The Week’s Best at VIN

Link to a PDF of the complete Chan and Lakonishok 2004 article. From the abstract: “The evidence suggests that, even after taking into account the experience of the late 1990s, value investing generates superior returns. Common measures of risk do not support the argument that the return differential is a result of the higher riskiness of value stocks.

A look at why Controlled Greed is buying King Pharmaceuticals.

A review of Chan and Lakonishok 2004 paper, “Value and Growth Investing: Review and Update” and how the academic world is recognizing the benefits of value investing. Hat tip: Sham Gad.

With all the nonsense media hullabaloo over Sears’ awful fiscal first quarter, I thought it might be nice to put the whole situation in context.

Both stocks are dividend aristocrats as well as major components of the S&P 500 index. Overall Pepsi has shown a much bigger progress than Coke over the past 10 years. In addition, it’s trading at a bargain multiple relative to its biggest competitor. And last but not least, its dividend growth is much higher than Coke. I would consider adding to Pepsi on dips below $68.

The most frequently appearing sector in the Magic Formula screen holds some great opportunities, as business customers provide investors several advantages over consumers. This article reviews the business models and moat potentials for Business Services companies.

The subject is managing investment risk. What is it? How much can you really take? What can you do about it? We’ll ask renowned financial consultant Charles Ellis; legendary global money manager Jean-Marie Eveillard and Goldman Sachs’ former risk honcho, now quantitative strategy head, Robert Litterman.

During his infamous “Psychology of Human Misjudgment talk” Charlie Munger had a surprise for audience members.

The media never ceases to amaze me. You’d think that, over time, one would get used to the generalization, exaggeration, and pandering, but after reading a certain article this morning, I find that thesis incorrect

Warren Buffet is one of the best investors of our time. He has been investing other people’s money through partnerships and Berkshire Hathaway since the late 1950’s. His results have been truly phenomenal.

Comments on the breaking news that Moody’s will likely cut MBIA and Ambac ratings. Why now? What should these bond insurers do?

The pros and cons of investing in gold.

Could the booting of Ambac from the S&P 500 create a value opportunity with this troubled bond insurer?

The 30 stocks in the Dow Jones Industrials are trading for 82% of Morningstar.com’s estimated fair value, which makes the Dow an undervalued 5-star market. Eleven of the 30 industrials are undervalued 5-star stocks, according to Morningstar.

Todd Sullivan shares some insightful thoughts on Sears Holdings and the current turmoil surround it.