Search found 75 matches

by dml130
Thu Oct 01, 2020 7:12 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

If I already own an s&p 400 (mid cap) value fund, is this suitable as a "small cap value" holding for all intents and purposes, or should I think of this more as a "large value" tilt? I'm thinking the former (small value) but curious if others think I'm wrong on that.
by dml130
Tue Sep 29, 2020 8:44 am
Forum: Investing - Theory, News & General
Topic: What do Bogleheads think of what happen to Japan?
Replies: 66
Views: 5618

Re: What do Bogleheads think of what happen to Japan?

I just got through reading Fully Grown by Dietrich Vollrath and it fully met my biases with confirmation. I already thought all the stuff he wrote. He does not at all resort to using Japan as an example, but you can clearly see that Japan is a highly developed economy, extremely so, with a low birt...
by dml130
Mon Sep 28, 2020 12:36 pm
Forum: Investing - Theory, News & General
Topic: How would a USD collapse affect dollar-denominated international ETFs?
Replies: 21
Views: 1100

Re: How would a USD collapse affect dollar-denominated international ETFs?

I was asking about US domiciled funds such as VXUS, not funds domiciled outside the US, but the info is good to know anyhow. I'm curious how likely or possible (or unprecedented?) it is that countries force those types of funds to shut down in such an economic crisis.
by dml130
Mon Sep 28, 2020 12:05 pm
Forum: Investing - Theory, News & General
Topic: How would a USD collapse affect dollar-denominated international ETFs?
Replies: 21
Views: 1100

Re: How would a USD collapse affect dollar-denominated international ETFs?

In order for it to be life-changing you'd have to assume a lot of things: ... [*]The US government does not impose any kind of currency controls or restrictions on transborder currency or asset controls ... Just wondering, on this point, would such restrictions imply that in such a (probably unlike...
by dml130
Mon Sep 28, 2020 6:24 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

Okay, so it's considered "small" by these metrics, I guess. But, am I mistaken that this is also supposed to be a "value" fund of sorts? By what measure is TSLA considered a value stock? For RAFI indexes the tilt to value is dynamic, i.e. it buys recently beaten down stocks and ...
by dml130
Sun Sep 27, 2020 11:36 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

Okay, so it's considered "small" by these metrics, I guess. But, am I mistaken that this is also supposed to be a "value" fund of sorts? By what measure is TSLA considered a value stock?
by dml130
Sun Sep 27, 2020 9:31 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

Funny note while looking at FNDA... it's 2nd largest holding at 0.47% is TSLA! Funny quirk with these fundamental small-cap funds, the small comes from the economic scale and not the market-cap :). I'm a little confused about this. I was looking at closely at FNDA but noticed that TSLA is a top hol...
by dml130
Mon Sep 21, 2020 5:32 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

I presume you mean active funds because a mutual fund can be a index fund, but even some “active” value funds are still targeting factor exposure via a systematic approach, while others could be a bottoms up fundamental active fund. I prefer systematic investing and think humans only reduce perform...
by dml130
Mon Sep 21, 2020 11:57 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

I presume you mean active funds because a mutual fund can be a index fund, but even some “active” value funds are still targeting factor exposure via a systematic approach, while others could be a bottoms up fundamental active fund. I prefer systematic investing and think humans only reduce perform...
by dml130
Mon Sep 21, 2020 11:41 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

Thanks for those links. Value is a difficult concept for me because to some degree it seems subjective. Some stocks that appear to be more "growth" might be considered as a great value by some due to strong prospects for future profit growth. And as mototrojan mentioned, even book values ...
by dml130
Mon Sep 21, 2020 11:08 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

Wes Gray and Tobias Carlisle are both outspoken believers in enterprise value over EBIT or EBITDA. Jim O at OSAM has a great book What Works On Wallstreet that shows many different metrics including some composites dating back to early 1920's and P/B works but is not anywhere near the top dog (as W...
by dml130
Mon Sep 21, 2020 11:04 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

This is a very basic question, but, how are defining "value", and which equities qualify as "value" and which do not? Is this based mainly on price to book (from my reading of HML, it looks like it's primarily based on price to book)? This is an EXCELLENT question and for me it ...
by dml130
Sun Sep 20, 2020 8:06 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

Ah you’re asking how to compare funds, not how the funds achieve said value exposure. Clearest and most consistent way is to regress the HML factor exposure which is based on P/B, but that is less effective with some niche funds. But there’s nothing stopping you from calculating any of these other ...
by dml130
Sun Sep 20, 2020 5:46 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

This is a very basic question, but, how are defining "value", and which equities qualify as "value" and which do not? Is this based mainly on price to book (from my reading of HML, it looks like it's primarily based on price to book)? Many ways. Some use P/B, many a composite of...
by dml130
Sun Sep 20, 2020 5:39 pm
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 11152

Re: Reasons to invest internationally, or not.

I'm not sure if this information is available, but in case anybody knows, did global diversification provide any downside protection during the Great Depression? I realize it was a global event, but I'm curious if it hit the stock markets of some countries (Switzerland or Australia?) less severely t...
by dml130
Sun Sep 20, 2020 5:24 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

This is a very basic question, but, how are defining "value", and which equities qualify as "value" and which do not? Is this based mainly on price to book (from my reading of HML, it looks like it's primarily based on price to book)?
by dml130
Tue Sep 15, 2020 11:10 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

That's helpful, thanks!

Any thoughts on investing in small cap value with mutual funds such as Vanguard (VEVFX) as opposed to (or in addition to) etfs?
by dml130
Tue Sep 15, 2020 8:50 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

Absolutely, the ratio needs to be consistent. You should really use sales along with EV. But dml130 mentioned "other popular ratios" are useless too, which I disagree with. P/B and P/E are consistent in both numerator and denominator, so they are reasonable. And I personally agree with Pr...
by dml130
Mon Sep 14, 2020 2:08 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

I would be careful about using P/S to compare value as it is highly susceptible to leverage (leverage makes companies look cheaper on this metric). See #1 here for how to correct this by using EV/S: https://www.oldschoolvalue.com/investing-strategy/useless-stock-metrics/ I took a look at that link,...
by dml130
Mon Sep 14, 2020 1:23 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

I would be careful about using P/S to compare value as it is highly susceptible to leverage (leverage makes companies look cheaper on this metric). See #1 here for how to correct this by using EV/S: https://www.oldschoolvalue.com/investing-strategy/useless-stock-metrics/ I took a look at that link,...
by dml130
Mon Sep 14, 2020 1:05 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

That may be true, but if you are looking to get value factor exposure you have to get comfortable buying things that have stories like this as that is a big explanation of the premium. Whether you think it is risk-related or behavioral, you are often going to be buying companies, sectors, or countr...
by dml130
Mon Sep 14, 2020 10:05 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

I could see justifying it myself if that is all I had available (say in a 401k), but personally would prefer the true value variant. Curious why you are averse to the value side? It has plenty of diversification and according to the 5-factor regression here, the value fund has actually had better e...
by dml130
Mon Sep 14, 2020 9:32 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3387
Views: 253563

Re: Small Cap Value heads Rejoice !!!

Would anybody advocate investing in the broader s&p 600 (as opposed to specifically s&p 600 value) as a sufficient value position at this point in time? I was looking at morningstar metrics and s&p 600 average p/s is .78 and price to cash flow is about 6, for example. That to me seems to...
by dml130
Sat Sep 12, 2020 5:16 pm
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 11152

Re: Reasons to invest internationally, or not.

I have a related question. With regard to currency and appreciation/depreciation, what I hear people say about the corresponding effects on foreign stocks sometimes conflict, at least in my mind, so I'd appreciate if anybody could try and clarify. For example, on the one hand I've heard that currenc...
by dml130
Wed Sep 02, 2020 11:54 am
Forum: Investing - Theory, News & General
Topic: Tips hyperinflation?
Replies: 46
Views: 3108

Re: Tips hyperinflation?

Translation: If SHTF, all bets are off. Not very reassuring. But even without this clause, the US government can always default on its debt so really doesn’t matter. To really protect against hyperinflation one needs assets in another country. I am fortunate enough to be dual EU-US citizen. On that...