Posts Categorized: Finance

The Very Cheapest Stocks (Price/Book) Do Very Badly

Book to price is a bad value factor. It is a decent stock selection factor overall, but relative to the other ways of measuring value (earnings to price, cash flow to price, EBITDA/EV, etc) it is sub par.  I’ve been interested lately in very concentrated value portfolios, and found it interesting that when running very…

More on Profit Margins

Jesse Livermore has a characteristically great and thorough look at U.S. profit margins up on his website, which I highly recommend.  I’ve written about margins a few times in the past and find them fascinating. Jesse’s key point is how important financial and technology stocks are to current U.S. profit margins, so I thought I’d…

Buffett wisdom that you may not have heard before

I work hard to not quote or invoke Warren Buffett too often. His wisdom is ubiquitous and he doesn’t need another preacher. But I came across some unique insights from Mr. Buffett through a third party that I feel compelled to share. These notes came from Jason Ke Wang (@Wangkejason), a graduate student earning his…

How Sherlock Holmes Can Make You A Better Investor

Successful investing can only result from good thinking or good luck. Because we only control the former, I am always on the lookout for books about the process of thinking. One such book is A Few Lessons from Sherlock Holmes. Holmes’s approach is rules-based, disciplined, and often unconventional: three hallmarks of many successful investors and superior investing…

Technology Cash Machines

You’d be uncomfortable if you didn’t have enough cash to pay your bills, right? Well its the same story for companies–its good to have cash to cover your short term liabilities. I was curious how balance sheets looked today by a measure called the cash ratio, which is a convenient measure of short-term liquidity. The…

5 Predictions for 2015

1.       Everyone will continue to make predictions despite overwhelming evidence that predictions are useless. My father has been an incredible mentor, but you’d be surprised how few investing lessons he’s ever taught me. There were never lessons about ratios or sectors or discounted cash flows. Instead when I was growing up there was just one…

Value + Momentum: The Tortoise and the Hare

Buy cheap stocks, or follow the trend? Two conflicting (and often exact opposite) strategies that have both worked well through market history. Momentum, when it’s working well, can be unstoppable for years. When it’s not working, it can lead to horrendous results relative to the market. Value has been steadier, but it too undergoes periods…

Millennial Money Holiday Extras

Hey all, in the spirit of the holidays I’ve put together 3 offers for those that order Millennial Money for themselves or for their loved ones. For 17 bucks a book, you can light a fire under the rears of young people you know to get them started saving & investing. You can see the details here…  

Value and Glamour Investing, Re-Envisioned

Did you know that the best performing glamour stocks outperform the best performing value stocks? Sounds exciting, right? Well it may be, but expensive stocks still stink. In this piece I visualize the performance of value and glamour stocks (inspired by and originally designed by the director of research at OSAM, Chris Meredith) in a new way to…

Favorite Interviews

Interviews are my favorite. Lighter than presentations and easier than long pieces of text, interviews can provide fun and digestible insight into a topic–just look at the rise of the podcast! Here are my favorite interviews so far: Talking all things investing (whether you are a millennial or not) with the great Morgan Housel of the…