Money and Finance
From The Small-Cap Advantage: How Top Endowments and Foundations Turn Small Stocks into Big Returns:
- Value And Growth Investing...
From The Small-Cap Advantage: How Top Endowments and Foundations Turn Small Stocks into Big Returns: A common misperception among professional investors is that there is a bright-line distinction between value and growth investing. This is a legacy belief...
- Competitive Forces And Competitive Advantages...
From The Small-Cap Advantage: How Top Endowments and Foundations Turn Small Stocks into Big Returns: If a company is earning far in excess of its cost of capital, it is likely to attract competition. Competitive forces chip away at economic margins in...
- Quality And Value...
From The Small-Cap Advantage: How Top Endowments and Foundations Turn Small Stocks into Big Returns: Factor screening on any of the aforementioned ratios suffers from a major flaw: Company value is determined by all future free cash flows discounted...
- 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...
- 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...
Money and Finance
Starting with a qualitative search...
From The Small-Cap Advantage: How Top Endowments and Foundations Turn Small Stocks into Big Returns:
Most investment processes begin with quantitative elements like filters and screens. The qualitative work is often left for the latter stages, after suitable investment candidates have been identified. Investment processes are often structured in this quantitative-first order for two reasons. First, it is more convenient for the manager to reduce the size of the opportunity set to a more manageable list of companies. Second, institutional investors often demand a step-by-step process that can neatly illustrate the filtering of thousands of companies into a final portfolio. But convenience and marketing should not be the drivers of a robust investment process. Managers who understand the hidden dangers of screening and strict adherence to quantitative investment processes should instead start with the qualitative search for competitive advantage and management talent. By compiling a list of qualitatively superior companies first, and limiting valuation work to these, a small-cap manager prevents being drawn into seductively cheap subpar ideas.
- Value And Growth Investing...
From The Small-Cap Advantage: How Top Endowments and Foundations Turn Small Stocks into Big Returns: A common misperception among professional investors is that there is a bright-line distinction between value and growth investing. This is a legacy belief...
- Competitive Forces And Competitive Advantages...
From The Small-Cap Advantage: How Top Endowments and Foundations Turn Small Stocks into Big Returns: If a company is earning far in excess of its cost of capital, it is likely to attract competition. Competitive forces chip away at economic margins in...
- Quality And Value...
From The Small-Cap Advantage: How Top Endowments and Foundations Turn Small Stocks into Big Returns: Factor screening on any of the aforementioned ratios suffers from a major flaw: Company value is determined by all future free cash flows discounted...
- 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...
- 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...