Investment Research
US Companies Are NOT Holding Too Much Cash
We have been considering the causes of the rising cash levels at US companies. Surprisingly, we realized that the question asked was the wrong one.
Read MoreWhat Academia Say about High Cash Levels in the US
Over the last few weeks, we have been considering the causes of the rising cash levels at US companies from a low of about 4% in 1995, to the currently very high 11%. Let’s have a look at what academia say about it.
Read MoreGearing Doesn’t Matter for Return
Does investing in low-gearing companies generate superior returns? We test this over 10 years on about 9,000 stocks globally. Unfortunately, the key to outperformance seems to be found elsewhere.
Read MoreMomentum Is a Good Start to Beat the Market
We test if investing in high momentum stocks can generate outperformance. We tested our hypothesis over 10 years on about 10,000 stocks globally. Momentum turns out to work quite well.
Read MoreDirt Cheap Stocks Are Too Risky
We test if investing in only low price-to-book companies can generate outperformance. We tested our hypothesis over 10 years on about 10,000 stocks globally. It seems to work for dirt cheap stocks, but when we adjust for risk the results change.
Read MoreInvesting Is Not Just Buying Highly Profitable Companies
We test if return on assets alone can generate outperformance. We tested our hypothesis over 10 years on about 10,000 stocks globally and couldn’t find support for it. In fact, the results indicate something else.
Read MoreMomentum Investing Explained Through Physics and a Hummer H2
The value and size premiums are usually not very controversial, but momentum is one of the factors that many times leads to a discussion among investors. Let’s take a look at what momentum investing is, what evidence supports the momentum premium and how momentum can help you become a better investor.
Read MoreVolatility as a Predictor of Stock Market Performance
Due to the increased uncertainty in the world’s equity markets during the past year or so, a common question we’ve had from investors is whether now is the right time to invest in equity or not?
Read MoreWhy Are Korean Stocks So Cheap?
My recent time in Korea refreshed my mind about the beauty of Asia—the contrasts. Being a financial analyst at heart, I was searching for answers to questions, such as: Why has the Korean stock market been so cheap, for so long? Is this going to reverse (Providing a great buying opportunity)? My short answer: Small changes are coming, but don’t expect the structure of society to change; and, like the Thai smile, expect the “Korea Discount” to remain for the near future.
Read MoreYour Newborn’s College Education will Cost at Least $2,000 per Year
The cost of a US public university education for a child born today will be about $80,000. A parent could invest about $2,000 the year their child is born, and increase that contribution by 5% each year to make sure that child can go to university. They could do this by buying a broad market fund or ETF depending on what suits their situation, and contributing money every year.
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