Yuval Taylor Blog | Talkmarkets | Page 1
Senior Editor at Chicago Review Press
Contributor's Links: Invest(igations)

Yuval Taylor is a writer and editor of non-fiction books about literature, performance, and music. In his spare time he invests, primarily in microcaps; investigates investment conundrums; and writes about his investigations on the site more

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Why Momentum Works
As a factor, momentum—the idea that a stock’s relative returns over the past six to twelve months have a tendency to persist over the next six to twelve months—has proved remarkably resilient.
How To Be A Great Investor, Part Eight: Know The Difference Between Information And Influence
Too many investors look only or primarily at the price of a stock. But because the price of a stock reflects a huge amount of information about it, it’s not going to give you many clues as to whether it’s going to rise or fall.
Misbehaving Factors
The conventional method of finding out whether or not a factor works is to look at the performance of the top (or bottom) ten or twenty percent of stocks ranked according to that factor and then subtract the bottom (or top) ten or twenty percent.
How To Be A Great Investor, Part Seven: Beware Of Behavioral Biases
Ten biases that are inimical to being a great investor.
Why Alpha Works—and A New Way Of Calculating It
Alpha has become the standard way to measure the active return of a portfolio: how much the portfolio outperformed the benchmark. Technically, however, it’s a point on a line, specifically the point where the line crosses the y axis.
How To Be A Great Investor, Part Six: Update Your Views Effectively
I only invested in companies with high ethical standards, without realizing that doing so would only hurt my own returns, not those of evil companies. I used stock screeners based on faulty data without thoroughly evaluating the stocks I was buying.
The Magic Of Combination
Unlike screening, ranking provides a great deal of flexibility.
How To Be A Great Investor, Part Five: Think Probabilistically
This article is the fifth in a ten-part series loosely based on Michael J. Mauboussin’s white paper “Thirty Years: Reflections on the Ten Attributes of Great Investors.”
How To Bet: Correlation, Mean Regression, Expected Returns, And Position Sizing
Understanding the rules of probability—how to bet—can be a valuable asset for investors.
HH Alphanomics: The Study Of Security Mispricing
Market efficiency, or so argue its proponents, is “an inevitable outcome of continuous arbitrage,” where arbitrage is defined as “trading aimed at profiting from imperfections in the current price.”
How To Be A Great Investor, Part Four: Compare Effectively
Using data, backtesting it, discovering properties and relationships, looking for causal factors—that is the best way to compare effectively.
How To Be A Great Investor, Part Three: Properly Assess Strategy
Every business has a strategy, a plan for beating its competitors. It’s a good idea for an investor to assess that strategy before investing in the company. But doing so is complicated.
Thirteen Rules For Winning The Investing Game
For me, the key to successful investing is to approach it like you would a game—a deadly serious game, but still a game.
How To Be A Great Investor, Part Two: Understand Value
Once you have figured out the intrinsic value of a company, you subtract its debt, preferred stock, and non-controlling interest, add its cash, and then divide that by the number of fully diluted shares. It’s really that simple.
How To Be A Great Investor: Be Numerate
Numeracy enables you to question established orthodoxy, whether that’s the price that the market assigns to a stock or a theory whose reasoning is flawed. And that is perhaps its most valuable function.
Why Refinancing Your Mortgage At A Lower Rate May Be A Bad Idea
The idea behind refinancing with a lower rate is to reduce your interest payments. That’s what a lower rate implies, and that’s how the mortgage companies package their offers. But that’s not what actually happens.
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