{"product_id":"quantitative-value-web-site-isbn-9781118328071","title":"Quantitative Value, + Web Site","description":"\u003cb\u003eA must-read book on the quantitative value investment strategy\u003c\/b\u003e  \u003cp\u003eWarren Buffett and Ed Thorp represent two spectrums of investing: one value driven, one quantitative. Where they align is in their belief that the market is beatable. This book seeks to take the best aspects of value investing and quantitative investing as disciplines and apply them to a completely unique approach to stock selection. Such an approach has several advantages over pure value or pure quantitative investing. This new investing strategy framed by the book is known as quantitative value, a superior, market-beating method to investing in stocks.\u003c\/p\u003e \u003cp\u003e\u003ci\u003eQuantitative Value\u003c\/i\u003e provides practical insights into an investment strategy that links the fundamental value investing philosophy of Warren Buffett with the quantitative value approach of Ed Thorp. It skillfully combines the best of Buffett and Ed Thorp—weaving their investment philosophies into a winning, market-beating investment strategy.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eFirst book to outline quantitative value strategies as they are practiced by actual market practitioners of the discipline\u003c\/li\u003e \u003cli\u003eMelds the probabilities and statistics used by quants such as Ed Thorp with the fundamental approaches to value investing as practiced by Warren Buffett and other leading value investors\u003c\/li\u003e \u003cli\u003eA companion Website contains supplementary material that allows you to learn in a hands-on fashion long after closing the book\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eIf you're looking to make the most of your time in today's markets, look no further than \u003ci\u003eQuantitative Value.\u003c\/i\u003e\u003c\/p\u003e  \u003cp\u003ePreface xi\u003c\/p\u003e \u003cp\u003eAcknowledgments xiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART ONE The Foundation of Quantitative Value 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1 The Paradox of Dumb Money 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eValue Strategies Beat the Market 9\u003c\/p\u003e \u003cp\u003eHow Quantitative Investing Protects against Behavioral Errors 23\u003c\/p\u003e \u003cp\u003eThe Power of Quantitative Value Investing 30\u003c\/p\u003e \u003cp\u003eNotes 32\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2 A Blueprint to a Better Quantitative Value Strategy 35\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGreenblatt’s Magic Formula 36\u003c\/p\u003e \u003cp\u003eIt’s All Academic: Improving Quality and Price 45\u003c\/p\u003e \u003cp\u003eStrategy Implementation: Investors Behaving Badly 54\u003c\/p\u003e \u003cp\u003eNotes 59\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART TWO Margin of Safety—How to Avoid a Permanent Loss of Capital 61\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3 Hornswoggled! Eliminating Earnings Manipulators and Outright Frauds 63\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAccruals and the Art of Earnings Manipulation 64\u003c\/p\u003e \u003cp\u003ePredicting PROBMs 72\u003c\/p\u003e \u003cp\u003eNotes 79\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4 Measuring the Risk of Financial Distress: How to Avoid the Sick Men of the Stock Market 81\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Brief History of Bankruptcy Prediction 83\u003c\/p\u003e \u003cp\u003eImproving Bankruptcy Prediction 85\u003c\/p\u003e \u003cp\u003eHow We Calculate the Risk of Financial Distress 86\u003c\/p\u003e \u003cp\u003eScrubbing the Universe 89\u003c\/p\u003e \u003cp\u003eNotes 91\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART THREE Quality—How to Find a Wonderful Business 93\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5 Franchises—The Archetype of High Quality 95\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Chairman’s Secret Recipe 96\u003c\/p\u003e \u003cp\u003eHow to Find a Franchise 99\u003c\/p\u003e \u003cp\u003eNotes 112\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6 Financial Strength: Foundations Built on Rock 113\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Piotroski Fundamentals Score (F_SCORE) 114\u003c\/p\u003e \u003cp\u003eOur Financial Strength Score (FS_SCORE) 119\u003c\/p\u003e \u003cp\u003eComparing the Performance of Piotroski’s F_SCORE and Our\u003c\/p\u003e \u003cp\u003eFS_SCORE 122\u003c\/p\u003e \u003cp\u003eCase Study: Lubrizol Corporation 123\u003c\/p\u003e \u003cp\u003eNotes 126\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART FOUR The Secret to Finding Bargain Prices 127\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 7 Price Ratios: A Horse Race 129\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Horses in the Race 130\u003c\/p\u003e \u003cp\u003eRules of the Race 133\u003c\/p\u003e \u003cp\u003eThe Race Call 134\u003c\/p\u003e \u003cp\u003eA Price Ratio for All Seasons 141\u003c\/p\u003e \u003cp\u003eThe Offi cial Winner 142\u003c\/p\u003e \u003cp\u003eNotes 143\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 8 Alternative Price Measures—Normalized Earning Power and Composite Ratios 145\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNormalized Earning Power 147\u003c\/p\u003e \u003cp\u003eCompound Price Ratios: Is the Whole Greater than\u003c\/p\u003e \u003cp\u003ethe Sum of Its Parts? 150\u003c\/p\u003e \u003cp\u003eNotes 163\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART FIVE Corroborative Signals 165\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 9 Blue Horseshoe Loves Anacott Steel: Follow the Signals from the Smart Money 167\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStock Buybacks, Issuance, and Announcements 169\u003c\/p\u003e \u003cp\u003eInsider Traders Beat the Market 173\u003c\/p\u003e \u003cp\u003eActivism and Cloning 176\u003c\/p\u003e \u003cp\u003eShort Money Is Smart Money 179\u003c\/p\u003e \u003cp\u003eNotes 182\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART SIX Building and Testing the Model 185\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 10 Bangladeshi Butter Production Predicts the S\u0026amp;P 500 Close 187\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSustainable Alpha: A Framework for Assessing Past Results 189\u003c\/p\u003e \u003cp\u003eWhat’s the Big Idea? 191\u003c\/p\u003e \u003cp\u003eRigorously Test the Big Idea 196\u003c\/p\u003e \u003cp\u003eThe Parameters of the Universe 206\u003c\/p\u003e \u003cp\u003eNotes 208\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 11 Problems with the Magic Formula 211\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGlamour Is Always a Bad Bet 216\u003c\/p\u003e \u003cp\u003eImproving the Structure of a Quantitative Value Strategy 218\u003c\/p\u003e \u003cp\u003eOur Final Quantitative Value Checklist 222\u003c\/p\u003e \u003cp\u003eNotes 228\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 12 Quantitative Value Beats the Market 229\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRisk and Return 231\u003c\/p\u003e \u003cp\u003eRobustness 239\u003c\/p\u003e \u003cp\u003eA Peek Inside the Black Box 249\u003c\/p\u003e \u003cp\u003eMan versus Machine 257\u003c\/p\u003e \u003cp\u003eBeating the Market with Quantitative Value 262\u003c\/p\u003e \u003cp\u003eNotes 264\u003c\/p\u003e \u003cp\u003eAppendix: Analysis Legend 265\u003c\/p\u003e \u003cp\u003eAbout the Authors 267\u003c\/p\u003e \u003cp\u003eAbout the Companion Website 269\u003c\/p\u003e \u003cp\u003eIndex 271\u003c\/p\u003e \u003cp\u003e\u003cb\u003eWESLEY R. GRAY, P\u003csmall\u003eH\u003c\/small\u003eD,\u003c\/b\u003e is the founder and executive managing member of Empiritrage, LLC, an SEC-registered investment advisor; and Turnkey Analyst, LLC, a firm dedicated to educating and sharing quantitative investment techniques to the general public. He is also an assistant professor of finance at Drexel University’s LeBow College of Business, where his research focus is on value investing and behavioral finance. Professor Gray teaches graduate-level investment management and a seminar on hedge fund strategies and operations. His professional and leadership experiences include over fourteen years building systematic trading systems, trading special situations, and service as a U.S. Marine Corps intelligence officer (Captain) in Iraq and various posts in Asia. Dr. Gray earned an MBA and a PhD in finance from the University of Chicago Booth School of Business. He graduated magna cum laude with a BS in economics from the Wharton School, University of Pennsylvania.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eTOBIAS E. CARLISLE, LLB, \u003c\/b\u003eis the founder and managing member of Eyquem Investment Management LLC, portfolio manager of the Eyquem Fund LP, and the author of the award-winning website greenbackd.com, which covers deep value, contrarian, and activist investment strategies. He has extensive experience in activist investment, company valuation, public company corporate governance, and mergers and acquisitions law. Prior to founding Eyquem, Carlisle was an analyst at an activist hedge fund, general counsel of a company listed on the Australian Stock Exchange, and a corporate advisory lawyer. As a lawyer specializing in mergers and acquisitions, he has advised on transactions across a variety of industries in the United States, the United Kingdom, China, Australia, Singapore, Bermuda, Papua New Guinea, New Zealand, and Guam, ranging in value from $50 million to $2.5 billion. He is a graduate of the University of Queensland in Australia with degrees in law and business (management).  \u003c\/p\u003e\u003cp\u003eLegendary investment gurus Warren Buffett and Ed Thorp represent different ends of the investing spectrum: one a value investor, the other a quant. While Buffett and Thorp have conflicting philosophical approaches, they agree that the market is beatable.\u003c\/p\u003e \u003cp\u003eIn \u003ci\u003eQuantitative Value,\u003c\/i\u003e Wesley Gray and Tobias Carlisle take the best aspects from the disciplines of value investing and quantitative investing and apply them to a completely unique and winning approach to stock selection. As the authors explain, the quantitative value strategy offers a superior way to invest: capturing the benefits of a value investing philosophy without the behavioral errors associated with “stock picking.” To demystify their innovative approach, Gray and Carlisle outline the framework for quantitative value investing, including the four key elements of the investment process: \u003c\/p\u003e\u003cul\u003e\n\u003cli\u003e \u003cb\u003eHow to avoid stocks that can cause a permanent loss of capital:\u003c\/b\u003e Learn how to uncover financial statement manipulation, fraud, and financial distress\u003c\/li\u003e \u003cli\u003e \u003cb\u003eHow to find stocks with the highest quality:\u003c\/b\u003e Discover how to find strong economic franchises and robust financial strength. Gray and Carlisle look at long-term returns on capital and assets, free cash flow, and a variety of metrics related to margins and general financial strength\u003c\/li\u003e \u003cli\u003e \u003cb\u003eThe secret to finding deeply undervalued stocks:\u003c\/b\u003e Does the price-to-earnings ratio find undervalued stocks better than free cash flow? Gray and Carlisle examine the historical data on over 50 valuation ratios, including some unusual metrics, rare multi-year averages, and uncommon combinations\u003c\/li\u003e \u003cli\u003e \u003cb\u003eThe five signals sent by smart money:\u003c\/b\u003e The book uncovers the signals sent by insiders, short sellers, shareholder activists, and institutional investment managers\u003c\/li\u003e\n\u003c\/ul\u003e \u003cp\u003eAfter detailing the quantitative value investment process, Gray and Carlisle conduct a historical test of the resulting quantitative value model. Their conclusions are surprising and counterintuitive.  \u003c\/p\u003e\u003cp\u003eThis reliable resource includes a companion website that offers a monthly-updated screening tool to find stocks using the model outlined in the book, an updated back-testing tool, and a blog about recent developments in quantitative value investing. \u003c\/p\u003e\u003cp\u003eFor any investor who wants to make the most of their time in today’s complex marketplace, they should look no further than \u003ci\u003eQuantitative Value.\u003c\/i\u003e\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989897396453,"sku":"NP9781118328071","price":85.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118328071.jpg?v=1761785834","url":"https:\/\/k12savings.com\/products\/quantitative-value-web-site-isbn-9781118328071","provider":"K12savings","version":"1.0","type":"link"}