The French saying
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The French saying: “The more it changes the more it’s the same thing.”

The French saying: “plus ça change, plus c’est la même chose” “The more it changes the more it’s the same thing.” I have always thought this motto applied to the stock market better than anywhere else. Now the really important part of this proverb is the phrase “the more it changes.” The economic world has changed […]

enterprise multiple
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Which price ratio outperforms the enterprise multiple?

Which price ratio outperforms the enterprise multiple? In their very recent paper, “Analyzing Valuation Measures: A Performance Horse-Race over the past 40 Years,” Wes Gray and Jack Vogel asked, “Which valuation metric has historically performed the best?“- Gray and Vogel examine a range of price ratios over the period 1971 to 2010: Earnings to Market […]

Few Quotes About Mr. Market
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Few Quotes About Mr. Market

Emotionally unstable, Mr. market veers from years of euphoria when he can see only the favorable possibilities of industries,companies, and their stocks to profound pessimism when he’s so depressed he can see nothing but trouble ahead. Mr. market persistently teases investors with gimmicks such as surprising earning, starting dividend announcements, sudden surges of inflation, inspiring […]

Trading Rules by Jesse Livermore
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Trading Rules by Jesse Livermore

Trading Rules by Jesse Livermore was famously profiled in the classic investing tome Reminiscences of a Stock Operator, a book that has been called the best trading book every written. Introduction to Jesse Livermore Jesse Livermore was born in Massachusetts, in 1877. By the age of fifteen he went to work in Paine Webber’s Boston brokerage office where […]

valueandprices
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The Group Fallacy in the Theory of Revolution (Professor Ellwood)

 The Group Fallacy in the Theory of Revolution.—    I wish now to call your attention to a theory which represents more nearly than the one just discussed a type of the group fallacy common in sociological writing. This is the formula for revolutions developed by Professor Ellwood.[7] At the outset, however, let me state that […]

valueandprices
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Biggest problem with Irrationality ( Behavioral Bias )

“Those who have knowledge, don’t predict. Those who predict, don’t have knowledge” ― Lao Tzu  Don’t Predict  In fact perhaps the biggest problem with Irrationality is that it covers such a vast range of behavioral issues  that it’s pretty much impossible to digest the whole thing. It’s not a book to be read in a single sitting.  To […]

valueandprices
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Retained Earnings: Warren Buffett’s Secret

One of the most important indicators of durable competitive advantage. Net earnings can be paid out as dividends, used to buy back shares or retained for growth.If the company loses more than it has accumulated, retained earnings is negative.If a company isn’t adding to its retained earnings, it isn’t growing its net worth.Rate of growth […]