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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 4, 2019

What Quant Value Models Can and Can’t Do for You

A few years ago Griffin wrote a very good piece — Ben Graham’s Value Investing ≠ Fama/French’s Factor Investing — explaining why buying stocks based on measures like book-to-market (the inverse of price-to-book) is nothing like the Ben Graham / intrinsic value way of investing.His comment and his previous piece got me thinking about how important it is to understand what quantitative value models can and can’t do.

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Validea

May 28, 2019

Differences in Value

As an investor, understanding why there can be such big differences between value portfolios can be a very important question to answer. To get at that answer, at least partially, I thought I’d look across the spectrum of value models run on Validea to see how value stock selection strategies can differ and what investors may be able to learn from this.

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Validea

May 14, 2019

Five More Questions: Factor Investing with Jim O’Shaughnessy

This is Part II of my interview with Jim O’Shaughnessy. If you missed Part I, you can find it here. In part II, we talk about trend following, the future for simple value investing, and we take an in depth look at some of the arguments others have made in favor of the death of value investing.

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Validea

April 30, 2019

The Mechanics of Value Investing

We all have a tendency to want to put investing strategies into groups. That can sometimes be misleading, though. There are more investment products than I can count that use the word value in their name. But beneath the surface, many of those products couldn’t be any more different. Those differences can lead to substantially different outcomes in both the long- and short-term, so it is very important to understand the investment process and parameters used to create any value portfolio before you invest in it. Since I often discuss value investing in my articles, I thought it might be helpful to take a step back and look at some of the important details to consider when building or analyzing any value strategy.

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Validea

April 23, 2019

Five Questions: An Academic Look At Factors With Lu Zhang

One of the major challenges that the finance community has faced over the years is how to explain what drives stock returns over time. If the market is efficient, then the only way to generate excess returns is to take more risk. But risk only makes sense to take if you get compensated for it. Determining which risks receive that compensation has been the subject of significant research in the academic community for many years.

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