The Stingy News Weekly: 05/30/2021
Value and momentum investing
"This article examined a common question - for Value and Momentum Investing, what is the best way to combine factors? While not the first article on the topic, we provide another set of insights. When examining mid-cap and large-cap stocks in both the U.S. and international markets, and keeping the number of stocks in the portfolio the same, more concentrated portfolios historically had higher returns in the 'Separate, then combined' Portfolio as opposed to the 'Combined-signal Portfolio.' In the U.S., as one adds more stocks, the return differential gets smaller. Last, from a risk-adjusted returns perspective, there is no clear-cut winner/loser." [Value Investing]
How boom turned to bust
"Over the last 30 years, a buy-and-hold strategy in commodities underperformed the S&P 500 by 10% and the classic 60/40 portfolio by 9%, while also enduring colossal drawdowns and significantly more volatility." [Markets]
"The lines have blurred between what constitutes an index and what is simply another active investment strategy" [Indexing]
How to do long term
"Long-term thinking is easier to believe in than accomplish. Most people know it's the right strategy in investing, careers, relationships - anything that compounds. But saying 'I'm in it for the long run' is a bit like standing at the base of Mt. Everest, pointing to the top, and saying, 'That's where I'm heading.' Well, that's nice. Now comes the test." [Behaviour]
"It takes a new influencer about six months to hit their peak. From then on their active follower base steadily declines with a half life of about 12 months or so. For you, as a parent, this means that once your offspring decides to become an influencer, your best bet is to expect that in three years. time they will be living in your basement again." [Media]
A bad time to be a homebuyer
"Because houses are selling so quickly, buyers are having to make all kinds of concessions to get the place they want. People are waiving inspections, paying in all cash and offering well over asking price in many cases." [Real Estate]
Who invented Flamin' Hot Cheetos?
"We have interviewed multiple personnel who were involved in the test market, and all of them indicate that Richard was not involved in any capacity in the test market." [Management]
S&P/TSX60 Value Screens
DOW 30 Value Screens
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