Intangible Assets Are Affecting Investment Returns

A recent article in the Financial Analysts Journal suggests that, even if investors were perfectly informed, could accurately forecast corporate earnings and invest at optimal times, their excess returns would be lower than expected due in large part to the treatment of intangible assets. This according to a recent article in The Economist. The authors argue that hypothetical returns have been falling because of the rising importance of intangible investments (such as trademarks and software… Read More