High Return Low Risk Investment according to Herzfeld and Drach
first posted: 2024-12-02 08:35:59.378457
High Return Low Risk Investment by Herzfeld and Drach is 80s book reedited in 1993. The book talk in a very mature way about the conflicts of interest between different market participants.
The strategy proposed is to filter a set of good companies and buy when they are shunned. The authors also recommend monitoring
- P/E compare to average of last 7 year
- Div Yield compare to average of last 7 year
- Price to Book ratio compare to average of last 7 year
- Call/Put ratio
- Analyst Sentiment survey: when all analyst agree they are wrong (bullish if trying to bring some more investors, bearish when convincing clients to churn)
- margins volume at brokerage
- issuance volume (IPO, new stock issuance, LBO)
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