Ben Graham Was a Quant: Raising the IQ of the Intelligent by Steven P. Greiner

By Steven P. Greiner

Innovative insights on growing versions that can assist you develop into a disciplined clever investor

The pioneer of price making an investment, Benjamin Graham, believed in a philosophy that is still by means of a few of ultra-modern so much winning traders, equivalent to Warren Buffett. a part of this philosophy contains adhering on your inventory choice strategy come "hell or excessive water" which, in his view, used to be the most vital points of investing.

So, if a quant designs and implements mathematical versions for predicting inventory or industry pursuits, what larger option to stay target, then to speculate utilizing algorithms or the quantitative technique? this is often precisely what Ben Graham used to be a Quant will assist you to do. beginning with a quick background of quantitative making an investment, this publication speedy strikes directly to specialize in the basic and monetary elements utilized in choosing "Graham" shares, exhibit the way to try out those elements, and speak about easy methods to mix them right into a quantitative model.

  • Reveals how you can create customized monitors in line with Ben Graham's equipment for safeguard selection
  • Addresses what it takes to discover these elements so much influential in forecasting inventory returns
  • Explores find out how to layout types in keeping with different kinds and overseas strategies

If you need to develop into a greater investor, you would like stable insights and the right kind assistance. With Ben Graham was once a Quant, you are going to obtain this and lots more and plenty extra, as you the way to create quantitative types that stick with within the footsteps of Graham's price philosophy.

Show description

Read or Download Ben Graham Was a Quant: Raising the IQ of the Intelligent Investor (Wiley Finance) PDF

Similar investing books

The City: A Guide to London Global Financial Centre

By means of many measures, London is now the major monetary middle on the earth, outpacing ny urban and Hong Kong. lack of expertise concerning the urban, London's monetary district, is not any longer an choice for these doing company within the worldwide monetary markets. the second one variation of the town offers up to date, accomplished, and suitable insurance of what is going on in London’s monetary providers zone and its evolution because the prime monetary heart in Europe.

Stock Profits: Getting to the Core--New Fundamentals for a New Age (Financial Times Prentice Hall Books)

Conventional tools of studying and picking out shares aren't sufficient anymore -- as thousands of traders have chanced on to their surprise and dismay. the major cause: businesses now systematically distort the working effects that traders rely on for exact research. In inventory earnings: attending to the middle, Michael C.

Investments and portfolio performance

This e-book includes the hot contributions of Edwin J. Elton and Martin J. Gruber to the sphere of investments. the entire articles during this publication were released within the major finance and financial journals. 16 of the 19 articles were released within the final ten years. This e-book supplementations the sooner contributions of the editors released by way of MIT Press in 1999

Fundamentals of futures and options markets

Directed basically towards undergraduate finance scholars, this article additionally presents sensible content material to present and aspiring execs. in accordance with Hull's suggestions, Futures and different Derivatives, basics of Futures and ideas Markets offers an obtainable evaluate of the subject with no using calculus.

Extra info for Ben Graham Was a Quant: Raising the IQ of the Intelligent Investor (Wiley Finance)

Sample text

For even longer holding periods of three years or more, the independent variables are macroeconomic in nature (GDP, unemployment rates, CPI, spread between long and short Treasury yields, yield curve slope). The reason the underlying factors change depending upon the holding period has much to do with the correlations of 20 BEN GRAHAM WAS A QUANT these variables with assets on these time scales. At least for the shortest and middle range holding periods, the factors are security or company specific.

The normal distribution (Gaussian) is not representative of a future distribution, but it is representative for picking members out of a population and has no future values in it. Because the future has not happened yet, there isn’t a full set of outcomes in a normal distribution created from past experience. When we use statistics like this to predict the future, we are making an assumption that the future will look like today or similar to today, all things being equal, and also assuming extreme events do not happen, altering the normal occurrences.

This is because many investors will have bid up the pricing of stocks that have shown historically good earnings growth concurrently with earnings announcements. However, 12-month past-earnings 24 BEN GRAHAM WAS A QUANT growth fails miserably at being a forecaster of future return. We will see that Graham liked to see earnings growth, but he examined it over years, not over simple 12-month measures. In this case, 12-month past-earnings growth is probably a risk factor because it regresses well with future return statistically, but offers little in the way of alpha.

Download PDF sample

Rated 4.50 of 5 – based on 7 votes