Language : English
Published : 2011-03-14
Pages : 592
This comprehensive reference delivers a toolkit for harvesting market rewards from a wide range of investments. Written by a world-renowned industry expert, the reference discusses how to forecast returns under different parameters. Expected returns of major asset classes, investment strategies, and the effects of underlying risk factors such as growth, inflation, liquidity, and different risk perspectives, are also explained. Judging expected returns requires balancing historical returns with both theoretical considerations and current market conditions. Expected Returns provides extensive empirical evidence, surveys of risk-based and behavioral theories, and practical insights.
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“CAIA Association has developed two examinations that are used to certify Chartered Alternative Investment Analysts. The Level I curriculum builds a foundation in both traditional and alternative investment markets–for example, the range of statistics that are used to define investment performance as well as the many types of hedge fund strategies. The readings for the Level II exam focus on the same strategies, but change the context to one of risk management and portfolio optimization. Level I CAIA exam takers have to work through an outline of terms, be able to identify and describe aspects of financial markets, develop reasoning skills, and in some cases make computations necessary to solve business problems”–
Incorporate economic moat analysis for profitable investing
Why Moats Matter is a comprehensive guide to finding great companies with economic moats, or competitive advantages.This book explains the investment approach used by Morningstar,Inc., and includes a free trial to Morningstar’s Research.
Economic moats-or sustainable competitive advantages-protect companies from competitors. Legendary investor Warren Buffett devised the economic moat concept.Morningstar has made it the foundation of a successful stock-investing philosophy.
Morningstar views investing in the most fundamental sense: ForMorningstar, investing is about holding shares in great businesses for long periods of time. How can investors tell a great business from a poor one? A great business can fend off competition and earn high returns on capital for many years to come. The key to finding these great companies is identifying economic moats that stem fromat least one of five sources of competitive advantage-costadvantage, intangible assets, switching costs, efficient scale, and network effect. Each source is explored in depth throughout this book.
Even better than finding a great business is finding one at a great price. The stock market affords virtually unlimited opportunities to track prices and buy or sell securities at any hour of the day or night. But looking past that noise and understanding the value of a business’s underlying cash flows is the key to successful long-term investing. When investors focus on a company’s fundamental value relative to its stock price, and not where the stock price sits today versus a month ago, a day ago, or five minutes ago, investors start to think like owners, not traders. And thinking like an owner will makes readers better nvestors.
The book provides a fundamental framework for successful long-term investing. The book helps investors answer two key questions: How can investors identify a great business, and when
About the Author
Heather E. Brilliant, CFA, Co-Chief Executive Officer, Morningstar Australasia Prior to assuming her current role, Brilliant led Morningstar’s global equity and corporate credit research teams, consisting of more than 120 analysts, strategists, and directors. Brilliant is a member of the CFA Institute Board of Governors and is a past chairman of the CFA Society of Chicago.
Elizabeth Collins, CFA, Director of Equity Research, North America, Morningstar Collins is responsible for leading Morningstar’s team of North American-based equity research analysts. She has served as chair of Morningstar’s Economic Moat committee, a group of senior members of the equity research team responsible for reviewing all Economic Moat and Moat Trend ratings issued by Morningstar.
Morningstar is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. To find out more about Morningstar’s approach to stock investing and receive a free trial of our research, visit: www.global.morningstar.com/whymoatsmatter.
should investors buy that business to maximize return?
Using fundamental moat and valuation analysis has led to superior risk-adjusted returns and made Morningstar analysts some of the industry’s top stock-pickers. In this book, Morningstarshares the ins and outs of its moat-driven investment philosophy,which readers can use to identify great stock picks for their own portfolios.
For graduate courses in business, economics, financial mathematics, and financial engineering; for advanced undergraduate courses with students who have good quantitative skills; and for practitioners involved in derivatives markets Practitioners refer to it as “the bible;” in the university and college marketplace it’s the best seller; and now it’s been revised and updated to cover the industry’s hottest topics and the most up-to-date material on new regulations. Options, Futures, and Other Derivatives by John C. Hull bridges the gap between theory and practice by providing a current look at the industry, a careful balance of mathematical sophistication, and an outstanding ancillary package that makes it accessible to a wide audience. Through its coverage of important topics such as the securitization and the credit crisis, the overnight indexed swap, the Black-Scholes-Merton formulas, and the way commodity prices are modeled and commodity derivatives valued, it helps students and practitioners alike keep up with the fast pace of change in today’s derivatives markets. This program provides a better teaching and learning experience-for you and your students. Here’s how: *NEW! Available with a new version of DerivaGem software-including two Excel applications, the Options Calculator and the Applications Builder*Bridges the gap between theory and practice-a best-selling college text, and considered “the bible” by practitioners, it provides the latest information in the industry*Provides the right balance of mathematical sophistication-careful attention to mathematics and notation *Offers outstanding ancillaries toround out the high quality of the teaching and learning package.
The rewards of carefully chosen alternative investments can be great. But many investors don’t know enough about unfamiliar investments to make wise choices. For that reason, financial advisers Larry Swedroe and Jared Kizer designed this book to bring investors up to speed on the twenty most popular alternative investments: Real estate, Inflation-protected securities, Commodities, International equities, Fixed annuities, Stable-value funds, High-yield (junk) bonds, Private equity (venture capital), Covered calls, Socially responsible mutual funds, Precious metals equities, Preferred stocks, Convertible bonds, Emerging market bonds, Hedge funds, Leveraged buyouts, Variable annuities, Equity-indexed annuities, Structured investment products, Leveraged funds The authors describe how the investments work, the pros and cons of each, which to consider, which to avoid, and how to get started. Swedroe and Kizer evaluate each investment in terms of: Expected returns Volatility Distribution of returns Diversification potential Fees Trading and operating expenses Liquidity Tax efficiency Account location Role in an asset-allocation program Any investor who is considering or just curious about investment opportunities outside the traditional world of stocks, bonds, and bank certificates of deposit would be well-advised to read this book.