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A Challenging Industry – Autos

July 9, 2020 Paul Blinn

Sometimes knowing what to avoid is more important than ascertaining the exact best choice. Not getting killed can be a good enough strategy on its own. The recent sell off and rally have contained some […more]

Reclaiming Value & Restoring its Place in Active Management

January 15, 2020 Applied Finance

The insights delivered by this study are truly fascinating.  On one hand, the evidence that price multiples are incomplete in forming a definition of value is obvious, and this should align with intuition.  If broader market participants heed this advice, this study will have been a noble effort to improve the flow of accounting information and analyst forecasts into market prices.  On the other hand, there has never been obvious justification for measures of cheapness to define value in the first place.  Many investors simply use these factors out of convenience or tradition, while many others invest in products built upon them with little understanding of the classification error they introduce.  […more]