Enterprising Investor
Practical analysis for investment professionals

equities


Coiled Tight: Smaller Companies Are Primed for Outperformance

Small-cap companies are poised for a rebound. The sector is best approached through an active investment strategy where expertise and a deep understanding of the individual businesses and their risk-and-reward characteristics are necessary for success.

What Price Risk? Unpacking the Equity Risk Premium

Stocks are a good wager over the long term, on favorable odds. But stocks remain a bet, and investors must grasp how much returns can vary over long time horizons.

Equity Income Investing Redux

No doubt the past year has been difficult for equity income investors. But history, inherent biases, mean reversion, and the current market backdrop point to a comeback.

CAPE Is High: Should You Care?

A simple analysis shows that Robert Shiller's cyclically adjusted price-to-earnings ratio changed in the 1990s and that mean-reversion concerns may be misplaced. If CAPE changed three decades ago, however, there is nothing preventing it from doing so again.

Does a Stock’s Price Influence Its Risk Profile?

As a stock falls in value, it becomes more sensitive to market movements and its total volatility increases.

Managing Regret Risk: The Role of Asset Allocation

Regret risk is a quantifiable phenomenon. The answer for some clients may be equally weighted portfolios.

Don’t Bank on the Equity Risk Premium

Sometimes, regardless of the holding period, stocks do underperform in absolute terms or relative to bonds.

Book Review: The Ownership Dividend

Daniel Peris's new book advises investors that the tide is about to turn: favor dividends over share growth alone.

The Remarkable Story of Style Regimes: For the Data-Driven Investor

Growth and value style returns are the market's veritable gulf stream, and investors should not ignore their powerful currents.

Times Change: The Era of the Private Equity Denominator Effect

How can investors address the denominator effect in private equities?



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