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Hello
This question cannot be answered in a short article, nor in a simple update of the book. It is a world in itself. I have deliberately not addressed this point in my e-book, instead pointing the reader to Graham's bible. Security Analysis" .
So either you go for it or you stick to pure quantitative investing. That's enough for most investors. The results with that approach are very good and it's much simpler. If you follow the QVM3 strategy for example, the filters are already very selective and there aren't many results returned.
But who is this dear Ploutos?
Thanks for your post. Regarding the typos, figure 21, indeed, well seen… It's just in the part devoted to real estate, but wrong in this summary table. I corrected it, thanks for your lynx eye. Like what even after very many rereadings…
On the other hand, for the other point you mention, IEF is correct, not EEM as you seem to think. You choose the ETF that has the best performance among the three that are mentioned unless the MM-UI indicator is bad (in this case you switch to IEF). I will very slightly modify the wording since it seems to create confusion.
Don't hesitate if you see other things that don't seem clear.
Your private section suggestion: good suggestion, it's done and I gave you access. I'll let you open the first topic there.
I assure you that you are not the only one who comes to the forum. There are many people who read, but few who participate, which is a shame. This is the same observation that we made following the survey.
PS: in your PS you also made a very nice mistake. I think that unconsciously it was wanted. Ciao!
At first I thought it would be a supplement but the conclusions ultimately go much further. The book is also more complete. So it will replace.
my experience +
https://en.wikipedia.org/wiki/Earnings_yield
https://www.investopedia.com/terms/e/ebitda.asp
Quantitative Value Investing in Europe: What works for achieving alpha (Vanstraceele, Philipp; du Toit, Tim)
Analyzing Valuation Measures: A Performance Horse-Race Over the Past 40 Years, Journal of Portfolio Management (Gray, Wesley R.; Vogel, Jack)
Quantitative Strategies for Achieving Alpha (Tortoriello, Richard)
and above all by this spring a new e-book from me which talks about it
I actually use these ETFs to follow the trend and make my top down decisions to buy stocks directly. This is the best way to go because ETFs are a blend of good and bad vintages. However, for beginners and/or those with little means, it is better to start with ETFs. So in this case we will base ourselves on the ETFs mentioned rather than on the stocks themselves.
ETFs are also useful for taking minority positions in other assets such as gold, bonds, real estate and specific markets such as emerging markets.
For the latter I replaced IEMS with EEM for liquidity reasons.
indeed the liquidity is comfortable (current ratio of 2)
EV/FCF is a distant cousin of P/E, better in the numerator and denominator, so with a value of 7 it is very interesting (anything below 10 is interesting)
same for EV/EBITDA, below 10 it's good
normally we take the inverse value EBITDA/EV in % (I have 23% for Otec)
anything above 10% is good
I use ETFs where I don't have direct stocks, i.e. gold, bonds, real estate and emerging markets.
ETFs are not complicated. You just have to stay focused on a few that are fairly liquid and not too expensive in terms of management fees.
The only real challenge is less their choice than the way to arrange them between them. In short, asset allocation.
I am currently writing a book that will be published this spring and which will discuss ETFs in particular.
In the meantime, you can already read this series of articles:
How to diversify your portfolio to protect yourself from market risks? (1/20)
and get inspired by my asset allocation:
Hi,
If you want to invest in the long term, I advise you to open a trading account with Postfinance.
Check out this link:
Here we talk a little about ETFs, even if stocks are our favorite subject.
To inform and train you, it depends... what do you want to know?
