Book Review: The Alpha Masters
This book has just been released. I got an early copy. The book is interesting enough that I would like to do a Q&A with the author, and I have contacted the PR flack to do so. To the review: Would you like to understand the mindsets of a variety of successful hedge fund...
Simple Stock Valuation
I appreciate Eddy Elfenbein. He comes up with ideas that make me say, “Huh. Interesting. Let’s test that.” His recent article, World’s Simplest Stock Valuation Measure, put forth the idea that: Growth Rate/2 + 8 = PE Ratio Cool, reminds me of my 1993 formula for value investing: Price per share < Tangible Book per...
The Best of the Aleph Blog, Part 15
This stretches from August 2010 to October 2010: The Education of a Corporate Bond Manager, Part VII On the value of credit analysts. The Education of a Corporate Bond Manager, Part VIII On price discovery in dealer markets, and auctions gone wrong. I never knew that I could haggle so well. The Education of a...
We Eat Dollar Weighted Returns — IV
I think one of the largest areas for practical investigation in finance is reviewing dollar-weighted versus time weighted returns, especially for vehicles that are traded heavily. I am going to try to analyze one major ETF per month to see what the level of slippage is due to trading. But if my hypothesis is wrong,...
We Eat Dollar Weighted Returns — IV
I think one of the largest areas for practical investigation in finance is reviewing dollar-weighted versus time weighted returns, especially for vehicles that are traded heavily. I am going to try to analyze one major ETF per month to see what the level of slippage is due to trading. But if my hypothesis is wrong,...
Sorted Weekly Tweets
Market Dynamics On Paradigm Shifts http://t.co/h68quEDX Hunter takes us through mental exercises 2 make us intelligently contrarian. “Invert, Always Invert” May 02, 2012 Hedgers’ net short position vanishes in US oil http://t.co/X0hLOWGB Commercial interests do not fear lower prices, could be bullish 4 crude May 02, 2012 There’s Plenty of Money for Junk http://t.co/vXML0Bao...
Correlating Risky Assets
Asset allocation is tough, because the correlations are not stable. Here’s an example: in the 90s, at many conferences that I went to, I was told that one of the smartest moves you could make was to invest heavily in every new class of Asset Backed Security [ABS] created, because they all tighten in yield...
On Distribution Formulas
Before I get started this evening, I would like to offer an apology to those that read my recent piece, Simple Retirement Calculator. I didn’t define all of the terms in the piece, and so here are the definitions: DB plan — defined benefit plan, a pension plan that offers a certain benefit, and the...
Simple Retirement Calculator
Sorry that I have not been posting much of late. April is always rough for me. Taxes play some role in April, because I get a certain amount of my tax data late, but the main reason stems from some charitable boards on which I serve, which meet in/near April. One of the questions that...
Tickers for the Current Rebalancing
When I look at what stocks to switch to as I manage my assets, and those of my clients, I look for assets that may be more valuable than the market currently believes. Most of that involves looking at industries and valuations, but that has led me to the following group of tickers: ABC ACCL...
Book Review: Accounting for Value
Before I start this evening’s book review, I would like to ask a favor of my readers. If you like my reviews, maybe you can say that they are helpful at Amazon. I rank in the 2000s at present, which was a challenge to get to, because not many reviewers of finance, investing, and economics...
Book Review: Accounting for Value
Before I start this evening’s book review, I would like to ask a favor of my readers. If you like my reviews, maybe you can say that they are helpful at Amazon. I rank in the 2000s at present, which was a challenge to get to, because not many reviewers of finance, investing, and economics...
