Finance is in a funny place now. Corporate finance operates under the guidance of the NPV Rule. The NPV Rule provides the following guidance to corporate executives: To the extent a corporation sources investment opportunities […more]
Read Here: A market-beating investor on Charles Schwab’s exclusive list of top-tier mutual funds explains why he believes traditional value investing never really worked — and shares his strategy for identifying the best cheap stocks […more]
This article first appeared on RealClearMarkets.com December 10th 2020 A trend among investment managers is to focus on “evidence-based” investing, which boils down to adopting strategies that have strong empirical support and ideally a strong […more]
The themes of this past quarter are certainly difficult to capture in a short write-up. As the COVID-19 virus and its accompanying fears circled the globe with drastic health care system and economic consequences, investors […more]
VALUATION DIVIDEND QUARTERLY REPORT: Q4 2019 Valuation Dividend™ returned 6.52% in 19Q4, vs. 7.41% for its benchmark Russell 1000 Value, on a total return basis. In 2019, the Valuation Dividend returned 24.92%, below the R1000 […more]
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]
On Tuesday August 8, Cisco will announce its quarterly results. While Cisco has been a tremendous investment during the 90’s, the question facing portfolio managers today, is, “What am I paying for in today’s price?” […more]
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