Interesting New White Paper on Net Nets

[indythinker85]

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2339319

[constructive]

Thanks for posting. That paper is quite disappointing though. It's poorly written and full of sentence fragments. And it boils 9 decades of data down to 4 yes/no data points, for no apparent reason.

[rijk]

agree, this is a very sloppy piece of work, actually it seems the author worked backwards and made generalizations so big that that any conclusion is meaningless...

if that was not enough, nearly everything else, like data quality and calculation methods seem just as sloppy......

 

regards

rijk

[Hielko]

Yes, I agree. Because of that the first paragraph is ironic:

 

My partner and I at Graham Theodor & Co. remain skeptical of academic studies relating to the field of

investing primarily because such studies have in the past resulted in the birth of various theories which

we believe have little relevance on the actual practice of capital allocation. With that said, there always

remains an exception to most every rule and in this case what I am hopeful this brief essay will equate to

that rarity, a useful study.