Discover and read the best of Twitter Threads about #ValuationDriven
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1/ Little v “value” vs Valuation Investing
Little v “value” investing focuses on buying cheap stocks Example: High B/P
Valuation investing focuses on buying undervalued, stocks trading below intrinsic value
Let’s explore the differences
#ValueInvesting
#ValuationDriven
🧵👇
Little v “value” investing focuses on buying cheap stocks Example: High B/P
Valuation investing focuses on buying undervalued, stocks trading below intrinsic value
Let’s explore the differences
#ValueInvesting
#ValuationDriven
🧵👇
2/ Little v “value” investing buys accounting variables such as book equity cheap relative to a stock’s price
But:
Value is monetary worth
Cheap is relatively low in cost
Little v “value” is Cheapness investing, not true Value investing
But:
Value is monetary worth
Cheap is relatively low in cost
Little v “value” is Cheapness investing, not true Value investing
3/ Cheapness investing spawned an industry through a seminal paper from Fama/French in 1992.
It documented amazing results to buying high book to price stocks from ‘63/‘91
In the study high b/p portfolios literally printed $
Trillions of $ chased the published results since
It documented amazing results to buying high book to price stocks from ‘63/‘91
In the study high b/p portfolios literally printed $
Trillions of $ chased the published results since
