Excess Returns
Excess Returns
May 31, 2020
Interview: Systematic Value Investing with Wes Gray
Play • 42 min

Wes Gray is the founder of Alpha Architect, the author of Quantitative Value and Quantitative Momentum, and an expert in systematic investing.  In this interview, we discuss the recent struggles of value investing and how the current period fits into a long-term context. We also talk about the nuts and bolts of building a value strategy, including the pros and cons of value composites and the role of quality in a value portfolio. We hope you enjoy the discussion. 






Excess Returns is an investing podcast hosted by Jack Forehand (@practicalquant) and Justin Carbonneau (@jjcarbonneau), partners at Validea. Justin and Jack discuss a wide range of investing topics including factor investing, value investing, momentum investing, multi-factor investing, trend following, market valuation and more with the goal of helping those who watch and listen become better long term investors.










Twitter: https://twitter.com/practicalquant

LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094


Twitter: https://twitter.com/jjcarbonneau

LinkedIn: https://www.linkedin.com/in/jcarbonneau

The Intelligent Investing Podcast
The Intelligent Investing Podcast
Eric Schleien
#134: Eric Schleien Discussing Why He Hates Shorting Stocks, Thoughts on GameStop (GME)
I discuss why I hate shorting stocks and discuss the recent example of GameStop (GME). About Eric Schleien Over the past decade, Eric has trained thousands of individuals including board members of public companies as well as several Fortune 500 CEOs. Eric specializes in organizational culture and has become a leading authority on organizational culture in the investment industry. Eric has been investing for 15 years and has been using breakthrough coaching methodologies for over a decade. Eric had the insight to combine proven coaching methodologies with shareholder activism techniques to create an entirely new model for shareholder activism that was more reliable and created greater sustainable results in a rapid period of time. On average, Tribal Leadership produces a 3-5x increase in profits of culturally troubled companies within an average of 24 months or less. Eric currently resides in Philadelphia, PA. Help Out The Podcast If you like The Intelligent Investing Podcast, please consider leaving a rating and review on Apple Podcasts. It takes less than 30 seconds to do and makes a huge difference! You can also join the Facebook page! You can subscribe to the podcast on the following platforms: * Apple Podcasts * Stitcher * TuneIn * Spotify * Podbean * iHeart Radio * YouTube CONTACT ERIC SCHLEIEN Facebook | LinkedIn | Twitter | YouTube | GSCM | Instagram Email: IntelligentInvesting@gmail.com
2 min
Value Investing with Legends
Value Investing with Legends
Columbia Business School
Mohnish Pabrai - The Value of Continuous Learning
There are several great investors out there who are effectively offering free lessons through their positions, letters, and interviews. What’s surprising is that while many people listen to them, hardly anyone puts those lessons into practice. Today’s guest, Mohnish Pabrai, is not one to miss such opportunities and he attributes much of his success to his hunger to learn, improve, and adjust. Mohnish is an author and the Founder and CEO of Pabrai Investment Fund, which he started in 1999 at the peak of the tech bubble. In 1983 he moved to the United States from India, to study computer engineering at South Carolina's Clemson University. After working in research and development, Mohnish launched his own successful IT consulting firm, TransTech, in 1991. One of the most original investors out there, Mohnish arrived relatively late in his professional career to the world of investing but he has made such an impact ever since. Through Pabrai Investments, Mohnish has built one of those records that is the stuff of legends. On this episode, Mohnish and I discuss how his early years alongside his entrepreneurial father have shaped him as an investor, why he decided to make the switch to a career in investing, how he was introduced to the world of value investing through the works of Peter Lynch, his growth as an investor since starting Pabrai Investments as a hobby investor, how you can use cloning to your advantage, and so much more! Key Topics: * The meaning behind the title of Mohnish’s book “The Dhandho Investor” (3:02) * What Mohnish learned from his father’s entrepreneurial ventures (4:20) * Mohnish’s invaluable hands-on business experience as a teenager (8:05) * How an engineering background offers an advantage as an investor (10:40) * Mohnish’s decision to remain in the US after university (11:51) * The importance of looking at the big picture (13:03) * Moving from computer engineering to international marketing (14:36) * How Mohnish’s father changed the path of his career (15:41) * Why Mohnish decided to start his own company (18:17) * The early days of TransTech (20:14) * An introduction to Peter Lynch and Warren Buffet (22:22) * Testing out the Buffet approach to investing (23:48) * Transitioning into asset management (27:35) * The 1999 start of Pabrai Funds as a hobby (30:04) * Starting out as a traditional value investor (32:46) * Our aversion to cloning (34:17) * The significant competitive advantage you can gain by cloning (36:24) * Understanding the patterns of different investors (39:10) * Mohnish’s approach to idea selection (40:51) * Reaching clarity before making investment decisions (44:10) * Examining Fiat Chrysler as a case study for Mohnish’s investment process (47:31) * How Mohnish utilizes guardrails (50:59) * A value investor’s approach to risk management (52:46) * Finding 50 cent dollar bills (54:29) * Focusing on compounders (56:55) * What we can learn from NICE Holdings (59:37) * What you need to know about “spawning” (1:01:43) * Why investors need to think like entrepreneurs (1:05:06) * Why this is an interesting time for value investing (1:07:23) * How Mohnish thinks about the future of value investing (1:09:41) * And much more! Mentioned in this Episode: * Mohnish Pabrai’s Books: * Mosaic: Perspectives on Investing * The Dhandho Investor: The Low-Risk Value Method to High Returns * Peter Lynch’s Book | One Up On Wall Street: How To Use What You Already Know To Make Money In The Market * Young Presidents' Organization (YPO) * Tom Peters’ Book | In Search of Excellence: Lessons from America's Best-Run Companies Thanks for Listening! Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at valueinvesting@gsb.columbia.edu. Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!
1 hr 12 min
The Bid
The Bid
Larry Fink on our sustainable future
Thirty-two years ago, BlackRock’s Chairman and CEO, Larry Fink, rallied seven other people to found a small bond firm. Since then, BlackRock has grown into a global asset manager. Following the Global Financial Crisis, Larry began an annual tradition of writing a letter to CEOs on behalf of our clients – the institutions and individuals who invest in these companies to achieve their financial goals. On this special episode of The Bid, Larry talks about how the events of 2020 shaped his thinking in developing this year’s letter, why “net zero” will reshape the economy and why companies driven by purpose will thrive moving forward. This material is for informational purposes and is prepared by BlackRock, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of date of publication and are subject to change. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable and are not guaranteed as to accuracy or completeness. This material may contain ’forward looking’ information that is not purely historical in nature. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. Past performance is not indicative of current or future results. This information provided is neither tax nor legal advice and investors should consult with their own advisors before making investment decisions. The value of investments and the income from them can go down as well as up and you may not get back the amount invested. In the U.S. and Canada, this material is intended for public distribution. In the UK this is issued by BlackRock Investment Management (UK) Limited, authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Tel: + 44 (0)20 7743 3000. Registered in England and Wales No. 2020394. For your protection telephone calls are usually recorded. BlackRock is a trading name of BlackRock Investment Management (UK) Limited. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock.  In Singapore, this is issued by BlackRock (Singapore) Limited (Co. registration no. 200010143N). This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. In Hong Kong, this material is issued by BlackRock Asset Management North Asia Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong. In Australia, issued by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975 AFSL 230 523 (BIMAL). The material provides general information only and does not take into account your individual objectives, financial situation, needs or circumstances. In Latin America: this material is for educational purposes only and does not constitute investment advice nor an offer or solicitation to sell or a solicitation of an offer to buy any shares of any Fund. No securities regulators in Latin America have confirmed the accuracy of any information contained herein. The provision of investment management and investment advisory services is a regulated activity in Mexico thus is subject to strict rules. For more information on the Investment Advisory Services offered by BlackRock Mexico please refer to the Investment Services Guide available at www.blackrock.com/mx. IN MEXICO, FOR INSTITUTIONAL AND QUALIFIED INVESTORS USE ONLY. INVESTING INVOLVES RISK, INCLUDING POSSIBLE LOSS OF PRINCIPAL. THIS MATERIAL IS PROVIDED FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER OR SOLICITATION TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SHARES OF ANY FUND OR SECURITY. This information does not consider the investment objectives, risk tolerance or the financial circumstances of any specific investor. This information does not replace the obligation of financial advisor to apply his/her best judgment in making investment decisions or investment recommendations. It is your responsibility to inform yourself of, and to observe, all applicable laws and regulations of Mexico. If any funds, securities or investment strategies are mentioned or inferred in this material, such funds, securities or strategies have not been registered with the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores, the “CNBV”) and thus, may not be publicly offered in Mexico. The CNBV has not confirmed the accuracy of any information contained herein. The provision of investment management and investment advisory services (“Investment Services”) is a regulated activity in Mexico, subject to strict rules, and performed under the supervision of the CNBV. The materials that may be shared in this forum are for information purposes only, do not constitute investment advice, and are being shared in the understanding that the addressee is an Institutional or Qualified investor as defined under Mexican Law. BlackRock México Operadora, S.A. de C.V., Sociedad Operadora de Fondos de Inversión (“BlackRock México Operadora”) is a Mexican subsidiary of BlackRock, Inc., authorized by the CNBV as a Mutual Fund Manager (Operadora de Fondos), and as such, authorized to manage Mexican mutual funds, ETFs and provide Investment Advisory Services. For more information on the Investment Services offered by BlackRock Mexico, please review our Investment Services Guide available in www.blackrock.com/mx . This material represents an assessment at a specific time and its information should not be relied upon by the you as research or investment advice regarding the funds, any security or investment strategy in particular. Reliance upon information in this material is at your sole discretion. BlackRock México is not authorized to receive deposits, carry out intermediation activities, or act as a broker dealer, or bank in Mexico. For more information on BlackRock México, please visit:www.BlackRock.com/mx. BlackRock receives revenue in the form of advisory fees for our advisory services and management fees for our mutual funds, exchange traded funds and collective investment trusts. Any modification, change, distribution or inadequate use of information of this document is not responsibility of BlackRock or any of its affiliates. Pursuant to the Mexican Data Privacy Law (Ley Federal de Protección de Datos Personales en Posesión de Particulares), to register your personal data you must confirm that you have read and understood the Privacy Notice of BlackRock México Operadora. For the full disclosure, please visit www.BlackRock.com/mx and accept that your personal information will be managed according with the terms and conditions set forth therein. BlackRock® is a registered trademark of BlackRock, Inc. All other trademarks are the property of their respective owners. ©2021 BlackRock, Inc. All Rights Reserved. BLACKROCK is a registered trademark of BlackRock, Inc. All other trademarks are those of their respective owners.
32 min
The Acquirers Podcast
The Acquirers Podcast
Tobias Carlisle
Vixology: Jim Carroll on the VIX and volatility complex with Tobias Carlisle on The Acquirers Podcast
Jim Carroll is Senior Vice President and Portfolio Manager at Toroso Advisors. He is a portfolio manager specializing in momentum and volatility strategies.    Jim's firm: https://torosoadvisors.com/ Jim's twitter: https://twitter.com/vixologist ABOUT THE PODCAST Hi, I'm Tobias Carlisle. I've launched a new podcast called The Acquirers Podcast. The podcast is about finding undervalued stocks, deep value investing, hedge funds, activism, buyouts, and special situations. We uncover the tactics and strategies for finding good investments, managing risk, dealing with bad luck, and maximizing success. SEE LATEST EPISODES https://acquirersmultiple.com/podcast/ SEE OUR FREE DEEP VALUE STOCK SCREENER https://acquirersmultiple.com/screener/ FOLLOW TOBIAS Firm: https://acquirersfunds.com/ Website: https://acquirersmultiple.com/ Twitter: https://twitter.com/Greenbackd LinkedIn: https://www.linkedin.com/in/tobycarlisle Facebook: https://www.facebook.com/tobiascarlisle Instagram: https://www.instagram.com/tobias_carlisle ABOUT TOBIAS CARLISLE Tobias Carlisle is the founder of The Acquirer’s Multiple®, and Acquirers Funds®. He is best known as the author of the #1 new release in Amazon’s Business and Finance The Acquirer’s Multiple: How the Billionaire Contrarians of Deep Value Beat the Market, the Amazon best-sellers Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations (2014) (https://amzn.to/2VwvAGF), Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors (2012) (https://amzn.to/2SDDxrN), and Concentrated Investing: Strategies of the World’s Greatest Concentrated Value Investors (2016) (https://amzn.to/2SEEjVn). He has extensive experience in investment management, business valuation, public comp
49 min
The 7investing Podcast
The 7investing Podcast
7investing Team Call: DocuSign vs Sea Limited
Every month, our team of advisors each choose what is their very best idea in the stock market, and then presents that recommendation to their fellow Lead Advisors.  We then, as a team, have the chance to ask questions about the opportunities, as well as the risks, of that particular stock.  On the eighth of every month, the recording of those conversations are released to our subscribers!   Our subscribers agree - this is one of the highlights of a 7investing subscription.  While our actual Deep Dives are only accessible to our premium members, we wanted to give those who haven't joined us yet a glimpse into how our marketing beating recommendations are selected.  In December, the team presented a mock Deep Dive on Tesla to showcase our extensive research process.  For January, we decided to switch things up and present two companies, with a vote at the end as to which one is the better investment opportunity.   We asked on Twitter for you to choose which two companies to dive deep into: Mercado Libre, Okta, DocuSign, or Sea Limited.    With Sea Limited and DocuSign as the winners, we dove head first into both companies as if they were official 7investing recommendations.  Dan Kline took the bull case for DocuSign while Steve Symington played devil's advocate and presented the bear case. Austin Lieberman discussed why he believes Sea Limited is an excellent investment opportunity, with Simon Erickson following up with the bear case.     In the end, with a vote of 4-2, the team decided which company poses the greatest benefits to long term investors.  Did we sign off on DocuSign?  Or are we all in on Sea Limited?  Tune into this episode of the 7investing Podcast to hear our thoughts!     Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $17 per month. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education:  https://www.7investing.com Follow us on Social Media ► https://www.facebook.com/7investing/ ► https://twitter.com/7investing ► https://instagram.com/7investingofficial --- Send in a voice message: https://anchor.fm/7investing/message
51 min
Planet MicroCap Podcast | MicroCap Investing Strategies
Planet MicroCap Podcast | MicroCap Investing Strategies
SNN Network
Ep. 158 - I'm Just a Streamer, Stream My Life Away with Francisco Olivera, President of Arevilo Capital Management
For this episode of the Planet MicroCap Podcast, I spoke with Francisco Olivera. He is the President of Arevilo Capital Management. I had Francisco on a recent episode of The Investors Roundtable to discuss "The Future of Media and Streaming Services", and we thought it would be fun to have a full conversation all about streaming services. Look, I will find any excuse to do a podcast talking with colleagues about our favorite shows and podcasts, but despite thinking we would, we do get into discussing various business models, what's working, what's not and more. For more information about Francisco Olivera and Arevilo Capital Management, please visit Twitter @FrancoOlivera: https://twitter.com/FrancoOlivera We are conducting a survey titled, "2021 Small Public Company Investor Survey: Identifying Investing Trends in Micro- to Small-Cap Stocks." I would really appreciate your input on this by taking our brief survey as we want to better serve you. #SNNsurvey: https://www.surveymonkey.com/r/SNN_InvestorSurvey Planet MicroCap Podcast is on YouTube! All archived episodes and each new episode will be posted on the SNN Network YouTube channel. I’ve provided the link in the description if you’d like to subscribe. You’ll also get the chance to watch all our Video Interviews with management teams, educational panels from the conference, as well as expert commentary from some familiar guests on the podcast. Subscribe here: http://bit.ly/1Q5Yfym Click here to rate and review the Planet MicroCap Podcast The Planet MicroCap Podcast is brought to you by SNN Incorporated, publishers of StockNewsNow.com, The Official MicroCap News Source, and the MicroCap Review Magazine, the leading magazine in the MicroCap market. You can Follow the Planet MicroCap Podcast on Twitter @BobbyKKraft
1 hr 15 min
The Rational Reminder Podcast
The Rational Reminder Podcast
Benjamin Felix & Cameron Passmore
Adriana Robertson: "Passive" Investing, and What Matters to Investors (EP.133)
The terms passive investing and index investing are often intertwined, but they are not exactly the same thing. Today’s guest is Adriana Robertson, the Honourable Justice Frank Iacobucci Chair in Capital Markets Regulation and an associate professor of Law and Finance at the University of Toronto Faculty of Law and Rotman School of Management. Adriana is interested in index investing and, in this episode, we hear her views on whether or not index investing is passive. Hear facts from her paper on the S&P 500 Index fund specifically, and all of the reasons that it's not passive, as well as some of the issues that are potentially arising from the creation of so many indexes or so-called passive investments. A more recent paper by Adriana, published in The Journal of Finance, surveyed a representative sample of U.S. individual investors about how well leading academic theories describe their financial beliefs and decisions, and Adriana shares the differences in something like value growth from an academic perspective versus a real-world perspective. Find out how investors can go about evaluating the performance of their portfolios and what they should be looking for when deciding which index fund to invest in, as well as why index funds aren’t a meaningful category anyway, factors from Adriana’s surveys that might influence investor’s equity allocation, and the trend towards indexing and whether it will overtake active portfolios. Tune in today for all this and more! Key Points From This Episode: * Whether or not it’s sensible to call the S&P 500 Index fund a passive investment. [0:03:20] * How discretion affects the S&P 500 Index constituents and performance. [0:04:14] * Adriana reflects on Tesla joining the S&P 500 Index and the speculation there. [0:04:49] * Adriana’s view of benchmarking and comparing other investments to the S&P 500. [0:05:34] * Why calling it rules-based investing rather than passive depends on the index. [0:07:35] * How investors can go about evaluating the performance of their portfolios. [0:04:14] * Why Adriana believes there are so many indexes and how they differ. [0:09:29] * Value growth from an academic perspective versus a real-world perspective. [0:11:28] * Why methodology differences between indices aren’t necessarily well-documented. [0:13:14] * The marketing strategies involved in fund managers creating affiliated versus bespoke indices. [0:14:50] * Common differences in index fund tracking and one-to-one mapping. [0:15:45] * What investors should be looking for when evaluating which index fund to invest in. [0:16:53] * Tilting towards factors versus using the market cap as the de facto benchmark. [0:18:19] * Why Adriana’s advice is to compare an investment to the other options available. [0:20:11] * Ex-ante versus ex-post and whether funds choosing a benchmark ex-post to inflate performance is a concern. [0:21:31] * Concerns over asset growth in index funds and why it’s not a meaningful category. [0:23:47] * Factors from the survey results of Adriana’s recent paper that might influence investor’s equity allocation. [0:26:16] * The results that were surprising to her, like the need for cash for routine expenses. [0:28:21] * Reasons there is still so much money invested in active funds – for example, a belief in higher returns and advisor recommendations. [0:29:57] * Notably, how equity allocation is reliant upon professional financial advice. [0:32:12] * Whether or not a year like 2020 will affect the asset allocation of investors. [0:35:17] * The trend towards indexing and whether it will overtake active portfolios. [0:37:02] * The implications of risk on the theoretical explanations for asset pricing anomalies. [0:39:00] * The role of professional financial advisors in high net worth investor’s decisions. [0:37:02] * How Adriana came to be so interested in and passionate about indexing. [0:44:49] * Adriana’s defines success by figuring out what she wants to doing it do it well. [0:47:24]
48 min
Let's Talk ETFs
Let's Talk ETFs
Seeking Alpha
Ain't Nothing But A 5G Thing: A Deep Dive Into The Top Performing 5G ETF (WUGI)
The focus of a multitude of conspiracy theories across the nether regions of the internet, the returns provided by playing the move to 5G have been anything but fake. According to Esoterica Capital CEO Bruce Liu, the move to 5G is not so much an upgrade to an existing tech cycle as a re-envisioning of the entire tech stack. Investors should take note when Liu discusses anything 5G-related: his firm's flagship ETF, WUGI, has doubled up on peers FIVG and NXTG since launching in late March, returning nearly 100%. Show Notes Show Notes 4:00 - What exactly is 5G? Defining the parameters of the conversation 9:15 - The 5G investing universe: Which sectors stand to benefit the most? 13:15 - "A re-envisioning of the entire tech stack": 5G, the Internet of Things, and autonomous driving 16:15 - Liar, liar, cellphone tower on fire: Why is there so much conspiracy thinking around the move to 5G? 20:00 - WUGI vs. FIVG vs. NXTG: In a space this fluid, does active trump passive? 29:30 - The move to 4G vs. to 5G: All in on the chipmakers (AMD) (QCOM) (TSM) (NVDA); avoiding the handset manufacturers (AAPL) (SSNLF) and networking players (NOK) (ERIC) this time around 38:30 - What's WUGI's research and stock selection process? 43:00 - A word on position sizing 45:15 - How "active" is WUGI? Reviewing annual turnover 50:00 - What are large FAANG type stocks like Netflix (NFLX) and Facebook (FB) doing in the portfolio? 55:00 - A name in the portfolio that will drive performance in the coming year: Meituan (MPNGF) Learn more about your ad choices. Visit megaphone.fm/adchoices
1 hr 6 min
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