Category: Factor Investing

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4th year of Momentum Investing – Getting Rich

In the world of Momentum Investing, our belief is that the probability of past winners continuing to be a winner in the future is high. In some ways, this is the same logic of Growth Investing (which is not a factor based strategy as such). Here instead of looking at price, the idea is to look at the business and...

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The Value of a Back-Test and Momentum Investing

I recently saw the reality sitcom “Shark Tanks” {Season 10 is available on Amazon Prime}. As an entrepreneur, this is an amazing show highlighting the tough path of bringing an idea to reality. While I kind of dislike the behavior of the Sharks who act pretty cruel, this being television and if they are really investing real money, they have...

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Rotation of Factors – Keeping up with Sharmaji ka Beta

Factor Investing hasn’t made much inroads in the Indian financial markets even though we keep talking about Value, Quality and some times Momentum. Along with Volatility and Size, the key styles of factors among the many are all the rage in the United States with assets under management exceeding 900 Billion Dollars. 2017 was a year when Size factor was...

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Chart: The ways to Skin the Market – Factor Investing

Factor investing hasn’t got of to a start in India even though most people talk about factors. Value based on how you derive it is a factor that could be used as a way to rank stocks and buy the cheapest. The following chart is from US where the Value factor primarily defined by buying stocks that are cheap as...