Feeds:
Posts
Comments

Posts Tagged ‘Value Investment’

Searching for Rational Investors In a Perfect Storm: Value Investing Through 1999-2003

Posted in About, Value Investment, tagged on May 25, 2012 | 3 Comments »

Yesterday I covered a 2006 talk, “Journey Into the Whirlwind: Graham-and-Doddsville Revisited,” by Louis Lowenstein*, then a professor at the Columbia Law School, in which he compared the performance of a group of “true-blue, walk-the-walk value investors” and “a group of large cap growth funds”. Lowenstein based the talk on an earlier paper he had written “Searching for [...]

Read Full Post »

Which price ratio best identifies value stocks?

Posted in Enterprise Multiple, Enterprise Value, Stocks, Strategy, tagged , , , , , , , , , on April 30, 2012 | 14 Comments »

Which price ratio best identifies undervalued stocks? It’s a fraught question, dependent on various factors including the time period tested, and the market capitalization and industries under consideration, but I believe a consensus is emerging. The academic favorite remains book value-to-market capitalization (the inverse of price-to-book value). Fama and French maintain that it makes no difference which [...]

Read Full Post »

McDonald’s Corporation (NYSE:MCD) field trip report from 1965

Posted in About, Value Investment, tagged , on August 31, 2010 | 1 Comment »

Michael Bigger’s Bigger Capital blog has a great “field trip” report on McDonald’s Corporation (NYSE:MCD) from 1965. You could have picked up MCD then for a split-adjusted $0.06 per share, giving you a twelve-hundredfold return to date. Says Michael: A good friend of mine, a talented research analyst, covered McDonald’s (MCD) in the sixties. One [...]

Read Full Post »

Dover Motorsports Inc (NYSE:DVD) and Mario Cibelli’s 13D amendment

Posted in Activist Investors, Stocks, tagged , , , on April 29, 2010 | 2 Comments »

Mario Cibelli’s recent 13D amendment for Dover Motorsports Inc (NYSE:DVD) is interesting reading. Cibelli controls around 17.5% of DVD through Marathon Partners and Cibelli Capital Management. His most recent 13D amendment filed Wednesday annexes a letter setting out a (huge) case study of DVD “partly as a contribution to public education but also to obtain [...]

Read Full Post »

ROIC and reversion to the mean: Part 3

Posted in About, Behavioral economics, Contrarian investment, Net Current Asset Value, Net Quick Stocks, Net Quick Value, Stocks, Value Investment, tagged , on April 27, 2010 | Leave a Comment »

Recently I’ve been discussing Michael Mauboussin’s December 2007 Mauboussin on Strategy, “Death, Taxes, and Reversion to the Mean; ROIC Patterns: Luck, Persistence, and What to Do About It,” (.pdf) about Mauboussin’s research on the tendency of return on invested capital (ROIC) to revert to the mean (See Part 1 and Part 2). Mauboussin’s report has significant [...]

Read Full Post »

Grantham on the potential disadvantages of Graham-and-Dodd investing

Posted in About, Stocks, Value Investment, tagged , on April 26, 2010 | 11 Comments »

Jeremy Grantham’s 2010 first quarter investor letter (.pdf) appends the first part of a speech he gave at the Annual Benjamin Graham and David Dodd Breakfast at Columbia University in October last year. The speech was titled Friends and Romans, I come to tease Graham and Dodd, not to praise them. In it Grantham discussed the “potential [...]

Read Full Post »

ROIC and reversion to the mean: Part 2

Posted in About, Stocks, Value Investment, tagged , , on April 22, 2010 | 3 Comments »

Yesterday I discussed Michael Mauboussin’s December 2007 Mauboussin on Strategy, “Death, Taxes, and Reversion to the Mean; ROIC Patterns: Luck, Persistence, and What to Do About It,” (.pdf) about Mauboussin’s research on the tendency of return on invested capital (ROIC) to revert to the mean. Mauboussin’s report has three broad conclusions, with significant implications for modelling: [...]

Read Full Post »

ROIC and reversion to the mean: Part 1

Posted in About, Stocks, Value Investment, tagged , on April 21, 2010 | 7 Comments »

In Michael Mauboussin’s December 2007 Mauboussin on Strategy, “Death, Taxes, and Reversion to the Mean; ROIC Patterns: Luck, Persistence, and What to Do About It,” (.pdf) Mauboussin provides a tour de force of data on the tendency of return on invested capital (ROIC) to revert to the mean. Much of my investing to date has been based [...]

Read Full Post »

Endangered species update: The extinct, the survivors, and the new watch list

Posted in About, Activist Investors, Catalysts, Chromcraft Revington (AMEX:CRC), Stocks, tagged , , , , , on April 13, 2010 | 1 Comment »

In March I highlighted an investment strategy I first read about in a Spring 1999 research report called Wall Street’s Endangered Species by Daniel J. Donoghue, Michael R. Murphy and Mark Buckley, then at Piper Jaffray and now at Discovery Group, a firm founded by Donoghue and Murphy (see also Performance of Darwin’s Darlings). The premise, simply stated, is [...]

Read Full Post »

A tide in the affairs of men

Posted in About, Quantitative investment, Stocks, Value Investment, tagged , on March 31, 2010 | 11 Comments »

In A Crisis In Quant Confidence*, Abnormal Returns has a superb post on Scott Patterson’s recounting in his book The Quants of the reactions of several quantitative fund managers to the massive reversal in 2007: In 2007 everything seemed to go wrong for these quants, who up until this point in time, had been coining profits. This inevitably [...]

Read Full Post »

Older Posts »

Follow

Get every new post delivered to your Inbox.

Join 1,013 other followers