Don’t be afraid of the journey to Diamond Head. You will find it to be a safe and comfortable one.
- Robert Haugen, 2010
8 December 2013
Bernanke will be around to see the results of his mistakes – Zero Hedge
The State Causes the Poverty It Later Claims to Solve – LvM Institute
State is an Institution of Theft – Mish
Belastingen ontmoedigen sparen op lange termijn – De Standaard
Yernaz Ramautarsing over de linkse indoctrinatie – YouTube
Sinds de overname door Mandela is Zuid-Afrika een Derde Wereldland geworden – EJ Bron
Islamitische massaverkrachtingen in Zweden in de internationale media – EJ Bron
7 December 2013
Hugh Hendry Throws In The Bearish Towel – Zero Hedge
The Countdown to Year-End – Prudent Bear
If You Like Gold: Forget the Miners, Buy the Metal – Douglas French
Krenking van religieuze gevoelens – Geen Stijl
Open Letter to his Holiness Pope Francis – Gates of Vienna
MUST READ: A behavioral critique of traditional asset management by James Montier
James Montier (2005) analyses the investment process of a traditional asset management company from a behavioral perspective. It turns out that an investment process based on forecasts, future trends and stories is highly vulnerable to behavioral weaknesses.
Studiegids tot Money, Bank Credit and Economic Cycles – Hoofdstuk 3
Studiegids tot Money, Bank Credit and Economic Cycles – Hoofdstuk 2
Studiegids tot Money, Bank Credit and Economic Cycles – Hoofdstuk 1
Studiegids tot Money, Bank Credit and Economic Cycles – Inleiding
Studiegids tot Money, Bank Credit and Economic Cycles – Voorwoord
Studiegids tot Money, Bank Credit and Economic Cycles – Aanleiding
Welcome to my website. Here you can find more information about my professional competencies organised around four knowledge domains. The first domain covers the knowledge regarding quantitative value investing. Successful value investing requires the use of fundamental (valuation) criteria that are established based on the historical financial statements; the (empirical) knowledge on this subject can be found in Old-school Value Investing: Technique. Secondly value investing requires the effective application of various psychological insights; this knowledge is collected in Old-school Value Investing: Psychology. In a third knowledge domain we find The New Finance, a quantitative investment technology and corresponding perceptions developed by Robert Haugen. Finally the fourth domain deals with the knowledge about the Austrian School of Economics. Based on these four knowledge areas various unique and quantitative (value) technologies have been developed.
Old-school Value Investing: Technique
- Based on the investment canon of Benjamin Graham.
- A value portfolio is established where:
- each company in the value portfolio has the required fundamental safety margins;
- the safety margins are defined based on the historical financial statements;
- in the screening procedure no forecasts are introduced.
- Investment horizon of at least (!) five years and restricted turnover on an annual basis.
Old-school Value Investing: Psychology
- Benjamin Graham was aware of the fact that a sound psychological attitude vis-à-vis stock price fluctuations is the critical success factor when implementing value strategies. "Intelligent investing is a mental approach."
- We discuss the implications of this important insight regarding the way in which investment processes are structuralised and investment returns of value strategies are assessed. This discussion also is extremely important for investors in value funds.
The New Finance
- Based on the research of Robert Haugen and Nardin Baker.
- Identification of the real determinants of future stock returns, including:
- (fundamental) risk factors;
- fundamental measures of cheapness;
- fundamental measures of profitability;
- technical factors.
- "Super Stocks" are distinguished from "Stupid Stocks".
- Highly dynamic through less dynamic investment strategies are possible.
Austrian School of Economics
- Economic school with Ludwig von Mises being the most principal historical thinker.
- The manipulation of the interest rate by (central) banks implies a market-disturbing operation resulting, among other things, in artificially increased corporate profits.
- In order to prevent economic crises, an end should come to the violation of private property rights in the monetary sphere, mainly existing of the practice of fractional reserve banking and the ever advancing interventions by central banks.
- Socialism is doomed to fail. Already in the year 1920 Mises indicated the impossibility of the central organisation and planning of the economy.
- The school emphasises the role of savers (capitalists) and entrepreneurs in the economy.