…their value. His thinking goes that with no structural or economic justification for the factor’s advance, it’s destined to revert to its mean and burn millions of investors in the…
Search Results for: value
Former Franklin Templeton CEO Says Stick to your Discipline
…company may not represent good value: Reed uses the example of Quaker Oats Co.–before it was acquired by Pepsico, he was asked why it wasn’t in his portfolio. He said…
Value-Based Picks for the Trump Rally
…however, that whether or not the market is overbought “shouldn’t matter to a true value investor.” Reese discusses the strategy of value investing legend John Neff, who led the Windsor…
Cash Flows Don't Lie
…stock’s future value. This method measures operating cash inflows and outflows as opposed to an “indirect method of reporting cash flow, including noncash operating items they include in net income,…
Buyer Beware of Companies Carrying Heavy Debt Loads
…ones and the market, losing about half their value, while the Standard & Poor’s 500 index fell 37%.” Jayme Wiggins of the Intrepid Endurance fund points out that stretched valuations…
Contrarian Picks Based on David Dreman's Philosophy
…their share prices to four different financial variables that gauge the strength of the underlying business: earnings, cash flow, book value and dividend yield. Reese describes the findings of studies…
On Becoming Warren Buffett and Some Fat-Pitch Picks
…and quotes from the film that reinforce what we already know about the Oracle’s staunch, level-headed approach to value investing. Using his stock screening model fashioned after the Buffett philosophy,…
Why Value Investors Need "Mental Toughness"
…performance of value vs. growth over the last few years. According to Ben Johnson, co-author of the book Strategic Value Investing, “Successful value investing requires independent thought and going against…
The Market Valuation Snapshot
…calculated by dividing the market value of total assets by their replacement costs. This level indicates that the stock’s value is higher than the asset replacement costs, also pointing to…
Stop Losses are a Good Idea
…without the potentially harmful influence of the ‘endowment effect’”— assigning a higher value to assets we own compared to those we don’t. “Of course,” Klement argues, “it could well be…