Research|

Here is an interesting working paper on the use of fundamental analysis in stock selection. The authors take a dynamic regression "machine learning-esque" approach to building out statistical fair-value Ben Graham  and David Dodd would be proud. [...]

Value Investing Requires Patience…a LOT of Patience–Ask Cliff Asness

By | 2017-08-18T16:53:51+00:00 December 10th, 2015|Value Investing Research|

Value investing was a lot easier in 2012 and 2013 when our  value approach beat the market by a substantial margin and we had a reasonable edge on other active value players. But now that we [...]

Why I Don’t Invest in Momentum Stocks…Yet!

By | 2017-08-18T16:52:12+00:00 October 30th, 2015|Guest Posts, Value Investing Research, Momentum Investing Research|

Confirmation bias is the tendency to cling to research/ideas that confirm with what you already believe. This behavioral bias leads to overconfidence and can impede our search for the truth. So in the spirit of healthy debate and [...]

DIY Asset Allocation Weights: November 2015

By | 2017-08-18T17:06:32+00:00 November 6th, 2015|Research Insights, Tool Updates, Value Investing Research, Momentum Investing Research|

Do-It-Yourself tactical asset allocation weights are posted. Create a free account here if you want to access the site directly. Sign in here if you already have a free account. The results are hypothetical results and are [...]

David Dreman on Value Investing and Investor Overreaction

By | 2017-08-18T17:07:00+00:00 November 17th, 2015|Value Investing Research|

David Dreman is a personal hero of mine. Years ago, I stumbled on his book, “Psychology and the Stock Market: Investment Strategy Beyond Random Walk,” which was originally published in 1977. It had a huge [...]

International Evidence for our favorite Value metric: Enterprise Multiples

By | 2017-08-18T17:02:53+00:00 November 24th, 2015|Research Insights, Value Investing Research|

The Enterprise Multiple Investment Strategy: International Evidence Walkshäusl and Lobe A version of the paper can be found here. Want a summary of academic papers with alpha? Check out our Academic Research Recap Category. Abstract: The enterprise [...]

Value Investing: Accruals, Cash Flows, and Operating Profitability

By | 2017-08-18T16:53:47+00:00 January 14th, 2016|Research Insights, Value Investing Research|

Accruals, Cash Flows, and Operating Profitability in the Cross Section of Stock Returns Ball, Gerakos, Linnainmaa and Nikolaev A version of the paper can be found here. Want a summary of academic papers with alpha? Check [...]