Finance

How is a stock like an equity bond?

Warren Buffett described his philosophy of viewing stocks as ‘equity bonds’ in a 1977 Forbes magazine article and subsequently in a speech at Columbia Business School.  In her book, Warren Buffett and the Interpretation of Financial Statements, Mary Buffett attributes the concept to Buffett, which is interesting considering that the title of her book is […]

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Think like a hedge fund manager

I’ve been on an investing book kick lately, and I recently read Joel Greenblatt’s classic (from the 90s), You Can Be A Stock Market Genius.  Michael Lewis mentioned the book more than once in The Big Short, indicating that it was the manual for the handful of financial whizzes who predicted the near-collapse of capitalism

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Why do wages rise in a recession?

This morning, Rutgers University released its Labor Scorecard, which confirmed the high unemployment figures published by the Labor Department earlier this week.  Someone in the PR department at Rutgers caught this report on its way out the door and added a little spice to the press release, noting that “though unemployment has risen in 2009

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Is book value meaningless?

In Warren Buffett and the Interpretation of Financial Statements, the price to book ratio is not presented as a particularly useful metric for investors.  But studies show that stocks with low price to book values, when held for a long period of time, will outperform the market.  Who is right, the academics, or the billionaires?

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