Are the bears ready to surrender? One month bounce does not make a bull market. Let’s keep it simple. The market has gone nowhere for the past 1.5 years and essentially has been trading in a range from October 2014 until today. Earning season is beginning and it is estimated that earnings will drop for the fourth quarter in a row! Even if we exclude energy, earnings are … [Read more...]
Archives for April 2016
Collection of Timeless Must-Read Research
This is a collection of timeless pieces, a treasure, that I believe are a must read for anyone who wants to advance their knowledge of the markets. Priceless Papers Value Investing: The Use of Historical Financial Statements to Separate Winners from Losers - academic paper by professor Joseph Piotroski which shows that by combining a 9-factor binary model to filter the low … [Read more...]
John Neff on Investing
The books reads more like a biography rather than an investment guide. Through the writings you discover that Neff's success was due to three factors: 1) value investing strategy, 2) extremely detailed analysis, and 3) a commitment to sticking to his strategy through the thick and thin. This last factor should not be taken lightly. One of the primary problems fund managers have … [Read more...]
The Little Book That Still Beats The Market
This best seller attributes its success to its very gifted writer. The book is both fun and easy to read. It bases its investment strategy on combining two statistics: earnings yield and return on capital. To his credit the author does say that if readers combine this method with solid fundamental analysis they will achieve superior returns. I believe this to be true and … [Read more...]
One Up on Wall Street by Peter Lynch
I first read this when I was in university in 1998 and I ended up on my summer internship quoting Lynch to brokers and analysts whether they liked it or not. Common sense, excellent advise, and detailed insight into Lynch's methodology. There is a lot of information, that despite the years is still useful today. You won't regret reading this gem! … [Read more...]
The Richest Man in Babylon
While not a book directly related to value investing, it is a must read by anyone wishing to succeed financially in life. The short stories have many lessons to teach and will leave you in awe as its simple teachings remain true, despite it being written almost 100 years ago! … [Read more...]
Quantitative Strategies for Achieving Alpha
Tortoriello provides its own twist via numerous two-factor models that prioritize the first factor before moving on to the second. Furthermore, the author discusses the logic behind his tests and ratios and provides excellent guidelines for investors. There are also ratios tested (eg. CAPEX/Net PPE) not seen elsewhere. … [Read more...]
