by: Lawrence Hamtil
The first half of 2018 comes to a close this week, so I wanted to share the five most popular articles from the first six months of the year:
1. Price Is What You Pay; Value Is What You Get - Nifty Fifty Edition Here is a discussion of the subsequent returns of the high-priced 'Nifty Fifty' growth stocks of the early 1970s, and how lofty valuations affected their intermediate- and long-term performance.
Professor Jeremy Siegel's 1998 study of subsequent earnings growth for the Nifty Fifty:
The FT's Jamie Powell cites my article on the Nifty Fifty, and offers his own analysis, as well as what similarly lofty valuations mean for today's growth darlings:
2. Capex Darlings and the Myth of Short-Termism This article busts the myth that companies that return capital to shareholders - think dividends and buybacks - are cannibalizing their futures by doing so, while demonstrating that companies that do the opposite - invest heavily in things like capex - often underperform.
Alpha Architect's Jack Vogel, PhD, on how "empire builders" - companies that are capital-intensive and spend heavily on investment - are often poor investments relative to shareholder-friendly ones:
3. The Enduring Appeal of Tobacco Stocks I make my case for why tobacco stocks will continue to be rewarding investments for the foreseeable future.
4. Exploring the Low-Volatility Phenomenon: An Interview with Pim van Pfliet, PhD One of the foremost experts on low-volatility stocks discusses why these have proven to be winners over the long-term, and why he thinks that should continue to be the case.
Pim's book, High Returns from Low Risk, which I highly recommend:
5. Your Focus Should Be On Risk, Not Reward Using the historical lessons from the naval battles of World War One, I argue that investors should contemplate adverse outcomes before making long-term investment decisions, and put potential rewards second behind possible risks.
Thanks for reading, and I hope you have a wonderful rest of 2018.
The information provided above is obtained from publicly available sources and it is believed to be reliable. However, no representation or warranty is made as to its accuracy or completeness.
Lawrence Hamtil is a fourteen-year veteran of the financial services industry, having served clients in all aspects of the business during his career, which started in 2002. In 2005, he joined Dennis Wallace of Fortune Financial Services, LLC, becoming, at the time, one of Multi-Financial Securities, Inc's youngest registered representatives. In 2008, Dennis and Lawrence made the decision to become fully independent by founding their own Registered Investment Advisory (RIA), Fortune Financial Advisors, LLC. He serves clients in the United States and Europe. His financial commentary has been referenced in Barron’s online edition.
You can connect with Lawrence on Twitter ( @lhamtil) or via email, firstname.lastname@example.org.