…price in relation to book value, which was tested by a finance professor at the Yale School of Management for the period between 1967 and 1984. Data showed that stocks…
Search Results for: value
Investing Principles: What Has Worked
…criteria the firm applies when evaluating shares for purchase: Low Price in Relation to Asset Value: Stocks priced at less than book value are “purchased on the assumption that, in…
Graham and Buffett Back-to-School Picks
…fashion apparel, cosmetics and home furnishings, earns a perfect score under the value guru Benjamin Graham-based investment strategy partly due to its healthy revenue stream (sales of $6.6 billion). Foot…
Hulbert Highlights Indicators of an Overvalued Market
…ratio of 25.2 is higher than 89% of past market peaks. While Hulbert believes that “valuation indicators are not helpful guides to the market’s shorter-term direction” he argues, “value eventually…
Active vs. Passive Results Linked to Market Cycles
…when value investing is favored. “When very high-priced stocks are running, passive investing wins because active managers tend to shun the higher valuations.” He warns that while passive investing has…
Fundamentally Solid Value Picks in the Spirit of Graham and Doddsville
In his revered 1984 speech at Columbia Business School, Warren Buffett referred to the strong track records of a group of prominent value investors as follows: “A concentration of…
Blending Strategies to Reduce Volatility and Boost Results
…Momentum Investor portfolio has returned 192.2% and our Value Investor portfolio has returned 238.3% (outperforming the market during that time by 78.2% and 199.9%, respectively). Using these two strategies, the…
"Quantimental" Fund Management Raises Eyebrows
…factors such as value, momentum and volatility) into the management of funds that have been primarily fundamentally driven (focused on more traditional metrics related to earnings, profitability, debt levels and…
GMO: Don't Bail on Hedge Funds
…sustainable because they “represent an increase in the present value of an asset without any increase to the cash flows to the asset class.” So while the present values have…
Morningstar's Ben Johnson on Multifactor ETFs
…beta or value stocks. His review of the historical performance of different factor ETFs shows that, over a nearly 30-year period, many outperformed market-cap weighted global indices. He pointed out,…