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	<title>Greenbackd</title>
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	<link>http://greenbackd.com</link>
	<description>Deep value, contrarian, and activist value investment strategies</description>
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		<item>
		<title>Why Does an Equal-Weighted Portfolio Outperform Market Capitalization- and Price-Weighted Portfolios?</title>
		<link>http://greenbackd.com/2012/05/17/why-does-an-equal-weighted-portfolio-outperform-market-capitalization-and-price-weighted-portfolios/</link>
		<comments>http://greenbackd.com/2012/05/17/why-does-an-equal-weighted-portfolio-outperform-market-capitalization-and-price-weighted-portfolios/#comments</comments>
		<pubDate>Thu, 17 May 2012 16:00:42 +0000</pubDate>
		<dc:creator>greenbackd</dc:creator>
				<category><![CDATA[About]]></category>
		<category><![CDATA[Behavioral economics]]></category>
		<category><![CDATA[Contrarian investment]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[Equal-Weight Index]]></category>
		<category><![CDATA[Joel Greenblatt]]></category>

		<guid isPermaLink="false">http://greenbackd.com/?p=5655</guid>
		<description><![CDATA[Yesterday I took a look at the different ways of structuring an index suggested by Joel Greenblatt. Greenblatt finds that an equal-weight portfolio far outperforms a market capitalization weight portfolio. And for good reason. Greenblatt says that market cap weighted indexes suffer from a systematic flaw &#8211; they increase the amount they own of a particular [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=greenbackd.com&#038;blog=5581605&#038;post=5655&#038;subd=greenbackd&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://greenbackd.com/2012/05/17/why-does-an-equal-weighted-portfolio-outperform-market-capitalization-and-price-weighted-portfolios/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	
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			<media:title type="html">Greenblatt EW Study Table 4</media:title>
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			<media:title type="html">Greenblatt EW Study Table 5</media:title>
		</media:content>

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			<media:title type="html">Greenblatt Charts EW Index</media:title>
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	</item>
		<item>
		<title>Equal Weight and Fundamental Indexing Beats The Market</title>
		<link>http://greenbackd.com/2012/05/16/equal-weight-and-fundamental-indexing-beats-the-market/</link>
		<comments>http://greenbackd.com/2012/05/16/equal-weight-and-fundamental-indexing-beats-the-market/#comments</comments>
		<pubDate>Wed, 16 May 2012 16:00:16 +0000</pubDate>
		<dc:creator>greenbackd</dc:creator>
				<category><![CDATA[About]]></category>
		<category><![CDATA[Behavioral economics]]></category>
		<category><![CDATA[Quantitative investment]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[Strategy]]></category>
		<category><![CDATA[Value Investment]]></category>
		<category><![CDATA[Dylan Grice]]></category>
		<category><![CDATA[Joel Greenblatt]]></category>
		<category><![CDATA[Magic Formula]]></category>
		<category><![CDATA[Value investing]]></category>

		<guid isPermaLink="false">http://greenbackd.com/?p=5637</guid>
		<description><![CDATA[Joel Greenblatt’s rationale for a value-weighted index can be paraphrased as follows: Most investors, pro’s included, can’t beat the index. Therefore, buying an index fund is better than messing it up yourself or getting an active manager to mess it up for you. If you’re going to buy an index, you might as well buy the best one. An index based [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=greenbackd.com&#038;blog=5581605&#038;post=5637&#038;subd=greenbackd&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://greenbackd.com/2012/05/16/equal-weight-and-fundamental-indexing-beats-the-market/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	
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			<media:title type="html">Greenblatt Index CAGRs</media:title>
		</media:content>

		<media:content url="http://greenbackd.files.wordpress.com/2012/05/grice-ivp-ls-vs-pe-ls.jpg" medium="image">
			<media:title type="html">Grice IVP LS vs PE LS</media:title>
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	</item>
		<item>
		<title>Value-Weighted Indexing: The Problem with Active Management</title>
		<link>http://greenbackd.com/2012/05/15/value-weighted-indexing-the-big-secret-to-beating-the-market/</link>
		<comments>http://greenbackd.com/2012/05/15/value-weighted-indexing-the-big-secret-to-beating-the-market/#comments</comments>
		<pubDate>Tue, 15 May 2012 16:00:09 +0000</pubDate>
		<dc:creator>greenbackd</dc:creator>
				<category><![CDATA[Behavioral economics]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[Value Investment]]></category>
		<category><![CDATA[Joel Greenblatt]]></category>
		<category><![CDATA[Value-Weighted Index]]></category>

		<guid isPermaLink="false">http://greenbackd.com/?p=5621</guid>
		<description><![CDATA[Joel Greenblatt’s rationale for a value-weighted index can be paraphrased as follows: Most investors, pro’s included, can’t beat the index. Therefore, buying an index fund is better than messing it up yourself or getting an active manager to mess it up for you. If you’re going to buy an index, you might as well buy the best one. An index based [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=greenbackd.com&#038;blog=5581605&#038;post=5621&#038;subd=greenbackd&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://greenbackd.com/2012/05/15/value-weighted-indexing-the-big-secret-to-beating-the-market/feed/</wfw:commentRss>
		<slash:comments>4</slash:comments>
	
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	</item>
		<item>
		<title>Joel Greenblatt&#8217;s solution to value investors&#8217; behavioral errors</title>
		<link>http://greenbackd.com/2012/05/14/joel-greenblatts-solution-to-value-investors-behavioral-errors/</link>
		<comments>http://greenbackd.com/2012/05/14/joel-greenblatts-solution-to-value-investors-behavioral-errors/#comments</comments>
		<pubDate>Mon, 14 May 2012 16:00:03 +0000</pubDate>
		<dc:creator>greenbackd</dc:creator>
				<category><![CDATA[About]]></category>
		<category><![CDATA[Behavioral economics]]></category>
		<category><![CDATA[Quantitative investment]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[Strategy]]></category>
		<category><![CDATA[James Montier]]></category>
		<category><![CDATA[Joel Greenblatt]]></category>
		<category><![CDATA[Value investing]]></category>

		<guid isPermaLink="false">http://greenbackd.com/?p=5584</guid>
		<description><![CDATA[Last week I looked at James Montier’s 2006 paper The Little Note That Beats The Market and his view that investors would struggle to implement the Magic Formula strategy for behavioral reasons, a view borne out by Greenblatt&#8217;s own research. This is not a criticism of the strategy, which is tractable and implementable, but an observation on how pernicious our [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=greenbackd.com&#038;blog=5581605&#038;post=5584&#038;subd=greenbackd&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://greenbackd.com/2012/05/14/joel-greenblatts-solution-to-value-investors-behavioral-errors/feed/</wfw:commentRss>
		<slash:comments>2</slash:comments>
	
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			<media:title type="html">greenbackd</media:title>
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			<media:title type="html">Greenblatt Cumulative Chart</media:title>
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	</item>
		<item>
		<title>Volatility at World&#8217;s End: Two Decades of Movement in Markets</title>
		<link>http://greenbackd.com/2012/05/11/volatility-at-worlds-end-two-decades-of-movement-in-markets/</link>
		<comments>http://greenbackd.com/2012/05/11/volatility-at-worlds-end-two-decades-of-movement-in-markets/#comments</comments>
		<pubDate>Fri, 11 May 2012 16:00:14 +0000</pubDate>
		<dc:creator>greenbackd</dc:creator>
				<category><![CDATA[Austrian Economics]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[Artemis Capital Management]]></category>
		<category><![CDATA[Volatility]]></category>

		<guid isPermaLink="false">http://greenbackd.com/?p=5552</guid>
		<description><![CDATA[Chris Cole of Artemis Capital Management has created an incredibly cool film called &#8220;Volatility at World&#8217;s End: Two Decades of Movement in Markets” showing  a depiction of real stock market volatility using trading data from 1990 to 2011. It accompanied his speech at the 2012 Global Derivatives and Risk Management Conference in Barcelona, Spain. Here&#8217;s Chris&#8217;s [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=greenbackd.com&#038;blog=5581605&#038;post=5552&#038;subd=greenbackd&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://greenbackd.com/2012/05/11/volatility-at-worlds-end-two-decades-of-movement-in-markets/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	
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			<media:title type="html">greenbackd</media:title>
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		<item>
		<title>How to beat the market: Joel Greenblatt&#8217;s List of Four Things Not To Do</title>
		<link>http://greenbackd.com/2012/05/10/how-to-underperform-the-market/</link>
		<comments>http://greenbackd.com/2012/05/10/how-to-underperform-the-market/#comments</comments>
		<pubDate>Thu, 10 May 2012 16:00:42 +0000</pubDate>
		<dc:creator>greenbackd</dc:creator>
				<category><![CDATA[Stocks]]></category>
		<category><![CDATA[Strategy]]></category>
		<category><![CDATA[Joel Greenblatt]]></category>
		<category><![CDATA[Magic Formula]]></category>

		<guid isPermaLink="false">http://greenbackd.com/?p=5609</guid>
		<description><![CDATA[Investors struggle to implement the Magic Formula strategy for behavioral reasons. They take a market beating model and proceed to underperform. Greenblatt found that a compilation of all the “professionally managed” accounts earned 84.1 percent over two years against the S&#38;P 500 (up 62.7 percent). A compilation of &#8220;self-managed&#8221; accounts over the same period showed a cumulative return of 59.4 percent, losing [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=greenbackd.com&#038;blog=5581605&#038;post=5609&#038;subd=greenbackd&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://greenbackd.com/2012/05/10/how-to-underperform-the-market/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
	
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			<media:title type="html">greenbackd</media:title>
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		<title>Joel Greenblatt on how and why investors struggle to follow the Magic Formula</title>
		<link>http://greenbackd.com/2012/05/09/joel-greenblatt-on-how-and-why-investors-struggle-to-follow-the-magic-formula/</link>
		<comments>http://greenbackd.com/2012/05/09/joel-greenblatt-on-how-and-why-investors-struggle-to-follow-the-magic-formula/#comments</comments>
		<pubDate>Wed, 09 May 2012 16:00:18 +0000</pubDate>
		<dc:creator>greenbackd</dc:creator>
				<category><![CDATA[Stocks]]></category>
		<category><![CDATA[James Montier]]></category>
		<category><![CDATA[Joel Greenblatt]]></category>
		<category><![CDATA[Magic Formula]]></category>
		<category><![CDATA[The Little Book That Beats The Market]]></category>

		<guid isPermaLink="false">http://greenbackd.com/?p=5523</guid>
		<description><![CDATA[Yesterday I looked at James Montier&#8217;s 2006 paper The Little Note That Beats The Market and his view that investors would struggle to implement the Magic Formula strategy for behavioral reasons. The Magic Formula is a logical value strategy, it works in backtest, and, most importantly, it seems to work in practice, as this chart [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=greenbackd.com&#038;blog=5581605&#038;post=5523&#038;subd=greenbackd&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://greenbackd.com/2012/05/09/joel-greenblatt-on-how-and-why-investors-struggle-to-follow-the-magic-formula/feed/</wfw:commentRss>
		<slash:comments>9</slash:comments>
	
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			<media:title type="html">greenbackd</media:title>
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		<media:content url="http://greenbackd.files.wordpress.com/2012/04/greenblatt-magic-formula-actual.jpg" medium="image">
			<media:title type="html">Greenblatt Magic Formula Actual</media:title>
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		<title>James Montier on why investors struggle to follow the Magic Formula: Cognitive Biases and Behavioral Errors</title>
		<link>http://greenbackd.com/2012/05/08/james-montier-on-why-investors-struggle-to-follow-the-magic-formula-cognitive-biases-and-behavioral-errors/</link>
		<comments>http://greenbackd.com/2012/05/08/james-montier-on-why-investors-struggle-to-follow-the-magic-formula-cognitive-biases-and-behavioral-errors/#comments</comments>
		<pubDate>Tue, 08 May 2012 16:00:36 +0000</pubDate>
		<dc:creator>greenbackd</dc:creator>
				<category><![CDATA[About]]></category>
		<category><![CDATA[Behavioral economics]]></category>
		<category><![CDATA[Enterprise Multiple]]></category>
		<category><![CDATA[Enterprise Value]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[Strategy]]></category>
		<category><![CDATA[James Montier]]></category>
		<category><![CDATA[Joel Greenblatt]]></category>
		<category><![CDATA[Magic Formula]]></category>
		<category><![CDATA[The Little Book That Beats The Market]]></category>

		<guid isPermaLink="false">http://greenbackd.com/?p=5516</guid>
		<description><![CDATA[In his 2006 paper, “The Little Note That Beats the Markets” James Montier backtested the Magic Formula and found that it supported the claim in the &#8220;Little Book That Beats The Market&#8221; that the Magic Formula does in fact beat the market: The results certainly support the notions put forward in the Little Book. In all [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=greenbackd.com&#038;blog=5581605&#038;post=5516&#038;subd=greenbackd&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://greenbackd.com/2012/05/08/james-montier-on-why-investors-struggle-to-follow-the-magic-formula-cognitive-biases-and-behavioral-errors/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	
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		<media:content url="http://greenbackd.files.wordpress.com/2012/05/montier-little-book-underperformance.jpg" medium="image">
			<media:title type="html">Montier Little Book Underperformance</media:title>
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		<item>
		<title>How to beat The Little Book That Beats The Market: An analysis of the Magic Formula</title>
		<link>http://greenbackd.com/2012/05/07/how-to-beat-the-little-book-that-beats-the-market-an-analysis-of-the-magic-formula/</link>
		<comments>http://greenbackd.com/2012/05/07/how-to-beat-the-little-book-that-beats-the-market-an-analysis-of-the-magic-formula/#comments</comments>
		<pubDate>Mon, 07 May 2012 16:00:11 +0000</pubDate>
		<dc:creator>greenbackd</dc:creator>
				<category><![CDATA[About]]></category>
		<category><![CDATA[Behavioral economics]]></category>
		<category><![CDATA[Enterprise Multiple]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[Strategy]]></category>
		<category><![CDATA[Warren Buffett]]></category>
		<category><![CDATA[Enterprise multiple]]></category>
		<category><![CDATA[Enterprise Value]]></category>
		<category><![CDATA[Joel Greenblatt]]></category>
		<category><![CDATA[Magic Formula]]></category>
		<category><![CDATA[The Little Book That Beats The Market]]></category>
		<category><![CDATA[Value investing]]></category>

		<guid isPermaLink="false">http://greenbackd.com/?p=5022</guid>
		<description><![CDATA[Since Joel Greenblatt&#8217;s introduction of the Magic Formula in the 2006 book &#8220;The Little Book That Beats The Market,&#8221; researchers have conducted a number of studies on the strategy and found it to be a market beater, both domestically and abroad. Greenblatt claims returns in the order of 30.8 percent per year against a market [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=greenbackd.com&#038;blog=5581605&#038;post=5022&#038;subd=greenbackd&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://greenbackd.com/2012/05/07/how-to-beat-the-little-book-that-beats-the-market-an-analysis-of-the-magic-formula/feed/</wfw:commentRss>
		<slash:comments>9</slash:comments>
	
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			<media:title type="html">Untitled</media:title>
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			<media:title type="html">Untitled</media:title>
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			<media:title type="html">Montier Little Book Results</media:title>
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		<media:content url="http://greenbackd.files.wordpress.com/2012/04/montier-ebitev-results.jpg" medium="image">
			<media:title type="html">Montier EBITEV Results</media:title>
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			<media:title type="html">Montier MF EBITEV</media:title>
		</media:content>

		<media:content url="http://greenbackd.files.wordpress.com/2012/04/montier-mf-ebitev-roc.jpg" medium="image">
			<media:title type="html">Montier MF EBITEV + ROC</media:title>
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		<title>Recent net net performance: Parsing on F_SCORE and Size</title>
		<link>http://greenbackd.com/2012/05/04/recent-net-net-performance-parsing-on-f_score-and-size/</link>
		<comments>http://greenbackd.com/2012/05/04/recent-net-net-performance-parsing-on-f_score-and-size/#comments</comments>
		<pubDate>Fri, 04 May 2012 16:00:13 +0000</pubDate>
		<dc:creator>greenbackd</dc:creator>
				<category><![CDATA[Net Current Asset Value]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[Net Net Stock]]></category>

		<guid isPermaLink="false">http://greenbackd.com/?p=5548</guid>
		<description><![CDATA[Wes Gray&#8217;s Turnkey Analyst has a guest post from Paul Sepulveda in which Paul  asks if it&#8217;s possible to improve net net returns by removing stocks with the highest risk of going to zero (the real losers). Paul has an interesting approach: My goal was to chop off the left tail of the distribution of returns. Piotroski [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=greenbackd.com&#038;blog=5581605&#038;post=5548&#038;subd=greenbackd&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://greenbackd.com/2012/05/04/recent-net-net-performance-parsing-on-f_score-and-size/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	
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			<media:title type="html">pic3</media:title>
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