Investing in Both Big & Small Companies: Taking a Look at Market-Cap

By Justin J. Carbonneau (@jjcarbonneau) — Jeff Bezos is now the richest man in the world. He’s achieved this vaunted status is because of the price of the stock and the corresponding value investors are assigning to the company he founded, Amazon, in the public markets, not because of Amazon’s profitability, or the income being generated by the company, is flowing directly in Bezos’ pockets. A company’s market capitalization, also sometimes referred to as “market… Read More

Validea Gets Under the Hood: P/E Ratios

By Justin J. Carbonneau (@jjcarbonneau) —  In our book, “The Guru Investor: How to Beat the Market Using History’s Best Investment Strategies”, we called Benjamin Graham the “Granddaddy of the Gurus” given his track record and influence on other value investors, including Warren Buffett, Mario Gabelli and many others. If Graham was the Granddaddy of the Gurus then I think the Price-to-Earnings ratio (or P/E for short), a ratio utilized by Graham, is probably the… Read More

Factor Strategy Focus – Benjamin Graham

By Jack Forehand — When we started following guru-based models, the term factor investing didn’t exist. We just wanted to find a way to outperform the market, and we realized that only a very small group of investors had successfully done that – and we certainly weren’t in that group. So we decided to follow investors who had long-term records of beating the market and whose strategies could be quantified. We read their books and… Read More