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Financial markets are a fascinating social mechanism. When they work well, large numbers of buyers and sellers come together and employ a diverse set of investment philosophies to debate an asset’s intrinsic value. If investors do this without bias, the prices that emerge are, at least on average, correct. Prior to going public, Lyft was priced by one style of investor – the growth-oriented venture capitalist. [...]

What the Bulls See In Facebook And What Should Worry Us In season one of Billions, Bobby Axelrod advises a new analyst, Ben Kim, that to truly understand a company, sometimes, you have to put it in your mouth. I couldn’t agree more. I have recently been thinking a lot about Facebook. There is a bull case for the stock that cannot be taken lightly and it’s [...]

Everything Not Zen: Finding Return Opportunities Amidst Renewed Market Volatility - Part III A guy walks into a bar, orders a beer, and declares that the Yankees are going to win the 2019 Pennant. This is their year and there is no doubt. Another guy walks into a bar, orders a beer, and declares that the Yankees are going to win the 2019 Pennant…with 48% probability. [...]

Everything Not Zen: Finding Return Opportunities Amidst Renewed Market Volatility - Part II Perceptions ANIKA HUIZINGA A proper balance between bulls and bears, between risk aversion and risk seeking behavior, leads to something like market Zen. When all views are incorporated in such a way, market prices are pretty good estimates of fundamental value. In part I of this series (which you can find here), [...]

Everything Not Zen: Finding Return Opportunities Amidst Renewed Market Volatility - Part I Let me tell you the story of Mr. Market. It is one all value investors know well, but for those of you who are unfamiliar, now is a great time to tell you about this fascinating man. Mr. Market is the mercurial character first introduced to us by the father of value investing, [...]

Hoobastank, an American rock band, performs for service members and their families from across Okinawa on Kadena Air Base, Japan, Nov. 15, 2012. U.S. AIR FORCE PHOTO/STAFF SGT. SARA CSURILLA Ask ten value investors to describe what value investing is, and you will likely get a handful of somewhat similar answers. We look to buy companies for less than they are fundamentally worth…We invest [...]

Crowd PHOTO BY CHUTTERSNAP ON UNSPLASH In a lecture theatre at the University of Chicago in the spring of 1988, at an event dedicated to understanding Black Monday and the stock market crash of 1987, the behavioral economist Richard Thaler posed a question. The audience Thaler spoke to comprised some of the best known efficient market luminaries of the day, a group that ardently [...]