
Applied Finance, a thought leader in valuation and portfolio construction, is a true “value” investment management company. Unlike the majority of firms today that focus on low multiples to define “value”, we define value as identifying companies trading below their intrinsic value. Our Valuation Driven® approach forms the foundation of our investment decisions.
Applied Finance is 100% employee owned, with the average tenure of our 10 equity partners being over 18 years. Learn more about Applied Finance.
Today the irony continues, as the intellectual foundations in financial economics that underpinned Bogle’s incredible success are much less robust than they appeared in the early 70’s, yet the push for passive investing is stronger and more fervent than ever. For proactive, process-oriented, intelligent advisors this will create a great opportunity to distinguish yourself from the growing herd of “commodity” advisors who preach little more than fee minimization, rather than alpha generation or negative alpha avoidance. […more]
Quantitative investment strategies have intellectually dominated the financial industry for sixty years. In practice, however, fundamental analysis offers crucial advantages. Therefore, it’s time for the two camps to overcome their differences and work together. […more]
“We’re redefining what value is. The term has been tortured and confused with cheapness.” Mr. Resendes says. In our view, growth and value can coexist and regardless of what a price multiple/cheapness indicator might imply, high multiple companies can be undervalued in terms of their overall valuation. […more]
Having worked with hundreds of investment managers, analysts and advisors over the past 25 years, I know valuation is an interesting topic. Virtually every investment manager and analyst acknowledges its significance, but almost instantaneously begins justifying why they don’t give it much importance in their process. I’ll note that rarely do investment professionals offer as the reason an admission that they have not really devoted the immense time and study required to deeply understand valuation. I’ll provide my perspective on what I will call common myths/misunderstandings, then I’ll turn to a few insights from our Intrinsic Value Database™ and provide our perspective to current market conditions. […more]
Copyright 2021 Applied Finance - Disclaimers: Applied Finance refers to Applied Finance Capital Management and its Affiliated Companies; Applied Finance Group (AFG) and Applied Finance Advisors (AFA).
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