Author: Yuval Taylor

I have been using a strictly quantitative process to buy and sell stocks for the last six years, with excellent results: I have a CAGR of 46% over that period, and have made over $3 million. In this series of articles, I’m going to give you a point-by-point method by…

Overview Analysts and investors have long puzzled over the difficulties of calculating the cost of equity. The cost of equity is an essential component of the cost of capital, and the cost of capital is essential if we want to know the present value of an investment. In this article,…

If you were given a crystal ball that would accurately predict a company’s growth over the next year, you would logically invest in those companies with the highest growth and short those with the lowest. Portfolio123 recently allowed this kind of crystal-ball prediction in its backtesting by allowing negative numbers…

Let’s say you believed that the higher the risk, the higher the reward. Let’s say you loved taking risks. Let’s say you participated in all the Red Bull–sponsored extreme sporting events you could, and you watched those you couldn’t participate in. And you drank their sodas like water, regardless of…

A few months ago three researchers published an astonishingly ambitious and compendious paper called “Is There a Replication Crisis in Finance?” (Their names are Theis Jensen, Bryan Kelly, and Lasse Pedersen; two are at the Copenhagen Business School, one is at Yale, and two also work for AQR Capital Management.)…

This article is the sixth in a series about screens designed by famous investors. The first, on Benjamin Graham, can be found here; the second, on William O’Neil, can be found here; the third, on Joel Greenblatt, can be found here; the fourth, on Ken Fisher, can be found here;…

The idea behind value investing is that you buy a stock well below its fair value, wait for it to appreciate to something close to its fair value, and then sell it. The natural questions, then, are: How long does this process take? How often does it actually happen? Why…

This article is the fourth in a series about screens designed by famous investors. The first, on Benjamin Graham, can be found here; the second, on William O’Neil, can be found here; the third, on Joel Greenblatt, can be found here; the fourth, on Ken Fisher, can be found here;…

This article is the fourth in a series about screens designed by famous investors. The first, on Benjamin Graham, can be found here; the second, on William O’Neil, can be found here; the third, on Joel Greenblatt, can be found here; and for an overview of the subject, see my…

2020 was an insane year on a lot of levels: the pandemic, the impeachment proceedings, the massive unemployment, the killings on America’s streets, the hubris of law enforcement, the rampant misinformation, the contesting of the election results . . . But it was an insane year on a personal level…