Research has shown that value investing needs to change. Our economy has transitioned from one dominated by tangible assets like buildings and equipment to one dominated by intangible assets such…
Tag: Intangible Assets
The Importance of Intangible Assets
By Jack Forehand, CFA, CFP® (@practicalquant) — I started out my career as a Price/Book guy. It certainly wasn’t the only value factor I used, but I would defend it when it came…
The Impact of Intangible Assets on Value Investing (Ep. 68)
Our economy is changing. Gone are the days where the biggest companies require substantial physical assets to operate and grow their businesses. Most of the companies that dominate our economy…
Are Intangibles to Blame for Value’s Pain?
A recent CFA Institute article debates the notion that the value factor’s long stretch of poor performance is due primarily to the increase in the percentage of intangible assets as…
The Assets We Can’t See
By Jack Forehand, CFA (@practicalquant) There has been a major change in our economy going on for a long time now. The days where the largest firms make physical things…
Monopolies, Intangible Assets and the Disruptive Economy with Kai Wu of Sparkline Capital (Ep. 53)
Our economy is changing. The largest, most successful companies in the world no longer require substantial tangible assets to operate their businesses. The businesses that are disrupting our world and…
Capitalism is Ruling Without Capital
The stock market is “increasingly populated by intangible companies,” according to a recent article in Bloomberg that discusses the trend’s implications. “Some 40% of public stocks quoted in the U.S.…
Five Methods for Intangible Asset Valuation
An article in CFA Institute argues that intangible assets (non-physical assets such as trademarks, patents, etc.) are “increasingly critical to corporate value, yet current accounting standards make it difficult to…
Franchise Quality Score: A Method for Evaluating Intangibles
The lofty prices of certain stocks (i.e. FAANG) present a challenge for value investors, according to an August article in CFA Institute that delves into the subject of intangible assets…
Intangible Assets Are Affecting Investment Returns
A recent article in the Financial Analysts Journal suggests that, even if investors were perfectly informed, could accurately forecast corporate earnings and invest at optimal times, their excess returns would…