Short selling (also known as shorting or going short) is the practice of selling shares that have been borrowed from a broker with the intention of buying these shares back at a later date to return to the broker. In less technical terms: a short-seller is betting on a stock price to go down.
As you very well know, the days of ever-increasing stock prices have long passed and numerous investors now ask themselves: “how can I make money in the stock market if prices don’t go up?
A possible answer could lie in the business of shorting stocks. Let’s take a close look at the pros and cons.
First and foremost, investors should generally be wary of shorting stocks...[more]
We just completed backtests on our Piotroski price-to-book screener using our proprietary backtesting tool. (On Europe) We also loaded the portfolio into profitmapper so you can follow the charts day-to-day. The results are impressive. Between June 1999 and now, profitmapper shows a return of 525%! These results are even more astonishing if you compare this to the S&P600 Europe incl net dividends, which lost 15% during this period.
What's the theory behind this screener?
Many scientific studies confirm that buying a portfolio of low price-book companies will beat the market over time...[more]
I sometimes wonder whether some financial newspapers are really adept at explaining what's really going on in the world. For everyday market updates, journalists are trying hard to second guess why the stock markets go up or down. If you read their newspapers on the web it's not uncommon for a story to be updated in a very short time: Agfa-Gevaert posted fantastic results.. 15 minutes later: Agfa- Gevaert disappoints with lower than expected earnings...[more]
One of the remains of the Graham-Newman era (except Warren Buffet himself ) is Tweedy, Browne Company LLC.
Founded in 1920, Buffets favorites’ stockbroker, was located at 52 Wall Street, in the same building as Ben Graham had once worked. Even Walter Schloss was sub-renting some space in their tiny office and running his partnership from behind a battered desk in a small room.
They diversified to arbitrage, workouts, etc...[more]