The Experts and the Evidence

A PRACTICAL GUIDE TO STOCK INVESTING

Explore and apply celebrated investing strategies with practical tools from an expert team of finance professors

In The Experts and the Evidence: A Practical Guide to Stock Investing, a veteran team of finance researchers and practitioners delivers a one-of-a-kind explanation of how to use data and analytics tools to test and implement the philosophies and strategies of well-known investing experts.

Combining a comprehensive discussion of the investment philosophies of renowned investors with rigorous testing and implementation, the authors provide a hands-on tool for starting and maintaining a diversified portfolio. Readers will also find:

• Quantitative explorations of popular investing strategies.
• Useful tools for systematically exploring different investment approaches.
• Discussions of value, growth, contrarian, portfolio, and factor investing, as well as technical analysis and advanced quantitative investing.

An ideal resource for readers familiar with the basics of the financial markets and looking for a guide to a range of proven investment approaches, The Experts and the Evidence is also an essential read for advanced undergraduate and graduate students seeking a real-life informational and analytical system for the application of investment strategies.

List of Practical Applications 3

Acknowledgements 4

About the Authors 5

Chapter 1. Introduction – Experts and Evidence 7

Chapter 2. Warren Buffett – The Greatest Investor? 14

Chapter 3. Philip Fisher – Growth Investor 36

Chapter 4. David Dreman – The Master Contrarian? 66

Chapter 5. Harry Markowitz – The Father of Portfolio Theory 88

Chapter 6. Behavioural Finance – Some Useful Insights 114

Chapter 7. Technical Analysis 138

Chapter 8. Quants and Alternative Investments 173

Appendix I. Introduction to BLOOMBERG PROFESSIONAL® 195

Appendix II. Methods of Valuation 198

About the Companion Website 210

Index 211

A PRACTICAL GUIDE TO STOCK INVESTING

Explore and apply celebrated investing strategies with practical tools from an expert team of finance professors

In The Experts and the Evidence: A Practical Guide to Stock Investing, a veteran team of finance researchers and practitioners delivers a one-of-a-kind explanation of how to use data and analytics tools to test and implement the philosophies and strategies of well-known investing experts.

Combining a comprehensive discussion of the investment philosophies of renowned investors with rigorous testing and implementation, the authors provide a hands-on tool for starting and maintaining a diversified portfolio. Readers will also find:

• Quantitative explorations of popular investing strategies.
• Useful tools for systematically exploring different investment approaches.
• Discussions of value, growth, contrarian, portfolio, and factor investing, as well as technical analysis and advanced quantitative investing.

An ideal resource for readers familiar with the basics of the financial markets and looking for a guide to a range of proven investment approaches, The Experts and the Evidence is also an essential read for advanced undergraduate and graduate students seeking a real-life informational and analytical system for the application of investment strategies.