NormR

I might also caution west on the micro-cap end of things. The data might be good and yet result in rather over optimistic return estimates due to bid-ask spread / trading volume effects. I'm not against investing in small fry, but many studies run into real trouble there. I'd also say that the ranking of the "best ratio" to use has a habit of varying over time. Nonetheless, I'm rather fond of several simple quant strategies.

I missed this post. From everything I've seen, using a normalized EBITDA value underperforms using a TTM value. However, I'm still in denial about this fact since it just doesn't make any sense to me. So, until I collect more data, I'm just going to assume nothing about EV/TTM EBITDA versus EV/Normalized EBITDA :) Seems that price to normalized book value works fairly well. (I'm still trying to think that one through.)

Don't dissuade her, brand name pills come with a placebo effect that probably makes the pain meds more effective.

Anyone have a negative opinion on the book?

The return of a familiar face: Bargains in the dark corners of the stock market Thanks Keith!

Alas, the new BB isn't nearly as foldable as the iPhone. I'll take the one I can crumple up in my pocket, thank you very much!

I'd buy that for a dollar! ;) (Sorry, couldn't resist. I've not looked at it, so I can't put a price on it.)

Congrats again! I knew a few days ago, but kept it :-X Chuckle, it was easy to spot via a sedi search. I noticed it last month when I was poking around. :)

There are still frictions at the border from duties, exchange rates, etc. Add in higher costs for retail from wages/benefits/real estate, and the gap is fairly easy to explain.

There are less expensive places in Canada too. Rural areas, smaller cities (Windsor, etc.) Also, keep in mind that the figures I linked are for family income (generally 2 earners). It'll be a bit higher in the big cities. In addition, many big cities follow policies that tend to boost prices. Zoning restrictions, anti-sprawl legislation. The feds help boost prices on the insurance side via the CMHC. Etc. All that said, young families generally have a hard time buying - even with the low rates - without help from family. The real estate market seems quite stretched to me. It's got to the point where you could buy a house in a big centre, or opt for one in a smaller town (or the U.S.) and enjoy a modest retirement based on the price difference.

Median total income: Canada: $74,540 (2012) http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/famil108a-eng.htm

An interview with the author ... http://greenbackd.com/2014/08/27/my-interview-with-benzingas-deep-value-letter-author-tim-melvin-about-my-new-book-deep-value/

I'll be picking up a copy, too bad about the relative lack of quant tho. On the other hand, that should make it more popular around these parts. ;)

It's out now, anyone read it?

Happy to hear that he's still going!

Don't know about the "same way" part, but the Credit Suisse Global Investment Returns Yearbook is a good place for long-term international numbers ... https://publications.credit-suisse.com/tasks/render/file/?fileID=0E0A3525-EA60-2750-71CE20B5D14A7818

You're looking at one of the winners globally. The experience in other countries isn't as good.

Bonus points for providing the formula showing how the difference between the two returns relates to volatility. ;)

I don't know, but it's a huge book.

Thanks guys! If you're looking for some summer reading, James Montier's Behavioural Investing is great. :)

While it can be infuriating looking at instances of excess, the situation is more akin to giving a dog food and then snatching it away while it's eating. The result isn't pretty even if they were given too much to begin with. If you want to keep the dog around, the situation has to be handled delicately or it risks going south quickly.

Taking something away from people is always hard. Sometimes it's better to show them the door and find someone who is eager to work at a lower rate / with fewer perks.

Ouch: A Critique of John Hussman’s Chart of Estimated Future Equity Returns

James Montier's collections ... Behavioural Investing and Value Investing are both good for those going beyond the top 5.

IIRC, small positions are often analyst picks rather than Prem's