Top Geeky Quant Blogs
Quant Blogs Check Out List Last week, we shared bunch lists of Quant Blogs from TheWholeStreet.com (Click here). The full list contains over 100 blogs, [...]
The Quantitative Value Investing Philosophy
Benjamin Graham, who first established the idea of purchasing stocks at a discount to their intrinsic value more than 80 years ago, is known today as the father of value investing. Since Graham’s time, academic research has shown that low price to fundamentals stocks have historically outperformed the market. In the investing world, Graham’s most famous student, Warren Buffett, has inspired legions of investors to adopt the value philosophy. Despite the widespread knowledge that value investing generates higher returns over the long-haul, value-based strategies continue to outperform the market. How is this possible? The answer relates to a fundamental truth: human beings behave irrationally. We are influenced by an evolutionary history that preserved traits fitted for keeping us alive in the jungle, not for optimizing our portfolio decision-making ability. While we will never eliminate our subconscious biases, we can minimize their effects by employing quantitative tools.
How to calculate 3-factor (Fama-French) and 1-factor (CAPM) alpha
We've had a few questions related to 3-Factor Fama-French and 1-Factor (CAPM) alpha calculations recently (maybe it is midterm season?). Here is a deeper dive [...]
Complexity Doesn’t Equal Value: Morningstar Video
A short discussion I had with Sam Lee over at Morningstar. Transcript below: Sam Lee: Hi, I'm Sam Lee, ETF strategist with Morningstar, here at theMorningstar [...]
Beta Launch of our New Tools
We've been buried in ETF operations the past 6 months, but we are finally getting around to launching out new set of tools. Most of [...]
Morningstar 2014 ETF Conference Slides
Many of you have asked for the slides I presented at the ETF conference on tactical asset allocation. Note, the 2nd slide is an animation [...]
Introduction to Finance: Class 8
Introduction to Finance: Class 8 Risks & Returns What are risks & returns? When it comes to financial matters, we all know what risk is [...]
Introduction to Finance: Class 7
Introduction to Finance: Class 7 Lessons from Capital Market History What is a capital market? Capital markets channel savings and investment between suppliers of capital such [...]
Introduction to Finance: Class 6
Introduction to Finance: Class 6 Making Capital Investment Decisions Where to begin? Capital investment decisions also can be called ‘capital budgeting’ in financial terms. Capital [...]
Introduction to Finance: Class 5
Introduction to Finance: Class 5 Net Present Value & Other Investment Criteria What is net present value? The difference between the present value of cash [...]
Introduction to Finance: Class 4
Introduction to Finance: Class 4 Stock Valuation What is stock valuation? There are many ways to determine the value or worth of a stock (refamiliarize [...]
Introduction to Finance: Class 3
Introduction to Finance: Class 3 Bonds & Interest Rates What are bonds? What is an interest rate? Check this out: Introduction to Bonds Video Interest [...]
Introduction to Finance: Class 2
Introduction to Finance: Class 2 Discounted Cash Flow Valuation What is a discounted cash flow valuation? Discounted cash flow (DCF) is a valuation method used [...]
Top 10 Reasons Financial Advisors Stink
We were sitting around the office today discussing the type of financial advisor we'd like to be. Then it struck us. What would Charlie Munger [...]
Summer–A Time to Learn!
Readers: We exist to empower investors through education. Typically, we cover source academic literature and other topics that require an intermediate to advanced level of [...]
Introduction to Finance: Class 1
Introduction to Finance: Class 1 Time Value of Money What is the time value of money? Simply put, the value of money is dependent upon [...]
Why ETFs are more tax-efficient than mutual funds
The ETF structure is often regarded as being "tax-efficient." However, many investors -- even sophisticated professionals -- often blow off the benefits of the ETF [...]
Maximum Drawdown Excel VBA Code
TKA readers, I've been thinking a lot about drawdowns recently. In fact, I was thinking so hard about them I wrote a paper with Jack [...]
Merry Christmas with Mean-Variance-Analysis
We are going to try and post a video once every month. The intent is to democratize quant and train our audience to harness basic [...]
How to calculate 3-factor (Fama-French) and 1-factor (CAPM) alpha
Wow, Turnkey Analyst and I have been buried at Turnkey Analyst working on a variety of research projects and hanging out with our families over [...]