Money and Finance
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Book: Quantitative Value
- Price And Value...
From Capital Returns:It should never be forgotten that, in its most basic form, investing is always and everywhere about price and value. Price is what you pay, says the Sage of Omaha, and value is what you get. By this definition, every serious...
- Warren Buffett On Qualitative And Quantitative Factors In Investing (1967)
From Warren Buffett's October 1967 Letter to Partners: The evaluation of securities and businesses for investment purposes has always involved a mixture of qualitative and quantitative factors. At the one extreme, the analyst exclusively oriented...
- Graham And Dodd On Private Owner Valuation
From Security Analysis:The other application of the principle of investing in undervalued common stocks is directed at individual issues, which upon analysis appear to be worth substantially more than they are selling for. It is rare that a common stock...
- Horizon Kinetics May 2013 Market Commentary
Regular readers are familiar by now with Horizon Kinetics’ focus on qualitative attributes that may be predictive of outperformance. Consistent with the Firm’s long-term value investing philosophy, identification of these traits has been central to...
- My Stock Picking Strategy
When I describe my stock picking strategy, many people think it's weird. I wrote about my Stock picking strategy before, you can read it here. Here is my updated list: 1. The stock should pay dividends. I added it as a rule. I still...
Money and Finance
Excerpt from Chapter 1 of Quantitative Value by Wesley Gray and Tobias Carlisle
This book is organized into six main parts. Part One sets out the rationale for quantitative value investment and introduces our checklist. In it we examine several simple quantitative value strategies to illustrate some key elements of the investment process. In Part Two we discuss how to avoid stocks at high risk of sustaining a permanent loss of capital—those suffering from financial statement manipulation, fraud, and financial distress. Part Three contains an examination of the indicia of high-quality stocks—an economic franchise and superior financial strength. We go bargain hunting in Part Four, looking for the price ratios that best identify undervalued stocks and lead to the best risk-adjusted investment performance. We look at several unusual implementations of price ratios, including long-term average price ratios and price ratios in combination. Part Five sets out a variety of signals sent by other market participants. There we look at the impact of buybacks, insider purchases, short selling, and buying and selling from institutional investment managers like activists and other fund managers. Finally, in Part Six we build and test our quantitative value model. We study the best way to combine the research we’ve considered into a cohesive strategy, and then back-test the resulting quantitative value model.
................
Book: Quantitative Value
- Price And Value...
From Capital Returns:It should never be forgotten that, in its most basic form, investing is always and everywhere about price and value. Price is what you pay, says the Sage of Omaha, and value is what you get. By this definition, every serious...
- Warren Buffett On Qualitative And Quantitative Factors In Investing (1967)
From Warren Buffett's October 1967 Letter to Partners: The evaluation of securities and businesses for investment purposes has always involved a mixture of qualitative and quantitative factors. At the one extreme, the analyst exclusively oriented...
- Graham And Dodd On Private Owner Valuation
From Security Analysis:The other application of the principle of investing in undervalued common stocks is directed at individual issues, which upon analysis appear to be worth substantially more than they are selling for. It is rare that a common stock...
- Horizon Kinetics May 2013 Market Commentary
Regular readers are familiar by now with Horizon Kinetics’ focus on qualitative attributes that may be predictive of outperformance. Consistent with the Firm’s long-term value investing philosophy, identification of these traits has been central to...
- My Stock Picking Strategy
When I describe my stock picking strategy, many people think it's weird. I wrote about my Stock picking strategy before, you can read it here. Here is my updated list: 1. The stock should pay dividends. I added it as a rule. I still...