Book (Value) It?
September 30, 2005 - Value Premium
…because mean reversion of price-to-book ratios outpaces reinvestment of earnings, value stocks outperform growth stocks.
September 30, 2005 - Value Premium
…because mean reversion of price-to-book ratios outpaces reinvestment of earnings, value stocks outperform growth stocks.
September 29, 2005 - Individual Gurus, Investing Expertise
…Warren Buffett’s consistently high level of outperformance challenges the Efficient Markets Hypothesis.
September 28, 2005 - Investing Expertise
…sophisticated and experienced investors/traders avoid most of the bad effects of the disposition bias. Trading practice helps.
September 26, 2005 - Big Ideas
…noise generally swamps signal (true outperformance or underperformance) in financial markets, and in life generally.
September 16, 2005 - Investing Expertise
…conflicts from the brokerage business (not investment banking) play an important role in shaping analyst forecasting behavior.
September 14, 2005 - Momentum Investing
…focusing on stocks with both high six-month momentum and rapidly increasing six-month momentum offers significant excess returns.
September 7, 2005 - Value Premium
In their August 2005 paper entitled “Value Versus Growth: Stochastic Dominance Criteria”, Abhay Abhyankar, Keng-Yu Ho and Huainan Zhao apply stochastic dominance techniques to assess the relative performance of value and growth investment strategies in U.S. equity markets over the past half century. These techniques: (1) compare entire return distributions (not just means or medians);… Keep Reading
September 6, 2005 - Individual Investing
…individual investors are systematic stock trading losers; institutions, systematic winners. Individual investors may well be relatively overconfident (despite lack of investing education) and thrill-seeking compared to institutional investors.
September 2, 2005 - Animal Spirits, Individual Investing
…individual investors should exercise special care when considering the repurchase of stocks previously owned or the purchase of more of stocks already owned to ensure that their intellects are in charge of their feelings.
August 31, 2005 - Calendar Effects
…the average investor in the U.S. equities will have difficulty avoiding relatively poor returns during the summer. They should focus on the winter months.