When investing, for every fairy tale stock like an Amazon(AMZN) or Nvidia(NVDA), there’s an equally disastrous stock like MoSys(MOSY) or Gevo (GEVO). To avoid getting into stocks like these, it’s important to look at their failures and analyze them to avoid getting into the next potential train wreck of a stock
Should you be Scared of the Dow’s 1700 point drop? On the fifth of February 2018 the Dow Jones Industrial Average saw its largest single day drop in history. This drop coming off a market sell-off at the end of January has caused many investors to call for the start of a bear market.…
I've been seeing a lot of articles recently that are very focused on the idea, that by purchasing the industry or sector that performed best over the past year you are giving you the best chance at making returns. I'm a little skeptical, but just as hopeful to see whether or not this is a potential new avenue to take in my portfolio.
I’ve been seeing a lot of articles recently that are very focused on the idea, that by purchasing the industry or sector that performed best over the past year you are giving you the best chance at making returns. I’m a little skeptical, but just as hopeful to see whether or not this is a potential new avenue to take in my portfolio.…
Survivorship Bias – How does it work?
I was recently lurking around an online investment forum when the following post came up – “I recently ran an experiment where I generated random 7 to 50-stock portfolios from the 500 largest U.S. traded companies and measured their performance over the past 10 years. All of the randomly selected portfolios outperformed the S&P500 and BRK.B in terms of compound annual rate of return.…
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In my years of using Equities Lab as a quantitative investment tool, I have never lost sight of the core values of long term investing. Many of these values are in the teachings of Benjamin Graham and used by an idol of mine, Warren Buffett. Remembering this, no matter how much risk I take on in my portfolio, I always keep a subsection for value investments.…
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Bitcoin Bitcoin, we’ve all heard of them, and some of us even have a few. Personally, I’ve been a huge fan of the coin since early 2011 when the coins were trading at less than $5. I actually distinctly remember picking a number of them up at below the $1 mark.…
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Bringing Technical Analysis into Value Investing Though I’m a strong believer in the fundamentals, and will die by the principals that fundamental investing works the best, I do have to admit that there are some virtues to technical investing. This is especially true when we look at how technical analysis can help us build and maintain our more fundamental and value based strategies.…
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How are investments like apple pie? Think back to the last slice of apple pie you have had. My last slice, eaten with my wife and two daughters, was delicious. It was out of this world. For me, it was the best apple pie. What makes it special? The recipe (passed down from my mother in law to my wife, Emily) is simple: Ingredients: 6 Granny Smith Apples 1/2 cup of sugar cinnamon nutmeg Four Pillsbury frozen pie crusts First question: why are we using four pie crusts for one pie?!?…
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It certainly feels like all the small cap stocks have had a terrible time of it.  Since the beginning of the year, the Russell 2000 Index fund (IWM) has gone down 3.5%.  The S&P 500 Index fund (SPY) has gone up 4% in the same period.What's going on here?  Is it due to some particular stock or set of stocks in the S&P 500 or in the small cap universe that are acting oddly?  If it were a particular set of stocks, then equal weighting the S&P 500 and picking a basket of small cap stock should kill the effect.