While Warren Buffett’s track record is appealing to large private equity firms, his buy-and-hold strategy (averaging 10-20 years rather than the hedge fund industry norm of 3-5 years) can be…
Author: Validea
Bloomberg's Kaissar Weighs-In on Morningstar Fund Ratings
In a recent article, Bloomberg columnist Nir Kaissar challenges the rationale of a Wall Street Journal article suggesting that Morningstar mutual fund ratings lead investors to “assume erroneously” how those…
Shiller: Another Bear Market Could Happen
The kind of panic that ensure thirty years ago, on October 19th, 1987, could happen again. This according to Yale professor Robert Shiller in his recent New York Times article. While…
Pricey Stock Market May Bode Well for Long Term
The “price stock market and skinny bond yields of 2017” could pay off in the future, according to a recent Bloomberg article. The article says that asset prices tend to be…
Wording in Press Affects Investor Expectations
A recent issue of the Journal of Economic Behavior & Organization offers insights as to how wording in the financial press affects investor expectations. Researchers conducted a study asking participants…
Investors Should Expect Rougher Times Ahead
In a recent Barron’s article in which he describes the current U.S. economic expansion as an “Indian summer”, JPMorgan chief strategist David Kelly says that investors should guard against being…
Klarman Warns that Investors are Ignoring Risks
In a private letter to clients, Baupost Group CEO Seth Klarman suggests that, instead of asking themselves why they should sell in today’s market, they should ask whether they can…
Some Thoughts On Improving the Predictive Value of Morningstar's Ratings
By Jack M. Forehand (@practicalquant) — The Wall Street Journal article last week that called into question the predictive value of Morningstar star ratings has caused a lot of debate…
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…
Momentum Investing Works Until it Doesn’t
A recent article in InvestmentNews highlights how momentum investing—buying shares of whatever is rising the fastest and selling when these stocks “lose steam”–has been performing well of late. However, the…