At Hoover Capital Management (HCM), we’ve always championed the principles of value investing. Our commitment is rooted in the belief that focusing on fundamentally strong companies with undervalued assets leads to sustainable long-term growth. This belief is further reinforced by a recent analysis of the French High Minus Low (HML) factor, which highlights the historical …
Continue reading “The Enduring Power of Value Investing: A 97-Year Retrospective”
A Return to Dominance: The Magnificent 7’s Influence in 2023 In 2023, the financial markets witnessed a striking phenomenon. The S&P 500 and MSCI ACWI reported robust returns of 26.2% and 22.2%, respectively, signaling a buoyant year for investors. However, these headline figures mask a deeper, more intricate narrative of market concentration and disparity. The …
Continue reading “Unveiling the Influence: The Magnificent 7 Shaping”
Introduction: As steadfast believers in value investing, Hoover Capital Management (HCM) has always been intrigued by the interplay between base rates and case rates in both the market and nature. Before delving deeper, let’s define these crucial terms: Base Rate: In investing, as in assessing natural phenomena, the base rate refers to the underlying frequency …
Continue reading “Value Investing’s Resilience: Sharks & Lightning Insights”
In the world of investing, there are few names as revered as Sir John Templeton. A pioneer of global investing and the founder of the Templeton Growth Fund, Templeton’s investment philosophy has stood the test of time, consistently delivering value to investors. His approach to investing, which emphasizes value and contrarian thinking, resonates strongly with …
Value investing, a strategy that involves buying securities that appear underpriced by some form of fundamental analysis, has historically shown to outperform other investment strategies for several reasons: Market inefficiencies: Despite efficient market theory, which states that all available information is already factored into a security’s price, markets can often misprice securities. This can be …
Continue reading “Value Investing: Exploring the Reasons Behind Its Historical Outperformance”
The Art of Value Investing: Unlocking Hidden Gems in the Stock Market Have you ever wondered how some investors seem to have a magic touch when it comes to picking winning stocks? They don’t rely on luck or gut feelings; instead, they follow a strategic approach called value investing. Value investing is a time-tested investment …
Neuroscience and Investing: Enhancing Global Value Strategy through Emotional Intelligence HCM believes it’s crucial to recognize the profound influence of ‘affect’ or emotional responses on investment decisions. Drawing lessons from the dot-com bubble, the FANMAG (Facebook, Amazon, Netflix, Microsoft, Apple, Google) era, and the most recent surge in AI-centric businesses, such as Nvidia, can provide …