Prof. Greenwald Video at Creighton Business School

Students ask questions of Value Investors

Prof. Greenwald discusses the inanities of using DCF; the lure of lottery ticket investing and the success of Columbia’s value investing students.

http://business.creighton.edu/news/creighton-vip-draws-financial-experts Scroll down and the video link (1 hours) is at the bottom of the page.

Buffett’s 13-F

http://sec.gov/Archives/edgar/data/1067983/000119312512234582/d352241d13fhr.txt

Joel Greenblatt’s Article on his Magic Formula

Go here and read several articles on Joel’s Magic Formula Investing: www.greenbackd.com

Joel’s Adding Your Two Cents May Cost You A Lot Over The Long-Term

 

One response to “Prof. Greenwald Video at Creighton Business School

  1. Agreed, Greenbackd has some very very interesting articles on MFI.

    There seems to be some quite contradictory things going on. Some articles suggest there is a small-cap effect – something that Greenblatt’s book denies. Other’s seem to have picked up a clutch of frauds or value traps in the small-cap arena (and value traps in the not-so-small caps). So there is a tension between buying with your eyes closed, versus buying with your eyes open.

    Some seem to conclude that EBIT/EV performs better in isolation – i.e. ignoring ROC – but ROC seems to reduce volatility and period of underperformance. It could be that EBIT/EV captures “value”, and ROC captures “growth”.

    As difficult as it is to define, I wonder to what extent the MFI benefits from “quality” companies as opposed to “contrarian” companies. In other words, is it the companies with limited downside (and moderate upside) that is driving performance, or the “fast and loose” (chinese RTOs, retailers written off as value traps, and soforth) that is driving return. I think that would be a very useful question to have answered. I accept postcard submissions 😉

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