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Validea.com is an independent research firm offering stock analysis, screens and model portfolios based on the strategies of great investors. Our model portfolios select value, dividend and growth stocks based on our interpretation of the strategies of market legends, including Warren Buffett, Peter Lynch, Benjamin Graham, Kenneth Fisher, Martin Zweig, David Dreman, Joseph Piotroski and Joel Greenblatt. Interactive Brokers customers may sign up for a free trial in Account Management. Readers who are not customers of Interactive Brokers may click the following link to sign up for a risk-free trial.

Validea

June 30, 2020

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.

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Validea

June 16, 2020

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.

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Validea

June 9, 2020

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.

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Validea

May 26, 2020

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.

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Validea

May 19, 2020

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.

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Validea

May 14, 2020

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.

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Validea

April 14, 2020

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.

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Validea

March 24, 2020

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.

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Validea

March 17, 2020

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.

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Validea

March 9, 2020

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.

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Validea

March 3, 2020

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.

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Validea

February 25, 2020

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.

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Validea

February 4, 2020

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.

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Validea

January 14, 2020

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.

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Validea

December 17, 2019

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.

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