…and probabilities is essential.” Understand value. While many things have changed over the years, one concept that hasn’t changed is that “the present value of future free cash flow determines…
Search Results for: value
Are Index Funds Passive Aggressive?
…to market distortions where funds will “move into or out of shares because of their status in key indexes, instead of anything to do with the securities’ underlying value.” …
Debating with the Oracle of Omaha
…stocks, says Merriman, are the better option for investors who want to take advantage of “boring” value stocks. Look for top-brand companies that control prices. Buffett sings the praises of…
Forget Asset Allocation, says Glenmede’s CEO
…weighting based on market value “without regard to valuation.” He says this results in overvaluation of “fashionable” stocks and can create market inefficiencies. In particular, he refers to the tech…
The Forecaster and the Dart-Throwing Chimp
…“you’re probably not going to do a very good job predicting what the value of Google is going to be next week on the New York Stock Exchange.” Tetlock argues…
In Factor Investing, Integration is a Plus
…factors (eg. building one portfolio for value and a second for momentum and then combining the two), better results can be obtained through an “integrated” approach whereby investors would build…
Can Active Investing Still Generate Alpha?
…that instead of “beating the market” per se, systematic investing on the basis of factors such as value, size, and profitability can lead to greater overall returns. Specifically, they show…
Oakmark’s Bill Nygren Talks Value
“Value is relative to something else,” says Bill Nygren when asked where to find it in today’s market. Manager of the Oakmark Select Fund since 1996, Nygren offers his perspective…
Using Amazon Stars to Find Market Stars
…consumer goods. When consumers view certain products favorably, it indicates higher product quality and value which predicts higher cash flows and, in turn, higher stock prices.” Among other things, the…
Looking for Value in Un-Love Small Cap Stocks
Small-cap fund performance has taken a lot of heat lately, and the “small-cap premium” has been called into question. In a recent article for Nasdaq, John Reese, CEO of Validea,…