The Acquirer’s Multiple® Canada All TSX Stock Screen Backtest

Tobias CarlisleStudy Comments

Chart 1. Returns from January 2, 1999 to June 16, 2017 (Log.) We backtested the returns to a theoretical portfolio of stocks selected by The Acquirer’s Multiple® from the Canada All TSX stock screen. The backtest assumed the screen bought and held for a year 30 stocks selected from the All TSX universe (the largest 95 percent of all TSX stocks by market … Read More

Is the CAPE Ratio providing a warning for investors – OFR

Johnny HopkinsResearch, Study Comments

While no single tool, ratio or source should be used to evaluate the economy and its financial stability. The Office of Financial Research (OFR) provides a free bi-annual report, and a really cool heat-map, on their version of what’s happening in the economy. Its called the Financial Stability Monitor, here’s their latest report and here’s their really cool heat-map. “This … Read More

Minimizing Your Downside Risk – Ty Cobb Batted .367 Cos He Got On Base!

Johnny HopkinsJoel Greenblatt, Research, Resources, Study Comments

(Image Credit: http://www.outsidepitchmlb.com/) Like baseball, investing is more about safe hits that’ll get you on base rather than hitting home runs. The importance of calculating down-side risk rather than upside gains is one of the most overlooked concepts in stock market investing. Of course Warren Buffett is often quoted as saying, “Rule No.1 is never lose money. Rule No.2 is never forget … Read More

Hang out with losers if you want outstanding results in the stock market

Johnny HopkinsResearch, Resources, Study Comments

(Image, Do You Have a Friend Who is a Loser? Get Rid of Em!, accessed 18 July 2016, http://persuasive.net/) Let’s face it, no-one wants to hang out with losers. But when its comes to investing, these are the exactly the types of stocks most likely to provide outstanding returns. The problem is there’s one undeniable fact in stock market investing and that … Read More

The Magic of Compounding Returns, The Tyranny of Compounding Costs – John Bogle

Johnny HopkinsJohn Bogle, Research, Resources, Study Comments

(Image, John Bogle on the Rise of Index Funds, accessed 16 July 2016, http://www.barrons.com/) Have you ever looked at the statement you receive from your investment manager and wondered, what the heck are they talking about! You think you’re getting good returns but it turns out you’re underperforming. The question is, WHY? One reason that investors continue to underperform is provided by a … Read More

Beating the Market | 16 Rules by Walter Schloss, plus 3 more

Johnny HopkinsResearch, Resources, Study, Walter J. Schloss Comments

(Image: The Walter Schloss approach to value investing, accessed 14 July 2016, http://vintagevalueinvesting.com/) The good news is that there’s thousands of websites that provide great information for new investors in the stock market. The bad news is that there are thousands more not providing such great information. If you’re new to stock market investing, here’s three important rules to start with:

Value Investing | Danny DeVito (Video)

Johnny HopkinsStudy Comments

(Video. Danny DeVito Explaining Value Investing — Benjamin Graham Style (Other People’s Money), accessed Youtube 13 July 2016, https://www.youtube.com/) Bit of humor today. Its aged a little, but here’s a great 3 minute video from the 1991 movie, Other People’s Money. Danny DeVito explains the timeless concept of value investing succinctly.

So you want to be a stock market investor? Take this test first!

Johnny HopkinsMichael Mauboussin, Research, Study Comments

(PHOTO: Source, www.michaelmauboussin.com) One of the great things about being a stock market investor in the year 2016, is that we have the internet. That means we have access to loads of free information to help us become better investors. There’s lots of great research that tells us why we continue to underachieve in the stock market. One of my favorite … Read More

Overriding emotional investing by Klarman, Munger and Buffett

Johnny HopkinsSeth Klarman, Study Comments

(PHOTO: Source http://www.talkativeman.com/seth-klarmans-recommended-books-on-investing/) Recently I wrote an article on investing and Behavioral Finance. Behavioral finance is a relatively new field that seeks to combine behavioral and cognitive psychological theory with conventional economics and finance to provide explanations for why people make irrational financial decisions. The article is called, The biggest problem in share investing, is you! It demonstrates how human beings make terrible decisions … Read More