By Jack Forehand, CFA (@practicalquant)The long-term evidence to support factor investing is compelling. Academic work has shown that factors like value and momentum have produced an excess return relative to…
Tag: Practical Quant
The Importance of the Sector Story
When we look at the past in investing, all of us have a tendency to want to find the simplest explanations for the things that occurred. But beneath the surface,…
The Elusive Definition of Risk
That lesson has not customarily been taught in business schools, where volatility is almost universally used as a proxy for risk. Though this pedagogic assumption makes for easy teaching, it…
The Biggest Mistake of My Career, And What l Learned From It
By Jack Forehand (@practicalquant) It was a cold October day in 2016. I woke up at 3 AM to fly to see the biggest institutional client we had in our…
Lessons From Our Most Read Five Questions Interviews
By Jack Forehand (@practicalquant) We have just passed the one-year mark of our Five Questions interview series. When we first launched the series, I wasn’t sure how it would go.…
The Perils of Market Forecasting
By Jack Forehand (@practicalquant) — It’s that time of year again. The time of year where all the market experts make their 2020 predictions. You will see countless forecasts about…
The Danger of Overscrutinizing Out of Favor Investment Metrics
By Jack Forehand (@practicalquant) — No investing factor has been maligned more than the Price/Book in recent years. In a period where value in general has performed very poorly, the Price/Book…
Five Questions: The Man Who Solved the Market with Gregory Zuckerman
If I asked you to name the greatest investor of all time, you would likely immediately think of Warren Buffett. And there is good reason for that. Buffett has put…
A Framework to Evaluate Value Strategies
By Jack Forehand, CFA (@practicalquant) Earlier this year, I wrote about the mechanics of value investing and the many decisions that go into building value portfolios. Many investors believe that…
The Facts About Buybacks
By Jack Forehand, CFA (@practicalquant) There might not be a more controversial topic right now in investing than stock buybacks. The debate over buybacks, which started out as a debate…