Is Dividend Yield Still A Value Factor for U.S. Stocks?

Value factors rely, for the most part, on some comparison between current price and some fundamental measure of a company’s production like sales, earnings, or cash flow. Dividend yield—dividends paid divided by price—has been in the stable of value factors for a long time. But does a high dividend yield indicate cheapness for a U.S….

Under-the-Radar Investment Books

I cannot find a good new investing book. It’s driving me nuts. Maybe you are in the same boat? If so, here are several “under-the-radar” books from my Evernote archives. If you know of more, leave suggestions in the comments. If you want to receive suggestions like this every month, sign up for the book…

High Conviction Buybacks

Large U.S. companies  spent nearly half a trillion dollars on net buybacks (cash spent on buybacks less cash raised through issuance) during the 12 months ending 6/30/2015.  That’s almost as much as the buyback peak in 2007, which didn’t turn out too well. Scary! But hold on. Something that gets lost beneath this broader trend is…

Biggest Investing Influences

I love this question from a recent interview with Harvest:  Who were some of the people that influenced your investment style along the way? I’d love to hear your answers in the comments section. My answer was: PO: David Dreman, for his sharp insight into the power of contrarian investment strategies. Joseph Campbell, whose writing on mythology contains countless lessons…

Bullet-Proof Book Recommendations

Every month for the past 16 months, I’ve emailed a group a list of 4-6 book suggestions. Last November, about 1,000 people were on the list, and today we are up to 4,000 and growing fast. I get a ton of feedback on the books I suggest along with dozens of recommendations for other books…

Stolen Prose

Its summer, I don’t write about topics like Grexit, and I am deep into several research projects, so in the meantime I thought I’d post something entirely different, that just might help you find your next book. The following is an arrangement of sentences and passages that I wish I’d written, pieced together into a…

Creating Unique Investment Strategies

I took a car service home from Newark airport at 1 a.m. this week after a tiring but fun west-coast trip. I’d just met with 15 very impressive teams—advisors, RIAs, etc—to discuss markets and investment strategies. It struck me that it must be very difficult for advisors–who are constantly bombarded by portfolio managers like me…

Return on Equity Explored

Non-financial firms are earning an impressive return on their collective equity value. As of April 30th, the U.S. markets return on equity was nearly 18%, well above the long term average of 14% for non-financial firms. Obviously, corporations like earning impressive returns on their equity. So what is driving today’s elevated rates, and what trends…

Some Poetry

Sometimes, I find good poetry superior to everything else. Tonight is one such night. These are T.S. Eliot, except where otherwise noted.   In my beginning is my end. The inner freedom from the practical desire, The release from action and suffering, release from the inner And the outer compulsion, yet surrounded By a grace…

A Wealth of Common Sense

You are who you read. Those who read Ben Carlson’s writing are better for it. He is honest, succinct, and full of insight for investors of all stripes. I’ve never interviewed anyone or published a guest post, but today I make an exception because this guy has become such a valuable resource for investors, and…