#investment shares StockPicks

[stockxpo]

Value vs. Growth Stocks: What’s the Difference and Which One Should You Invest ??

When it comes to investing in stocks, there are various strategies and approaches that investors can employ. Two popular investment styles are value investing and growth investing. Understanding the difference between these two approaches is essential for making informed investment decisions. In this blog, we will delve into the characteristics of value and growth stocks, explore their differences, and help you determine which one aligns with your investment goals.

Value Stocks: Uncovering Hidden Gems

Value stocks are companies that are considered undervalued by the market, trading at prices lower than their intrinsic value. These stocks often have stable earnings, pay dividends, and possess solid fundamentals. Value investors typically focus on identifying stocks with low price-to-earnings (P/E) ratios, low price-to-book (P/B) ratios, or other valuation metrics that suggest the stock is priced lower than its actual worth. Value stocks may include mature companies in established industries that may have experienced temporary setbacks or are overlooked by the market.

Top of Form

Bottom of Form

Key Characteristics of Value Stocks:

Low valuation metrics: Value stocks often have low P/E ratios, P/B ratios, or other valuation metrics compared to their industry peers.

Dividend payments: Many value stocks are known for their consistent dividend payments, making them attractive to income-focused investors.

Established companies: Value stocks are typically found in well-established industries, where companies have a long history and solid track records.

Potential for turnaround: Value investing involves identifying companies with potential for a turnaround or market correction, where their true value may be unlocked over time.

Growth Stocks: Investing in the Future

Growth stocks, on the other hand, are companies that exhibit strong growth potential, often characterized by above-average revenue and earnings growth rates. These companies typically reinvest their earnings back into the business to fuel expansion, rather than paying dividends. Growth investors seek companies that are at the forefront of innovation, disruptive technologies, or emerging industries, with the expectation that their earnings and stock prices will rise substantially in the future.

Key Characteristics of Growth Stocks:

High revenue and earnings growth: Growth stocks typically demonstrate above-average revenue and earnings growth rates compared to their peers and the overall market.

Limited or no dividends: Instead of distributing profits as dividends, growth companies reinvest earnings into research, development, and expansion.

Technological or industry disruptors: Growth stocks are often associated with companies leading the charge in innovative sectors or disrupting traditional industries.

High valuations: Due to their growth potential, growth stocks may trade at higher P/E ratios and valuation multiples compared to their current earnings.

Which Should You Invest In: Value or Growth?

Deciding whether to invest in value or growth stocks depends on your investment objectives, risk tolerance, and investment horizon. Both approaches have their merits:

Value stocks can offer stability, income potential, and the opportunity to buy companies at a discount. They are favored by conservative investors seeking established companies with solid fundamentals and attractive dividend yields.

Growth stocks, on the other hand, offer the potential for significant capital appreciation. They are suitable for investors with a higher risk appetite, a long-term investment horizon, and an interest in innovative industries and emerging trends.

Some investors choose to maintain a balanced portfolio that includes both value and growth stocks, diversifying their risk and capitalizing on opportunities across different market segments.

Ultimately, the decision between value and growth investing comes down to your personal financial goals, investment strategy, and risk tolerance. It is advisable to consult with a financial advisor or conduct thorough research before making any investment decisions.

Conclusion:

Value and growth investing represent distinct approaches to stock selection, each with its own set of characteristics and potential rewards. Value investing focuses on finding undervalued companies with solid fundamentals and stable earnings, while growth investing targets companies with high growth potential and innovation. The choice between value and growth stocks ultimately depends on your investment objectives, risk tolerance, and time horizon.

I hope you have received all of the necessary information, for additional information, please see our blog area

[avidtrader]

Super Hot Stock Looks Primed For The Next Leg Up

💥Super Hot Stock Looks Primed For The Next Leg Up💥 https://www.youtube.com/watch?v=yPLcKjsqH9g Another update on this hot biotech stock that looks ready to take the next leg up. This is a common trend in the small caps where we see solid fundamental companies get beaten down, undervalued and present an opportunity for a big reversal. We just saw Chromadex CDXC run over 150% in less than a month after cracking a two year high in price. 👉https://youtu.be/88gSFaPzsvU Overall volume (shares traded) and liquidity (dollar amount traded) is at 1-2 year highs which proves there is strong buying demand in the marketplace. ✅ Time Stamps 0:00 Super Hot Stock 0:53 $3-5 Price Target?? 1:08 Bullish Trend (S/R Flip) 1:32 15 Min Chart Observation (Resistance) 2:19 Opportunity For Huge Reversal 2:48 Potential Dilution, Shares Outstanding 3:12 Cash Position, Need For Capital 3:42 Stock Performance Past Year, Quarter, Month. ✅ Subscribe To My Channel For More Videos: https://www.youtube.com/@AvidTrader/?sub_confirmation=1 ✅ Stay Connected With Me: 👉 (X)Twitter: https://twitter.com/RealAvidTrader 👉 Stocktwits: https://ift.tt/TI17Ja0 👉 Instagram: https://ift.tt/Vua7CSl ============================== ✅ Other Videos You Might Be Interested In Watching: 👉 The ULTIMATE Guide to Finding Hidden Gem Stocks | AvidTrader https://youtu.be/pZAKJLk9o0I 👉 How FDA Approval Could Rocket This Penny Stock to New Heights | AvidTrader https://www.youtube.com/watch?v=42AI9djkN0s 👉 Bitcoin Halving's Impact on Crypto Mining: What to Expect | AvidTrader https://www.youtube.com/watch?v=H9jIDKFNUlg 👉 How to Make Big Profits with Short Squeeze Stocks: A Comprehensive Trading Strategy | AvidTrader https://www.youtube.com/watch?v=59q6XeOlzas ============================= ✅ About AvidTrader: Value Investor. Discussing Day & Swing Trades Also Long Term Investments! Stock Breakdowns. Grow Your Trading Account Effectively. Technical Analysis and Pattern Recognition. How to Make Money, But More Importantly Learning & Having Fun in The Process! Avid Trader is not a Series 7 licensed investment professional, but a digital marketing manager/content creator to publicly traded and privately held companies. Avid Trader receives compensation from its clients in the form of cash and restricted securities for consulting services. 🔔 Subscribe to my channel for more videos: https://www.youtube.com/@AvidTrader/?sub_confirmation=1 ===================== #stockstobuy #stockstowatch #stockstobuynow #stockstotrade #biotechstocks #smallcapstocks #stockpicks #stockanalysis #technicalanalysis #fundamentalanalysis #undervaluedstocks Disclaimer: We do not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of reading any of our publications. You acknowledge that you use the information we provide at your own risk. I am not a certified financial advisor and you must do your own research and due diligence before ever buying or selling a stock. never trade solely based on someone else's word or expectations of a stock! Copyright Disclaimer: Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use © AvidTrader via AvidTrader https://www.youtube.com/channel/UCK_XU3FW-ffEK8BG5EisnNA April 04, 2024 at 05:16AM

[usnewsper-business]

Top Stock Picks: Dollar Tree, Meta, and Tesla's Delivery Estimates #stockpicks #Tesladeliveryestimates

[familyfire2025]

You won't believe how Warren Buffett uses annual reports to make millions!

You won't believe how Warren Buffett uses annual reports to make millions! https://www.youtube.com/watch?v=U4Dm_gJU5E4 Discover the secrets of Warren Buffett's investment success! In this eye-opening video, we reveal how the legendary investor uses annual reports to make millions in the stock market. Don't miss this valuable insight into Buffett's strategy! 🔔Ready to achieve Financial Independence by 2025? Click 'Subscribe' and embark on a transformative journey with us: https://www.youtube.com/@family.fire.by.2025 ✅ For Business Inquiries: ikarishingi@gmail.com ============================= ✅ Recommended Playlists 👉 Financial Independence Facts https://www.youtube.com/watch?v=OSsqUU0UnJ8&list=PLFbNQzXkUGyw0P-rfVrdiC4-ph8ky3uL_&pp=iAQB 👉 Financial Independence https://www.youtube.com/watch?v=VG-32QwZ1T0&list=PLFbNQzXkUGyytYLW5TZHFg_Kxdd-bEOfU&pp=iAQB ✅ Other Videos You Might Be Interested In Watching: 👉 Overcoming Money Setbacks Road to Financial Freedom!💰 https://www.youtube.com/watch?v=5avpEXdIbE8 👉 Supercharge Your F.I.R.E Journey: Unleashing the Power of Dividend Reinvestment! https://www.youtube.com/watch?v=1Jq-nmMxplU 👉 Stop Losing Money! How Lifestyle Inflation Erodes Your Financial Freedom https://www.youtube.com/watch?v=_uRVmjuZyWU 👉 A Surprising Way to Retire Early & Keep Your Luxury Life! Financial Independence Retire Early https://www.youtube.com/watch?v=w0GfswvQmrI 👉 Location is the Key to Financial Freedom--But How? Financial Independence Retire Early https://www.youtube.com/watch?v=SbGOvfoTptE ============================= ✅ About Family FIRE 2025. Welcome to "Family Fire 2025"! Join our Singaporean family's quest for Financial Independence Retire Early (F.I.R.E) by 2025. Our channel is your ultimate guide to understanding the F.I.R.E movement, achieving financial freedom, and exploring effective investment strategies, personal finance, budgeting, stock market investing, real estate, saving techniques, and essential financial tools. We're on a mission to educate and inspire you by sharing our family's journey toward financial independence and demonstrating how smart money habits can lead to a life free from financial stress. We believe everyone can achieve F.I.R.E. with dedication and the right knowledge. Subscribe to our channel, and let's ignite the F.I.R.E within you together! Let us embark on this transformative journey, empowering you to take control of your financial destiny and attain the freedom you've always desired. For Collaboration and Business inquiries, please use the contact information below: 📩 Email: ikarishingi@gmail.com 🔔From real estate to stock markets, discover the roadmap to financial freedom with us. Hit that subscribe button: https://www.youtube.com/@family.fire.by.2025 ================================= #WarrenBuffett #InvestmentStrategy #AnnualReports #StockMarket #ValueInvesting #FinancialWisdom #ProfitableInvesting #MoneyManagement #StockPicks #Buffettology #FinancialEducation #SmartInvesting #WealthBuilding #InvestorTips #MarketInsights Disclaimer: We do not accept any liability for any loss or damage incurred from you acting or not acting as a result of watching any of our publications. You acknowledge that you use the information we provide at your own risk. Do your research. Copyright Notice: This video and our YouTube channel contain dialog, music, and images that are the property of Family FIRE 2025. You are authorized to share the video link and channel and embed this video in your website or others as long as a link back to our YouTube channel is provided. © Family FIRE 2025 via Family FIRE 2025 https://www.youtube.com/channel/UCUbT9IupjUO551P-H-NAH1g October 21, 2023 at 10:00PM

[thunderrabby-blog]

Peter Lynch Advised Against Speculating, Panicking, Predicting Markets

Peter Lynch Advised Against Speculating, Panicking, Predicting Markets

Peter Lynch shared a raft of investing advice in a rare interview in 2021. The legendary stockpicker warned against speculating or trying to predict the market’s direction. Investors should avoid panicking, do their own research, and cast a wide net, Lynch said. Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you’re on the…

[hbclife]

New short-format video app StockPick will highlight investing tips

New short-format video app StockPick will highlight investing tips

A new video-sharing app for self-directed investors will combine short-format, social media technology with high-quality crowd-sourced content to inform, educate, and elaborate on all things investing, including municipal bonds. A Wall Street version of TikTok, the new StockPick app will be targeted to everyone from experienced traders to the Gen Z and millennial investors age 35 and younger,…

[misentropy]

information production

Search matters in the early stages of economic development, when ideas are abundant, businesses are capital-intensive and savings are scarce. The late 19th century was such a time. In New York, Fleming’s hunting-ground, most bonds were for railroad companies. In Britain, brewers, distillers and miners were also thirsty for capital. In 1886 Guinness, a century-old beer company, raised £6m in London. A few years later shares in the Broken Hill Proprietary Mining Company (bhp), which began trading in Australia, were owned and exchanged in London.

When search works well and capital runs to “where there is most to be made of it”, relevant information is quickly reflected in asset prices. The case for index investing rests on the idea that the stockmarket is, in this sense, broadly efficient. Prices are set by informed buying and selling by active and engaged investors. But as more money goes to index funds, the market might become less efficient. Whether it does rests in theory on the quality of investors being displaced. If they are “noisy” active managers, who buy and sell on gut feel, expect more efficiency, not less. If they are farsighted stockpickers, the quality of market prices might suffer.

Some empirical studies hint at a problem. A paper in 2011 by Jeffrey Wurgler finds that whether a share is part of an index influences its price. Shares that are included in an index go up in value relative to similar shares that are not. When shares drop out of an index, they tend to fall disproportionately. And once in the index, a share’s price moves more in sympathy with others that are also included. Another paper, by researchers at the University of Utah, finds that index inclusion leads to a higher correlation with index prices. Inclusion also spurs a reduction in “information production”: fewer requests for company filings, fewer searches on Google, and fewer research reports from brokerages. Even so, the authors conclude that more intensive effort by the remaining active investors may counter any adverse effects.

// Source

[11graphs]

Monthly Dividend Blue Chip Stock Portfolio

Building a monthly dividend income stream can be achieved with just 3 stocks! Today we present you one made up of 3 U.S. Blue Chip stocks.

Merck is an American multinational pharmaceutical company and one of the largest pharmaceutical companies in the world. Merck is incorporated in New Jersey.

Verizon Communications is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is based at 1095 Avenue of the Americas in Midtown Manhattan, New York City, but is incorporated in Delaware.

Broadcom is an American designer, developer, manufacturer and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings serve the data center, networking, software, broadband, wireless, and storage and industrial markets. - *Remember this isn't investment advice, just general information only. Any investing involves risks.* - ❤️ Like | 👇 Save | 📣 Share | 💬 Comment 🏆 Many thanks for your support 🏆 - 👉Follow @11Graphs for more👈 👉Follow @11Graphs for more👈

#smartinvestor #smartinvestors #stockinvesting #stocksignals #stockstowatch #stockpicks #investmentideas #investingideas #investorshub #investmentopportunities #sharemarket #equities #stockstrader #warrenbuffett #valueinvesting #investmentopportunity #investorlife #stockmarkets

[gardening01]

Enlightening the Garden Path

Kindly visit MIT's new website page composed explicitly for arising supervisors, a key segment we need to reach, help, and contribute. directors 

Kindly likewise visit https://emergingmanagers.org/, another site page we made to present extra substance relating on beginning a stockpicking firm. 

Note: this article is composed in view of public market stockpickers and probably won't sound good to the individuals who accomplish something else 

We had a discussion with one of our administrators a couple of years prior about how we could deal with be all the more comprehensively accommodating to arising chiefs. 

His reaction grabbed our eye: One of the most important things you can do is enlighten the nursery way. You need to help individuals see what is truly conceivable, and afterward it is dependent upon them to do it. 

What he implied was that there is a demonstrated however offbeat way to beginning and dealing with a stockpicking store, yet it isn't pretty much as noticeable as the traditional way, so many think the ordinary way is the lone way. The offbeat way ordinarily includes dispatches with no show and a tad of capital figured out from companions, family and a couple of guides. It frequently includes dispatching the asset before you have gathered the customary very much cushioned resume. 

To enlighten the nursery way, MIT ought to be sharing examples of overcoming adversity of a portion of the numerous individuals who went down the capricious way and made it work, so that individuals realize it very well may be done and begin to perceive how to do it. That is by and large what I am here to do! 

We ordinarily hear individuals tell supervisors that you can't begin a little speculation organization today, as Buffett did during the 1950s. Guideline is excessively substantial. Expenses are excessively high. You must be running $100 million just to equal the initial investment. LPs won't ever contribute with somebody without a 10 man administrative center, a multitude of examiners, and office space in a Manhattan tall building. 

*Wrong!* 

Here are some genuine instances of MIT's financial backer accomplices that began with humble AUM, zeroed in on intensifying capital, and persistently developed AUM naturally and through verbal references. We can't share names for classification reasons, yet we needed to share their accounts so you see that it tends to be finished. 

1. Two accomplices situated in the U.S. who began their speculation organization as students in school and have overseen it for a very long time from that point onward. At the point when we met them ten years prior, they had $20 million of AUM and had procured outstanding total returns through a period which incorporated the monetary emergency. We contributed $5 million at first, and have been accomplices for more than 8 years. They have compounded at unprecedented rates for us, and delivered a huge number of dollars of benefits. The accomplices are in their mid 30s and are simply beginning. At no time did they market their organization, and the entirety of their new financial backer accomplices drop by listening in on others' conversations references. 

2. A solitary portfolio director, with one examiner, situated in the U.S. who established his firm in the mid 2010s. At the point when we met, he had roughly $70 million of AUM and had intensified his financial backers' cash above 20% per annum for quite a while. We put $10 million at first in 2015. He has intensified MIT's capital at likewise excellent rates for almost 5 years, and we have a huge number of dollars contributed with him, quite a bit of which is benefits. While he didn't have a lot of karma advertising his asset given his flighty methodology, capital from MIT and natural compounding has carried him to a huge degree of AUM.  Landscaping

3. A solitary portfolio supervisor, without any investigators, situated in the U.S. who established his firm during the 2000s in the wake of moving on from business college. He never promoted his asset (and truth be told turned down a few LPs he didn't consider were a decent qualified for his methodology) however we were alluded to him by a common colleague who suggested him profoundly. He oversaw around $7 million in absolute when we met him in the mid 2010s, however has quietly developed AUM to a huge number of dollars by an even blend of compounding and persistently gathering outstanding accomplices. Since beginning he has procured sound mid-teenagers returns. 

4. A solitary portfolio chief, without any investigators, situated in the U.K. who established his firm in his mid 20s with GBP 5 million out of 2014. We met him only preceding his dispatch, and contributed not long after. A patient and profoundly specific expansion of accomplices, in addition to exceptionally solid paces of compounding, have expanded his AUM multiple significant degrees since we contributed. Regardless of the expansion in AUM, the future looks significantly more brilliant for the firm given the nature of the LP base, the healthy degrees of AUM notwithstanding solid compounding, the versatility of the system, and the age of the sole PM.

[bamboosconsulting]

Disgraced British fund manager Neil Woodford says sorry for huge losses as he announces comeback

Disgraced British fund manager Neil Woodford says sorry for huge losses as he announces comeback Neil Woodford, the former U.K. star stockpicker whose investment firm collapsed in 2019, has said “sorry” to investors as he shared plans to make a comeback.

See https://is.gd/0iETag for more

[ericfruits]

Stewards’ inquiry

ROBERT FLEMING has a claim to be a pioneer of active asset management. His First Scottish investment trust pledged to invest mostly in American securities, with choices informed by on-the-ground research. Fleming saw that shareholders needed to act as stewards in the governance of the businesses that they part-owned. So once the fund was launched, in 1873, he sailed directly to America. It was the first of many fact-finding trips across the Atlantic over the next 50 years, according to Nigel Edward Morecroft’s book, “The Origins of Asset Management”.

The art of asset management is capital allocation. It is easy to miss this amid confusing talk of alpha and beta, active and passive, private and public markets. For investors of Fleming’s kind the work of finding the best investment opportunities and engaging with business was inseparable. Walter Bagehot believed the rapid growth of the mid-Victorian economy owed much to the efficient channelling of capital. In England, he wrote, “Capital runs as surely and instantly where it is most wanted, and where there is most to be made of it, as water runs to find its level.”

Most of today’s financiers will say they are engaged in capital allocation. There are many dedicated stockpickers who take this social role seriously and see it as a vocation. But for the most part ties between suppliers and users of capital have become more tenuous. An index fund does not screen the best stocks from the worst. It holds whatever is in the index. Other passive strategies select stocks or bonds based on narrow financial characteristics. The nature of the entity behind the securities and how well the people running it perform their duties are incidental. Does such disengagement matter? Some evidence suggests that it might.

To understand why, it helps to distinguish two functions of capital allocation. The first is to direct savings to their best use. This involves finding new opportunities, comparing their merits and deciding which should receive capital and on what terms. John Kay, a business economist, calls this role “search”. The second role is stewardship, ensuring that the best use is made of the capital stock that is the product of past investment.

Both matter. Search matters in the early stages of economic development, when ideas are abundant, businesses are capital-intensive and savings are scarce. The late 19th century was such a time. In New York, Fleming’s hunting-ground, most bonds were for railroad companies. In Britain, brewers, distillers and miners were also thirsty for capital. In 1886 Guinness, a century-old beer company, raised £6m in London. A few years later shares in the Broken Hill Proprietary Mining Company (BHP), which began trading in Australia, were owned and exchanged in London.

When search works well and capital runs to “where there is most to be made of it”, relevant information is quickly reflected in asset prices. The case for index investing rests on the idea that the stockmarket is, in this sense, broadly efficient. Prices are set by informed buying and selling by active and engaged investors. But as more money goes to index funds, the market might become less efficient. Whether it does rests in theory on the quality of investors being displaced. If they are “noisy” active managers, who buy and sell on gut feel, expect more efficiency, not less. If they are farsighted stockpickers, the quality of market prices might suffer.

Some empirical studies hint at a problem. A paper in 2011 by Jeffrey Wurgler finds that whether a share is part of an index influences its price. Shares that are included in an index go up in value relative to similar shares that are not. When shares drop out of an index, they tend to fall disproportionately. And once in the index, a share’s price moves more in sympathy with others that are also included. Another paper, by researchers at the University of Utah, finds that index inclusion leads to a higher correlation with index prices. Inclusion also spurs a reduction in “information production”: fewer requests for company filings, fewer searches on Google, and fewer research reports from brokerages. Even so, the authors conclude that more intensive effort by the remaining active investors may counter any adverse effects.

Share prices may no longer matter so much for how capital is allocated. Most big companies are nowadays self-financing. Guinness (now Diageo) and BHP are still among the leading stocks listed in London. Like a lot of businesses, they generate enough cash to cover their investment needs. When a company taps the capital markets, it is usually to tidy up its capital structure (lengthening the maturity of debt, say, or buying back shares) or to build cash reserves in times of stress, such as now. It is management teams that now do most to allocate capital.

This makes stewardship more important. When it works, investors engage with a firm’s managers to verify that the business is well run. The problem is that the incentives to be good stewards are weak. An asset manager that bears the cost of stewardship will capture only a small share of the benefits. A paper in 2017 by Lucian Bebchuk, Alma Cohen and Scott Hirst, a trio of law professors, found that asset managers mostly avoid making shareholder proposals, nominating directors or conducting proxy contests to vote out managers. Index funds are especially at fault. Their business model is to avoid the costs of company research and deep engagement. The law professors reckoned that the big three asset managers devoted less than one person-workday a year to stewardship.

Bosses and agents

The growth of index investing is likely to have raised the agency costs of asset management. Bosses may be either too timid or too lax, depending on the circumstances, to act in the best interest of shareholders. They may shun profitable projects because it is hard to persuade disengaged owners that the rewards justify the risks. Or they may be careless with shareholders’ money. Some research finds passive ownership aggravates these problems. A paper by Philippe Aghion, John Van Reenen and Luigi Zingales finds that companies with a larger share of active owners are more innovative. They find no such link between index ownership and innovation. Other research suggests that indexing makes it more likely that managers will pursue ill-judged mergers.

Investors now care more about what they are investing in. The growth of environmental, social and governance (ESG) investing, which selects companies on how they score on such matters, reflects this. Some asset managers suspect ESG is a fad, but many do not. An ESG score will soon be a requirement, says one. It will eventually be as important to a firm as its credit rating, says another. “Sustainability” is increasingly seen as a risk factor for long-term performance. “If your firm is more sustainable, you will get the best people, customers and regulators,” says Christian Sinding, boss of EQT, a Swedish private-equity firm. These are the firms you will want to own in ten years’ time, he adds.

ESG looks like a lifeline for active fund managers. “Active has a big advantage over passive when it comes to ESG,” says Ashish Bhutani, chief executive of Lazard Asset Management. Passive funds can only tick boxes. Some environmental matters, such as a firm’s carbon footprint, can be quantified, but others cannot. The social criterion requires qualitative judgment about a firm’s hiring practices, its efforts to reduce inequality or the broader impact of investment projects. Governance is somewhere in between. Good analysts have a deep knowledge of companies and their management. They know things that are hard to quantify and cannot be found on a financial statement or a boilerplate disclosure.

The challenge for active managers is to show that sifting firms by ESG or any other qualitative criteria will make for better portfolios that justify a fee premium over an index fund. A greater focus on the long term would be welcome for both companies and their shareholders. It is a stretch to claim that active managers in the main are great stewards. They are not. Most are (or at least have been) either transient owners, trading in and out of faddish stocks, or closet index-huggers.

The best-performing stockpickers are both patient and strong in their convictions. They hold stocks for long periods in a concentrated portfolio. It is in part a quest for these traits—commitment and patience—that has persuaded a lot of investors to flock into private equity and other closely held assets.■

Asset Management the money doctors

This article appeared in the Special report section of the print edition under the headline "Stewards’ inquiry"

https://ift.tt/3ngn9xc

[avidtrader]

2X Stock Gaining LOTS of Momentum Right Now

2X Stock Gaining LOTS of Momentum Right Now 👀 https://www.youtube.com/watch?v=8pOxO_5MZGg Today we show you a super interesting small cap biotech, only 2 million shares outstanding! Crazy tight, one point eight million share float, has been exploding over the past few months up nearly two hundred percent gains. Retail is watching and traders are keeping this on their radar as a potential stock to buy. Check below for all of the links! ✅ Video Links XRTX Dilution Tracker https://ift.tt/CkqxAiQ XORTX Therapeutics Website https://www.xortx.com/ FINVIZ https://ift.tt/4hoPzEI Company Presentation https://ift.tt/PR2vJDn XRTX Wall Street Forecasts https://ift.tt/7oROnNh ✅ Subscribe To My Channel For More Videos: https://www.youtube.com/@AvidTrader/?sub_confirmation=1 ✅ Stay Connected With Me: 👉 (X)Twitter: https://twitter.com/RealAvidTrader 👉 Stocktwits: https://ift.tt/logq7rV 👉 Instagram: https://ift.tt/4nSVCFX ============================== ✅ Other Videos You Might Be Interested In Watching: 👉 The ULTIMATE Guide to Finding Hidden Gem Stocks | AvidTrader https://youtu.be/pZAKJLk9o0I 👉 How FDA Approval Could Rocket This Penny Stock to New Heights | AvidTrader https://www.youtube.com/watch?v=42AI9djkN0s 👉 Bitcoin Halving's Impact on Crypto Mining: What to Expect | AvidTrader https://www.youtube.com/watch?v=H9jIDKFNUlg 👉 How to Make Big Profits with Short Squeeze Stocks: A Comprehensive Trading Strategy | AvidTrader https://www.youtube.com/watch?v=59q6XeOlzas ============================= ✅ About AvidTrader: Value Investor. Discussing Day & Swing Trades Also Long Term Investments! Stock Breakdowns. Grow Your Trading Account Effectively. Technical Analysis and Pattern Recognition. How to Make Money, But More Importantly Learning & Having Fun in The Process! Avid Trader is not a Series 7 licensed investment professional, but a digital marketing manager/content creator to publicly traded and privately held companies. Avid Trader receives compensation from its clients in the form of cash and restricted securities for consulting services. 🔔 Subscribe to my channel for more videos: https://www.youtube.com/@AvidTrader/?sub_confirmation=1 ===================== #stockanalysis #smallcapstocks #stockpicks #stockstobuy #bullish #stockbreakout #biotechstocks #technicalanalysis #tradingstrategies #tradingtips #makemoney Disclaimer: We do not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of reading any of our publications. You acknowledge that you use the information we provide at your own risk. I am not a certified financial advisor and you must do your own research and due diligence before ever buying or selling a stock. never trade solely based on someone else's word or expectations of a stock! Copyright Disclaimer: Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use © AvidTrader via AvidTrader https://www.youtube.com/channel/UCK_XU3FW-ffEK8BG5EisnNA March 15, 2024 at 06:36AM

[usnewsper-business]

Top Stock Picks: Dollar Tree, Meta, and Tesla's Delivery Estimates #stockpicks #Tesladeliveryestimates

[familyfire2025]

Uncovering Hidden Gems: Invest Smarter and Make Big Money | Family FIRE 2025

Uncovering Hidden Gems: Invest Smarter and Make Big Money | Family FIRE 2025 https://www.youtube.com/watch?v=rrT5M-Q3cAY 🚀 Ready to unlock the secrets of smart investing and discover hidden gems in the world of finance? 🌟 Join us as we delve into the strategies and insights that can help you make big money in the market. From lesser-known stocks to unconventional investment approaches, we've got you covered. Don't miss out on this journey to financial success. Hit that 'Subscribe' button and let's start investing smarter together! 💰💡 🔔Ready to achieve Financial Independence by 2025? Click 'Subscribe' and embark on a transformative journey with us: https://www.youtube.com/@family.fire.by.2025 ✅ For Business Inquiries: ikarishingi@gmail.com ============================= ✅ Recommended Playlists 👉 Financial Independence Facts https://www.youtube.com/watch?v=OSsqUU0UnJ8&list=PLFbNQzXkUGyw0P-rfVrdiC4-ph8ky3uL_&pp=iAQB 👉 Financial Independence https://www.youtube.com/watch?v=VG-32QwZ1T0&list=PLFbNQzXkUGyytYLW5TZHFg_Kxdd-bEOfU&pp=iAQB ✅ Other Videos You Might Be Interested In Watching: 👉 Overcoming Money Setbacks Road to Financial Freedom!💰 https://www.youtube.com/watch?v=5avpEXdIbE8 👉 Supercharge Your F.I.R.E Journey: Unleashing the Power of Dividend Reinvestment! https://www.youtube.com/watch?v=1Jq-nmMxplU 👉 Stop Losing Money! How Lifestyle Inflation Erodes Your Financial Freedom https://www.youtube.com/watch?v=_uRVmjuZyWU 👉 A Surprising Way to Retire Early & Keep Your Luxury Life! Financial Independence Retire Early https://www.youtube.com/watch?v=w0GfswvQmrI 👉 Location is the Key to Financial Freedom--But How? Financial Independence Retire Early https://www.youtube.com/watch?v=SbGOvfoTptE ============================= ✅ About Family FIRE 2025. Welcome to "Family Fire 2025"! Join our Singaporean family's quest for Financial Independence Retire Early (F.I.R.E) by 2025. Our channel is your ultimate guide to understanding the F.I.R.E movement, achieving financial freedom, and exploring effective investment strategies, personal finance, budgeting, stock market investing, real estate, saving techniques, and essential financial tools. We're on a mission to educate and inspire you by sharing our family's journey toward financial independence and demonstrating how smart money habits can lead to a life free from financial stress. We believe everyone can achieve F.I.R.E. with dedication and the right knowledge. Subscribe to our channel, and let's ignite the F.I.R.E within you together! Let us embark on this transformative journey, empowering you to take control of your financial destiny and attain the freedom you've always desired. For Collaboration and Business inquiries, please use the contact information below: 📩 Email: ikarishingi@gmail.com 🔔From real estate to stock markets, discover the roadmap to financial freedom with us. Hit that subscribe button: https://www.youtube.com/@family.fire.by.2025 ================================= #Investing #FinancialSuccess #HiddenGems #SmartInvesting #WealthBuilding #InvestmentTips #StockMarket #ProfitPotential #InvestmentStrategies #MoneyManagement #MarketInsights #FinancialFreedom #EarningPotential #InvestmentAdvice #StockPicks Disclaimer: We do not accept any liability for any loss or damage incurred from you acting or not acting as a result of watching any of our publications. You acknowledge that you use the information we provide at your own risk. Do your research. Copyright Notice: This video and our YouTube channel contain dialog, music, and images that are the property of Family FIRE 2025. You are authorized to share the video link and channel and embed this video in your website or others as long as a link back to our YouTube channel is provided. © Family FIRE 2025 via Family FIRE 2025 https://www.youtube.com/channel/UCUbT9IupjUO551P-H-NAH1g September 30, 2023 at 10:00PM

[asfeedin]

ETFs have proved critics wrong during the crisis

In the decade since a 2008 crisis exacerbated by newfangled credit derivatives, exchange traded funds have often been flagged as the next area that would demonstrate the destructive power of financial innovation gone wrong. Many pointed to the potential for a liquidity mismatch in funds that offer equity-like ease of price discovery but may contain bundles of illiquid assets such as junk bonds. However, when placed under enormous strain over the past few months, ETFs have mostly managed to prove their critics wrong.

Exchange traded funds rocketed in popularity over the past decade. These low-cost products offered investors access to a long bull market in both equities and debt — undercutting traditional asset managers’ high fees and undermining their superior stockpicking claims. Professional traders, on the other hand, have fallen in love with how easy it is to trade broad baskets of securities. Normally, ETFs track an index of securities, granting investors cheap diversification but also creating the potential for a mismatch between the value of shares in the fund, which trade just like any other equity, and the underlying assets it owns.

In March, large gaps appeared in the pricing of fixed-income ETFs; funds were trading at below the value of the bonds they contained. One of the largest, which aims to track all US investment grade bonds, traded at a 6 per cent discount to the underlying assets.

ETFs rely on a group of “market makers” to arbitrage away differences between the two prices. If the fund is worth more than its holdings, these market makers can buy up more of the underlying assets and sell shares in the fund until the prices are brought into harmony. If the fund is worth less, they can perform the same trick in reverse.

Yet when bond markets froze this stopped. Stressed trading in everything from junk bonds to commercial paper and even Treasuries made it hard to gain a true price for the assets and market makers stepped back.

Investors and regulators should take these gaps with a pinch of salt. Price discovery is much easier in the ETFs; if dealers were able to sell the less liquid underlying bonds as easily as the funds, the gaps might not be so large, as the bonds’ prices would fall instead. The true underlying price of the bonds may have been a lot closer to the ETFs, which provided a way for traders to express a view on the market without having to deal in illiquid securities.

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It is illogical to expect ETFs to function perfectly when underlying markets are under strain. The Treasury and commercial paper markets, among the world’s most liquid, were likewise under pressure, with much greater impact on the wider economy.

The behaviour of oil ETFs during the recent sell-off is more concerning. While more liquid and standardised than many bonds, oil futures need to be rolled over so that ETFs do not take physical delivery of the commodity. This created a problem when prices fell into negative territory: the largest oil fund, USO, put further pressure on prices by selling short-term contracts to avoid paying for scarce storage. The ETF’s investors risked being wiped out altogether by the falls in price.

This is what investors accept when they buy risky assets, whether they are in an ETF wrapper or not. Regulators are right to be concerned about the potential for disruptive trading, and monitor any funds that have a disproportionate impact on the market, but there is no public duty to protect oil speculators — or equity investors — from losing money. ETFs are sold on their ability to mirror trends in their underlying assets. Investors should not be surprised when they do exactly that.

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[ericfruits]

Value investing is struggling to remain relevant

IT IS NOW more than 20 years since the Nasdaq, an index of technology shares, crashed after a spectacular rise during the late 1990s. The peak in March 2000 marked the end of the internet bubble. The bust that followed was a vindication of the stringent valuation methods pioneered in the 1930s by Benjamin Graham, the father of “value” investing, and popularised by Warren Buffett. For this school, value means a low price relative to recent profits or the accounting (“book”) value of assets. Sober method and rigour were not features of the dotcom era. Analysts used vaguer measures, such as “eyeballs” or “engagement”. If that was too much effort, they simply talked up “the opportunity”.

Plenty of people sense a replay of the dotcom madness today. For much of the past decade a boom in America’s stockmarket has been powered by an elite of technology (or technology-enabled) shares, including Apple, Alphabet, Facebook, Microsoft and Amazon. The value stocks favoured by disciples of Graham have generally languished. But change may be afoot. In the past week or so, fortunes have reversed. Technology stocks have sold off. Value stocks have rallied, as prospects for a coronavirus vaccine raise hopes of a quick return to a normal economy. This might be the start of a long-heralded rotation from overpriced tech to far cheaper cyclicals—stocks that do well in a strong economy. Perhaps value is back.

This would be comforting. It would validate a particular approach to valuing companies that has been relied upon for the best part of a century by some of the most successful investors. But the uncomfortable truth is that some features of value investing are ill-suited to today’s economy. As the industrial age gives way to the digital age, the intrinsic worth of businesses is not well captured by old-style valuation methods, according to a recent essay by Michael Mauboussin and Dan Callahan of Morgan Stanley Investment Management.

The job of stockpicking remains to take advantage of the gap between expectations and fundamentals, between a stock’s price and its true worth. But the job has been complicated by a shift from tangible to intangible capital—from an economy where factories, office buildings and machinery were key to one where software, ideas, brands and general know-how matter most. The way intangible capital is accounted for (or rather, not accounted for) distorts measures of earnings and book value, which makes them less reliable metrics on which to base a company’s worth. A different approach is required—not the flaky practice of the dotcom era but a serious method, grounded in logic and financial theory. However, the vaunted heritage of old-school value investing has made it hard for a fresher approach to gain traction.

Graham’s cracker

To understand how this investment philosophy became so dominant, go back a century or so to when equity markets were still immature. Prices were noisy. Ideas about value were nascent. The decision to buy shares in a particular company might by based on a tip, on inside information, on a prejudice, or gut feel. A new class of equity investors was emerging. It included far-sighted managers of the endowment funds of universities. They saw that equities had advantages over bonds—notably those backed by mortgages, railroads or public utilities—which had been the preferred asset of long-term investors, such as insurance firms.

This new church soon had two doctrinal texts. In 1934 Graham published “Security Analysis” (with co-author David Dodd), a dense exposition of number-crunching techniques for stockpickers. Another of Graham’s books is easier to read and perhaps more influential. “The Intelligent Investor”, first published in 1949, ran in revised editions right up until (and indeed beyond) Graham’s death in 1976. The first edition is packed with sage analysis, which is as relevant today as it was 70 years ago.

Underpinning it all is an important distinction—between the price and value of a stock. Price is a creature of fickle sentiment, of greed and fear. Intrinsic value, by contrast, depends on a firm’s earnings power. This in turn derives from the capital assets on its books: its factories, machines, office buildings and so on.

The approach leans heavily on company accounts. The valuation of a stock should be based on a conservative multiple of future profits, which are themselves based on a sober projection of recent trends. The book value of the firm’s assets provides a cross-check. The past might be a crude guide to the future. But as Graham argued, it is a “more reliable basis of valuation than some other future plucked out of the air of either optimism or pessimism”. As an extra precaution, investors should seek a margin of safety between the price paid for a stock and its intrinsic value, to allow for any errors in the reckoning. The tenets of value investing were thus established. Be conservative. Seek shares with a low price-earnings or price-to-book ratio.

The enduring status of his approach owes more to Graham as tutor than the reputation he enjoyed as an investor. Graham taught a class on stockpicking at Columbia University. His most famous student was Mr Buffett, who took Graham’s investment creed, added his own twists and became one of the world’s richest men. Yet the stories surrounding Mr Buffett’s success are as important as the numbers, argued Aswath Damodaran of New York University’s Stern School of Business in a recent series of YouTube lectures on value investing. The bold purchase of shares in troubled American Express in 1964; the decision to dissolve his partnership in 1969, because stocks were too dear; the way he stoically sat out the dotcom mania decades later. These stories are part of the Buffett legend. The philosophy of value investing has been burnished by association.

It helped also that academic finance gave a back-handed blessing to value investing. An empirical study in 1992 by Eugene Fama, a Nobel-prize-winning finance theorist, and Kenneth French found that volatility, a measure of risk, did not explain stock returns between 1963 and 1990, as academic theory suggested it should. Instead they found that low price-to-book shares earned much higher returns over the long run than high price-to-book shares. One school of finance, which includes these authors, concluded that price-to-book might be a proxy for risk. For another school, including value investors, the Fama-French result was evidence of market inefficiency—and a validation of the value approach.

All this has had a lasting impact. Most investors “almost reflexively describe themselves as value investors, because it sounds like the right thing to say”, says Mr Damodaran. Why would they not? Every investor is a value investor, even if they are not attached to book value or trailing earnings as the way to select stocks. No sane person wants to overpay for stocks. The problem is that “value” has become a label for a narrow kind of analysis that often confuses means with ends. The approach has not worked well for a while. For much of the past decade, value stocks have lagged behind the general market and a long way behind “growth” stocks, their antithesis (see chart 1). Old-style value investing looks increasingly at odds with how the economy operates.

In Graham’s day the backbone of the economy was tangible capital. But things have changed. What makes companies distinctive, and therefore valuable, is not primarily their ownership of physical assets. The spread of manufacturing technology beyond the rich world has taken care of that. Any new design for a gadget, or garment, can be assembled to order by contract manufacturers from components made by any number of third-party factories. The value in a smartphone or a pair of fancy athletic shoes is mostly in the design, not the production.

In service-led economies the value of a business is increasingly in intangibles—assets you cannot touch, see or count easily. It might be software; think of Google’s search algorithm or Microsoft’s Windows operating system. It might be a consumer brand like Coca-Cola. It might be a drug patent or a publishing copyright. A lot of intangible wealth is even more nebulous than that. Complex supply chains or a set of distribution channels, neither of which is easily replicable, are intangible assets. So are the skills of a company’s workforce. In some cases the most valuable asset of all is a company’s culture: a set of routines, priorities and commitments that have been internalised by the workforce. It can’t always be written down. You cannot easily enter a number for it into a spreadsheet. But it can be of huge value all the same.

A beancounter’s nightmare

There are three important aspects to consider with respect to intangibles, says Mr Mauboussin: their measurement, their characteristics, and their implications for the way companies are valued. Start with measurement. Accounting for intangibles is notoriously tricky. The national accounts in America and elsewhere have made a certain amount of progress in grappling with the challenge. Some kinds of expenditure that used to be treated as a cost of production, such as R&D and software development, are now treated as capital spending in GDP figures. The effect on measured investment rates is quite marked (see chart 2). But intangibles’ treatment in company accounts is a bit of a mess. By their nature, they have unclear boundaries. They make accountants queasy. The more leeway a company has to turn day-to-day costs into capital assets, the more scope there is to fiddle with reported earnings. And not every dollar of R&D or advertising spending can be ascribed to a patent or a brand. This is why, with a few exceptions, such spending is treated in company accounts as a running cost, like rent or electricity.

The treatment of intangibles in mergers makes a mockery of this. If, say, one firm pays $2bn for another that has $1bn of tangible assets, the residual $1bn is counted as an intangible asset—either as brand value, if that can be appraised, or as “goodwill”. That distorts comparisons. A firm that has acquired brands by merger will have those reflected in its book value. A firm that has developed its own brands will not.

The second important aspect of intangibles is their unique characteristics. A business whose assets are mostly intangible will behave differently from one whose assets are mostly tangible. Intangible assets are “non-rival” goods: they can be used by lots of people simultaneously. Think of the recipe for a generic drug or the design of a semiconductor. That makes them unlike physical assets, whose use by one person or for one kind of manufacture precludes their use by or for another.

In their book “Capitalism Without Capital” Jonathan Haskel and Stian Westlake provided a useful taxonomy, which they call the four Ss: scalability, sunkenness, spillovers and synergies. Of these, scalability is the most salient. Intangibles can be used again and again without decay or constraint. Scalability becomes turbo-charged with network effects. The more people use a firm’s services, the more useful they are to other customers. They enjoy increasing returns to scale; the bigger they get, the cheaper it is to serve another customer. The big business successes of the past decade—Google, Amazon and Facebook in America; and Alibaba and Tencent in China—have grown to a size that was not widely predicted. But there are plenty of older asset-light businesses that were built on such network effects—think of Visa and Mastercard. The result is that industries become dominated by one or a few big players. The same goes for capital spending. A small number of leading firms now account for a large share of overall investment (see chart 3).

Physical assets usually have some second-hand value. Intangibles are different. Some are tradable: you can sell a well-known brand or license a patent. But many are not. You cannot (or cannot easily) sell a set of relationships with suppliers. That means the costs incurred in creating the asset are not recoverable—hence sunkenness. Business and product ideas can easily be copied by others, unless there is some legal means, such as a patent or copyright, to prevent it. This characteristic gives rise to spillovers from one company to another. And ideas often multiply in value when they are combined with other ideas. So intangibles tend to generate bigger synergies than tangible assets.

The third aspect of intangibles to consider is their implications for investors. A big one is that earnings and accounting book value have become less useful in gauging the value of a company. Profits are revenues minus costs. If a chunk of those costs are not running expenses but are instead spending on intangible assets that will generate future cashflows, then earnings are understated. And so, of course, is book value. The more a firm spends on advertising, R&D, workforce training, software development and so on, the more distorted the picture is.

The distinction between a running expense and investment is crucial for securities analysis. An important part of the stock analyst’s job is to understand both the magnitude of investment and the returns on it. This is not a particularly novel argument, as Messrs Mauboussin and Callahan point out. It was made nearly 60 years ago in a seminal paper by Merton Miller and Francesco Modigliani, two Nobel-prize-winning economists. They divided the value of a company into two parts. The first—call it the “steady state”—assumes that that the company can sustain its current profits into the future. The second is the present value of future growth opportunities—essentially what the firm might become. The second part depends on the firm’s investment: how much it does, the returns on that investment and how long the opportunity lasts. To begin to estimate this you have to work out the true rate of investment and the true returns on that investment.

The nature of intangible assets makes this a tricky calculation. But worthwhile analysis is usually difficult. “You can’t abdicate your responsibility to understand the magnitude of investment and the returns to it,” says Mr Mauboussin. Old-style value investors emphasise the steady state but largely ignore the growth-opportunities part. But for a youngish company able to grow at an exponential rate by exploiting increasing returns to scale, the future opportunity will account for the bulk of valuation. For such a firm with a high return on investment, it makes sense to plough profits back into the firm—and indeed to borrow to finance further investment.

Picking winners in an intangible economy—and paying a price for stocks commensurate with their chances of success—is not for the faint-hearted. Some investments will be a washout; sunkenness means some costs cannot be recovered. Network effects give rise to winner-takes-all or winner-takes-most markets, in which the second-best firm is worth a fraction of the best. Value investing seems safer. But the trouble with screening for stocks with a low price-to-book or price-to-earnings ratio is that it is likelier to select businesses whose best times are behind them than it is to identify future success.

Up, up and away

Properly understood, the idea of fundamental value has not changed. Graham’s key insight was that price will sometimes fall below intrinsic value (in which case, buy) and sometimes will rise above it (in which case, sell). In an economy mostly made up of tangible assets you could perhaps rely on a growth stock that had got ahead of itself to be pulled back to earth, and a value stock that got left behind to eventually catch up. Reversion to the mean was the order of the day. But in a world of increasing returns to scale, a firm that rises quickly will often keep on rising.

The economy has changed. The way investors think about valuation has to change, too. This is a case that’s harder to make when the valuation differential between tech and value stocks is so stark. A correction at some stage would not be a great surprise. The appeal of old-style value investing is that it is tethered to something concrete. In contrast, forward-looking valuations are by their nature more speculative. Bubbles are perhaps unavoidable; some people will extrapolate too far. Nevertheless, were Ben Graham alive today he would probably be revising his thinking. No one, least of all the father of value investing, said stockpicking was easy. ■

This article appeared in the Briefing section of the print edition under the headline "Diminished value"

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