You are getting the hang of investing. You understand that there are underlying principles to investing in general. What goes for one stock, might go for other stocks. What goes for stocks in general …
Operating cash flow (OCF) is where the rubber meets the road: cash that the business actually generates from day-to-day operations. It is pretty common for quant and factor investors to simply use OCF…
I have been giving some thought to different types of factor categories and how to come up with new ways to classify each factor. Doing this - in my opinion - is vital to creating a robust strategy. T…
Much has been written about so called 'compounders': companies with sustained high returns on invested capital. That grow and keep growing in a stable way over the long term. Usually due to network ef…
Retained Earnings. Why it matters Retained earnings are the running tally of every dollar a company has ever earned but not paid out—its self-funded war chest. When that balance climbs at a steady, co…
Why is Cash Flow to Assets important? Return on Invested Capital is a well known metric. Basically, it tries to measure the effectiveness of a company in deploying its capital. Let's say you have two …
Why Stable Free Cash Flow Growth Matters Free Cash Flow is typically defined as Operating Cash Flow minus Capital Expenditures. It is the cash that is left to either reinvest or to pay stakeholders wi…
Simple but robust If you have read the E-book, then you will know that even simple models can be quite robust. Of course, they will never be as robust as models with a lot of factors. But as long as y…
Does stable growth of revenues lead to higher returns? One of the interesting aspects about factor investing is that it is about the question what a good company looks like - an attractive business th…
As I came out of college, I applied for a wide variety of investing jobs. I thought: What better place to find like-minded individuals willing to confront conventional wisdom than a hardcore investmen…
Imagine this: a lecture hall filled with 300 students, all leaning forward, focused on the professor at the front of the room. This isn’t just any university; it’s a top business school, and these stu…
