…edition using Price/Sales as your primary value metric and by the 4th edition had moved to a value composite. I was wondering if you could talk a little about how…
Search Results for: value
Long Term Compounding Using Low Volatility & Other Fundamental Factors
…with lower volatility. What’s more, when you apply a volatility factor to things like size and value you actually get additional levels of alpha generation. So the lower the risk,…
Finding Industries that Present Investment Opportunities
A recent article in Forbes discusses strategies for finding investment opportunities in out-of-favor industries and avoiding value traps. Here are some highlights from the article: Investors can avoid falling into…
Five Questions: The Importance of Narratives with Ben Hunt
…about the concept of base rates. Value investing has been underperforming for a really long time, and every value investor (myself included) tends to look to the past for the…
The Mechanics of Value Investing
…details to consider when building or analyzing any value strategy. Defining Value But first, I think it is important to define value. When I look at strategies that are referred…
Valuation Metrics and Spreads Can Inform Future Returns
…spread in valuations between growth and value stocks, the larger the future value premium is likely to be.” The relationship, the article reports, holds across asset classes as well as…
Five Questions: An Academic Look at Factors with Lu Zhang
…value as risk factors, and their 5-factor model further built upon that by adding profitability and investment. In your work, you eliminated the value and momentum factors and found that…
Manager Says Stock Price Gap Signals Opportunity
…more upside to be had, arguing that both the Stoxx Europe 600 Index and the MSCI Europe Value Index are trading below long-term averages (on a price-earnings basis). The article…
Expanding the Opportunity Set with Shareholder Yield
…yield as one criteria within a larger variable set. For example, our James O’Shaughnessy based Value Composite model looks at five distinct value criteria (Price/Book, Price/Sales, Price/Earnings, Price/Cash Flow, EV/EBITDA…
Five Questions: A Wealth Manager’s View of Factors with Michael Batnick
…evidence strongly supports value investing, and previous extended periods of underperformance were all followed by a reversal. But some argue that quantitative investing and big data have made value much…