While for many value investors, a low price-to-book ratio has long been synonymous with opportunity, a recent article by Bloomberg columnist Nir Kaissar argues that in recent years it has…
Tag: Price-to-Book
Excess Returns, Ep. 32: Is the Price/Book Ratio Dead?
The Price/Book ratio has probably been the most important valuation ratio of the past century. If you look at the academic research that supports value investing, you won’t find any…
Is the Price/Book Ratio Dead?
By Jack Forehand, CFA The Price/Book has probably been the most important valuation ratio of the past century. If you look at the academic research that supports value investing, you won’t…
The Danger of Overscrutinizing Out of Favor Investment Metrics
By Jack Forehand (@practicalquant) — No investing factor has been maligned more than the Price/Book in recent years. In a period where value in general has performed very poorly, the Price/Book…
Five More Questions: Value Investing with Tobias Carlisle
This is Part II of my interview with Tobias Carlisle of the Acquirer’s funds, which just released its first ETF, the Acquirer’s ETF (ZIG) earlier this year. In Part I,…
Is Traditional Value Investing in the Danger Zone?
A recent Forbes article suggests that true value investing requires a comprehensive approach to analyzing companies, not just a reliance on the price-to-book value. The article cites two comments made…
The Most Hated (And Most Loved) Investing Factor
By Jack M. Forehand (@practicalquant) — Factor investing requires a lot of patience. Despite the fact that research shows that many factors can produce outperformance over long periods of time,…
Book Value - A Buffett Favorite, But Far From Perfect
Article Summary Warren Buffett reports Berkshire’s book value in Berkshire’s Annual Letter, but Buffett admits it is not perfect in determining the value of a firm. The price-to-book ratio is…
Investing Principles Part I: Identifying Value based on Assets
This describes the first investment approach outlined in the Tweedy Browne Company publication entitled What Has Worked In Investing referenced in yesterday’s blog post. The net current assets approach was developed…
Re-defining Value
The value premium may seem to have disappeared. Since 1926, cheaper stocks have outperformed expensive ones by 400% according to data from Normura (see graph below). Since February 2007, however,…
