…in their portfolios (using data from the Morningstar Active/Passive Barometer for 12 categories): The firm set up regression models that could test, for example, “if active managers in the large-value…
Search Results for: value
Ed Thorp Interview Highlights
…investments these days, he says, because, “at 85, the marginal value of time is higher and the marginal value of money is lower. These are strong disincentives when I make…
Lessons From a Quantitative Investing Conference
…excellent presentations about which factors work. As many people would expect, they focused on value and momentum, which are the two factors with the most statistical evidence to support them….
Most Read Posts on Validea’s Guru Investor
Below are links to our most popular posts for this week on Validea’s Guru Investor blog. [1] Finding Deep Value Stocks with the Acquirer’s Multiple [2] Highest-Paid CEOs Tend to…
Finding Deep Value Stocks with the Acquirer's Multiple
…what Carlisle calls the Acquirer’s Multiple. The lower the number, the better and more attractive. Enterprise Value = + Market Value of Common Stock + Market value of preferred…
Harvard Lost Billion Dollar Bet on Tomatoes and Sugar
…lost,” the article says, which led to last year’s decision by current endowment chief, N.P. “Narv” Narvekar to write down the value of its global natural resources portfolio by $1.1…
Become an Equity Compounder à la Buffett
…by Morgan Stanley in a 2015 paper titled, “The Equity ‘Compounders’: The Value of Compounding in an Uncertain World.” The paper outlines the firm’s research that showed how “compounders”— companies…
Buying Stocks with Debt Leads to Market Vulnerability
…a “record $642.8 billion against their portfolios” in an effort to participate in stock market gains. But when the market tumbles and the value of stock collateral shrinks, the penalties…
Berkshire Too Big to Beat the Market?
…become. The legendary investor, he points out, has long warned that “size is the enemy of excellence” adding that, for Berkshire, “even a $10 billion deal that doubles in value…
Why Both Sides of the Active vs. Passive Debate Are Right
…points out, factor-based portfolios built using factors like Value, Momentum, or Shareholder Yield have beaten the market by between 2% and 4% per year over the long-term. Even if you…