Just Why Do Today’s Worst Performing Stocks Historically Outperform

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One of my favorite investing books is A Mathematician Plays The Stockmarket by best selling author – John Allen Paulos. Paulos demonstrates what the tools of mathematics can teach us about the machinations of the stock market. One of my favorite parts of the book focuses on regression to the mean in the stock market, and why today’s worst performing stocks … Read More

Has The Price-To-Book Metric Become Redundant – O’Shaughnessy Asset Management

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Just finished reading a great paper by O’Shaughnessy Asset Management that discusses whether the traditional Price-to-Book metric has become redundant because of the increase in shareholder transactions, primarily through the increase in share repurchases. Here’s an excerpt from that paper: Value has broadly been accepted as an investing style and, historically, portfolios formed on cheap valuations have outperformed expensive portfolios. But value comes … Read More

Investors Shouldn’t Compare Their Performance To Others – Here’s Why

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Great article by Ian Cassell at MicroCapClub titled, Don’t Compare Yourself To Others. Ian covers two important issues that all investors can relate to. The first is how to sit still while others are making money, because you can’t find stocks that fit your strategy. The second is how to live through a drawdown when your portfolio is underperforming. Here’s … Read More

A Very Simple Formula For Figuring Out How Many Stocks To Hold

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Here at the Acquirer’s Multiple we believe your equally weighted portfolio should consist of 20-30 stocks generated from our Deep Value Stock Screens. In general terms, holding more stocks leads to greater diversification, and lower volatility, but is harder to manage and requires more purchases. Fewer stocks reduces the number of purchases, but leads to great volatility, and magnifies the … Read More

Nice Portfolio, Shame About The Human Running It

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James Saft at the Globe and Mail illustrates how an investor’s behaviour can be one of the biggest risks facing a successful investing strategy. Here’s an excerpt from that article: Investors hate two things above all else: losing money and missing out. The tension between the two, the fear of loss and the fear of doing less well than one’s neighbour, … Read More

One of The Best Investing Tweets of 2017. So Far!

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One of the best blogs in our Top 50 Investing Blogs 2017 is Morgan Housel at The Collaborative Fund Blog, and one of the best investing tweets for 2017 is this one which encapsulates everything you need to know as an investor: Everything I’ve learned about investing points to the idea that simplicity is underrated and always will be because … Read More