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The Pros and Cons of Quantitative and Discretionary Investing
As quantitative investors, we can sometimes feel that there is no reason anyone should ever use a discretionary strategy. But like most issues in investing, there are two sides to this argument. In this episode, we talk about the benefits of both quantitative and discretionary investing.
The Human vs. The Quant
Timeless Investing and Life Lessons with Jim O’Shaughnessy
In this week’s episode we are privileged to be joined by Jim O’Shaughnessy. Jim is a pioneer in quantitative investing and the founder of O’Shaughnessy Asset Management.
A Detailed Look at the Quality Factor
The value factor is fairly easy to define. There are obviously many different metrics you can use to define value, but they all are a function of comparing the price of stock to some sort of fundamental. So even though each value metric is unique, they at least rhyme in terms of what they are looking for.
The Balance Between What Is and What Should Be
As we all experience a market where things are not going the way that many investors think they should be, I thought it would be a good time to look at some examples of this and what I think can be learned from them.
Interview: Systematic Value Investing with Wes Gray
In this interview with Wes Gray, we discuss:The recent struggles of value investing and how the current period fits into a long-term context…
The Case For Value Stocks
It sounds a little weird to say that value is a value, but on a historical basis, that is exactly what it is. One of the major reasons value investing works is because investors tend to systematically overestimate the problems that companies that are going through difficult times are having.
The Misuse of Market Valuation
Despite the limitations of market valuation data, it can be useful if put into the proper context. Here are a few things to keep in mind when looking at market valuation data.
The Challenges of Multi-Factor Investing
building a multi-factor investment strategy can be much more difficult than it seems and requires a series of decisions that can have a significant impact on the end result. In this episode, we look at multi-factor investing and the important factors to keep in mind when building a multi-factor portfolio.
A Look at Some Alternative Ways to Manage Risk
Here are some interesting risk management strategies we track and some of the pros and cons of each.
Psychology and COVID-19 with Dr. Daniel Crosby
In this week’s episode we shift gears a little from our usual investing focus. We wanted to spend some time talking about the current COVID-19 crisis and its impact on all of us as people.
The Limits to Lessons from Past Bear Markets
We discuss the dangers of trying to compare the current bear market to past declines, and compare and contrast some historical bear markets with what is going on now.
The Dangers of Hindsight Bias
In this episode, we discuss the challenge of analyzing the current market environment and how what might seem obvious in retrospect is far from it today.
Interview: Value Investing with Tobias Carlisle
We sit down with Tobias Carlisle to talk about value investing in today’s market. He is the author of four books on value, including the Acquirer’s Multiple
Learning from Buffett and Others During Market Crises
While no one has the answers to how deep this downturn will be and how far stocks will fall, there have been other market crises in the past. Leaning on the wisdom of great investors, particularly during times such as these, can help give us the conviction to make it through.
Some Thoughts on Market Panics
In this episode, we talk about some important lessons to keep in mind during market panics and some strategies investors can use to manage them.
Five Questions: The Future of Asset Management with Meb Faber
Meb Faber and his team have built Cambria into a $700 million+ asset management firm during a period where many small managers have been struggling.
The Pros and Cons of Trend Following
To say that the track record of market timers in general is dismal would be an understatement. There are so many factors that impact market returns that getting them all right is next to impossible. And even if you do, figuring out what is and is not already priced in can be an equally fruitless exercise.
The Dangers of Headline Investing
The recent market sell off related to the Coronavirus has many investors worried. And with good reason. When panics like this set in, we all tend to focus on worst case scenarios and want to take action in response.
The Mechanics of Value Investing
In this episode, Jack and Justin, partners at Validea, talk about the mechanics of systematic value investing and the many decisions that go into constructing a value portfolio.
Some Thoughts on the Struggles of Factor Investing in the Past Decade
The Importance of the Sector Story
The Elusive Definition of Risk
Risk is one of the most challenging concepts to define in investing. There are countless ways to measure it and a myriad of opinions on the proper way to evaluate it. And the debate over risk is not some theoretical academic debate that doesn’t impact everyday investors.
Learn from Peter Lynch but Don’t Think You Can Replicate Him
Lessons From Our Most Read Five Questions Interviews
Now that we have completed our first year, I thought it might be interesting to take a look back at our most popular interviews and some of the important lessons that I learned from them. Below are our five most read interviews from our first year and the key lesson I took from each of them.
The Danger of Overscrutinizing Out of Favor Investment Metrics
No investing factor has been maligned more than the Price/Book in recent years. In a period where value in general has performed very poorly, the Price/Book has struggled more than any of the other common value factors. When you couple that with the fact that the Price/Book’s failure to account for intangible assets makes its validity questionable in a world where more than 80% of assets are intangible, you have a perfect storm for investors challenging the long-term validity of the factor.