The Two Big Strategic Mistakes That Investors Make
Research finds a discrepancy between what people plan to do when trading—and what they actually do.
The Two Big Strategic Mistakes That Investors MakeWhy cash profits are the best predictor of stock performance
Firms that are more profitable today on a cash basis could earn higher future returns.
Returns for a portfolio of companies with strong cash-based earnings were more than double those for a portfolio based on operating profit or accruals.
Ray Ball, Joseph Gerakos, Juhani Linnainmaa, and Valeri Nikolaev, “Accruals, Cash Flows, and Operating Profitability in the Cross Section of Stock Returns,” Fama-Miller working paper, April 2015.
Research finds a discrepancy between what people plan to do when trading—and what they actually do.
The Two Big Strategic Mistakes That Investors MakeReliable information, not financial literacy, is the main barrier to credit growth.
In Informal Markets, Trustworthy Data Are KeyAccording to the inelastic markets hypothesis, the reason involves fund flows and investor demand.
Why Are Financial Markets So Volatile?Your Privacy
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