Tip Sheet Archive
High Dividend Yield
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Low P/E DJIA
Low P/E TSX60
Low P/B DJIA
Low P/B TSX60
Low P/S DJIA
Stingy Investor Tip Sheet
|Low PB Heat Maps|
I've been investigating the return history of stocks with low
price to book value ratios and you can read about some of my musings in
two articles that were recently published in the Globe and Mail:
+ A time-honoured investing theory collides with new facts
+ When diving for value goes too far
After reading those articles, you might think that the case for
low-P/B investing is grim. I don't think it is. But it isn't
During these investigations I created four heat maps that you might
find interesting. These are big grids with each cell showing the
annual return generated between a starting year and an ending year.
The cells are coloured to highlight particularly good - or bad -
One map shows the returns of stocks in the lowest P/B decile (10) and
a second those of stocks in the second lowest decile (9).
The next two maps show the decile returns minus the returns of the
largest 30% of stocks. The largest 30% of stocks roughly follow the
market's returns and should be reasonably similar to the returns of
the S&P500. These are basically outperformance / underperformance
In all cases the returns are based on data from professor Kenneth
French and are based on value weighted indexes where large stocks
matter more than small stocks. This, hopefully, largely removes the
influence of microcap stocks on the figures.
Consider the maps as raw research materials rather than a polished
publication. But they should be of interest to data hounds.
The heat maps are linked below ...
If you're a current subscriber,
login to get the maps.
If not, subscribe today!
|2/24/2012 10:30 PM EST Permlink save & share||Value Investing|
| Disclaimers: Consult with a
qualified investment adviser before trading. Past performance is a
poor indicator of future performance. The information on this site,
and in its related newsletters, is not intended to be, nor does it
constitute, financial advice or recommendations. The information on
this site is in no way guaranteed for completeness, accuracy or in any
other way. More...