News
Deep Dive: Behavioral Finance: The New Frontier Or The Last Advantage in Investing
Jeff and Bogumil Baranowski dive deep into the concepts behind behavioral finance and economics in search of the new frontier or maybe the last edge in the investment world on Talking Billions. Talking Billions is a podcast hosted by Bogumil Baranowski. Bogumil Baranowski is an author, TEDx speaker, investor, and founding partner of Sicart Associates. A boutique investment firm founded in NYC.
Jeff Henriksen on Learning by Teaching and on Gaining the Behavioral Edge in Investing
In this short interview, Jeff talks about his experience of attending the executive MBA programme in Oxford, leading to him staying to teach a valuation course to graduates with Guy Spier. Other topics include gaining a behavioral edge in investing, and the advantages of a price to book strategy. Guy Spier manages the Aquamarine Fund, an investment firm with $350 million in assets and around 150 […]
Understanding Behavioral Economics: How to Beat the Market
Jeff Henriksen talks about understanding behavioral economics on The Capital Club. The Capital Club is a podcast by Excelsior Capital and hosted by Principal and Founder, Brian C. Adams, who spearheads the investor relations and capital markets arms of the firm
Buy stocks like Whirlpool — not NFTs
Investors should be looking to pick up stocks like Whirlpool and avoid assets like CryptoPunks NFTs, according to Jeff Henriksen, CEO and founder of Thorpe Abbotts Capital. Speaking to CNBC’s “Squawk Box Europe” on Monday, the Virginia-based hedge fund manager said despite the dominant market narratives around inflation, central bank tightening, supply chain problems and Covid-19, the U.S. economy remains robust and the improvement in labor force participation […]
The Great Value Rotation:
A Revival In The Performance Of Value Stocks Masks An Evolution In The Storied Investment Strategy The long-awaited rotation from growth to value has arrived. At least this is what many value investors believe. With this (potential) rotation comes a renewed debate about the future of value investing that will shape the philosophy’s evolution for years to come. Many stock market pundits and value investing advocates […]
Fed expected to stick with its ‘whatever it takes’ monetary policy stance
Jeff Henriksen, CEO and Founder of Thorpe Abbotts Capital, discusses the sentiment leading up to this year’s virtual economic policy symposium, and suggests the Fed will strive to ensure the function of credit markets by any means necessary
Keep Calm When You Price Assets In The Midst Of The Coronavirus Storm
It has been a while since I have put pen to paper. Only a few months, but it feels like an eternity. The last time I did so, I discussed how the current structure of the stock market–driven as it is by quantitative and passive investing strategies–has caused more than its statistical share of herding behavior. The resulting biases and market structure, I argued, create opportunities that […]
Waiting For The Bait Ball To Form
If you have never witnessed the formation of a bait ball, it is a sight to be seen. To protect themselves against predators, thousands of fish come together and create a gigantic gyrating ball. It is majestic and at times seems to take on a life of its own. The idea is a simple one. Safety in numbers. Any deviation from the ball is asymmetrically penalized. This […]
Antitrust and the intrinsic value of Alphabet
What tighter regulation might mean for Google’s all-conquering advertising business. Valuing Alphabet, Google’s holding company, requires multiple hats. There are many moving parts to consider as well as a lot of negative headlines. My preferred method of analyzing Alphabet’s stock price is to place a reasonable value on all of the company’s non-advertising-related businesses (such as its infamous Other Bets, YouTube, and cloud-computing offering) adding to […]
Stock Buybacks Should Not Be Legislated by Politicians
The economic nature of share repurchases defies simple generalizations. Countless times I have heard beliefs expressed that mischaracterize the effects that buybacks have on value creation for companies, their stakeholders and the economy. This misunderstanding creates an environment where false premises can lead to bad policy proposals. Read complete article
Valuing Lyft Requires A Deep Look Into Unit Economics
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. […]
Disconfirming Evidence:
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 – Part III
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 – Part II
Everything Not Zen: Finding Return Opportunities Amidst Renewed Market Volatility – Part II 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), I wrote about Benjamin Graham’s […]
Everything Not Zen – Part I
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, […]
Don’t Be A Warren Buffett Cover Band
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 in stocks that trade at a discount to their intrinsic value…We purchase high-quality businesses the market has put on sale… Said another way, we basically do what Warren does. These descriptions are […]
How To Succeed When The Efficient Market Hypothesis Fails
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 believes the market price is always “right” and […]
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