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Stick with value investing (or index investing if you don't have the skill/discipline/time for it).
by IBM 13y ago
Stick with value investing (or index investing if you don't have the skill/discipline/time for it).
- deleted 13y ago[deleted]
- gnaritas 13y agoIn other news, the sky is blue. C'mon man, make a useful comment about the site, not just some generic and completely unrelated investment advice.
- minimax 13y agoYou could try and write an algo that would carry out your value investing strategy. You could trawl Yahoo for P/E or whatever value metrics you want to look at buy or sell based on certain thresholds.
- gbasin 13y agoSuccessfully implementing a value strategy cannot be codified into an algo EDIT: There are just too many exceptions and nuances. Every single investment involves more exceptions and nuances that would need to be coded. And if you don't think so, I would bet you don't have alpha :)
- nissimk 13y agoI guess I'm agreeing with your statement "Successfully," but it doesn't mean it hasn't been tried: http://www.jatit.org/volumes/Vol51No1/24Vol51No1.pdf http://www.jatit.org/volumes/Vol51No1/24Vol51No1.pdf Also, weren't the quant funds that were involved in the summer 2007 blowup all running automated value strategies based on Fama+French factor models? It works really great until it doesn't.
- gbasin 13y agoOh plenty of tryers. Value investing is a lot harder than it looks. And what you're talking about isn't really the definition of value investing (like graham-dodd + infinite details on the individual companies). Those quant funds were running factor models and mid-frequency stat arb
- marvin 13y agoWhat makes value investing better than index investing? Surely if it is statistically impossible to beat the market on a risk-adjusted basis over time, this also applies to value investing.