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August 20, 2019

There is a reason you simply don’t just look for the cheapest doctor, unless results and service don’t matter to you.  The same can be said about how your clients view your practice and the products you offer.

In today’s “low fee” environment, prospective clients need to understand what you offer is more about results than your fees.  Similarly, finding stocks that are low in cost relative to last year’s earnings, book value or complex combination thereof (low price to something) is hunting for cheapness.  From a portfolio construction perspective, cheapness has been an acceptable approach for decades, and likely will be again in the future. However, cheapness is not value.  Cheapness works to the extent that enough cheap stocks also happen to have value in excess of their market price at the same time. But there is no reason such overlap must exist.

Please download any files you would like to keep as this page will only be available until the end of Q3 2019

Valuation 50 Factsheet

Valuation Dividend Factsheet

VALUE VERSUS CHEAPNESS

Differentiate Your Practice and Performance:

  • Stand out as an advisor and attract new clients
  • Enhance interactions and communication with existing clients
  • Gain a deeper understanding and insight into the Applied Finance portfolio construction process

Introduction Topics:

• Why Most Active Managers Fail
It is accepted that most active managers fail to add value.  We will review how common accounting disclosures and market volatility are culprits for this behavior.

• Value vs Cheapness
The traditional approaches to finding undervalued stocks use a simple ratio such as P/E or P/B, or a mix of them. These widely available “commodity factors” of identifying cheap stocks come with many shortcomings and have no link to Intrinsic Value.

• Differentiate yourself through the use of our Valuation Equity Strategies.
The Valuation 50 and the Valuation Dividend are both in the top 5% of their category.   We will review the process behind the performance and how the resources these strategies provide can help you stand out as an advisor to attract new clients.