There's no replacement for an ability to identify and buy great businesses at great valuations with the intention of holding them forever, but Enduring Value hinges on the ability of an investor to focus on
the qualitative factors of a business over the long - term instead of sticking to an absolute price and over-analyzing a valuation based on quantitative values.
Even if that multiple is based on historical ranges (medians or averages) or is comparable to industry peers or the market as a whole, investors fall short of capturing the uniqueness of a company's future cash flow stream and balance sheet via a discounted cash flow process, which considers all of
the qualitative factors of a company — from a competitive assessment to the company's efficiency initiatives and beyond.
Not exact matches
If a company posted its best earnings
of the last five years two years ago and has been lackluster since, perhaps it's under increasing competitive pressure, so have a look at
qualitative factors showing what's going on.
In my part
of the world (India) corporate managers largely use
qualitative factors over quantitative
factors while evaluating decisions.
The winners were selected by a panel
of industry judges based on a mix
of quantitative and
qualitative factors.
It is often
qualitative factors such as company culture, management's approach toward capital allocation, or customer service, that can yield critical insights into a company's sources
of competitive advantage.
«While we can run spreadsheets with the best
of them, we really emphasize understanding the
qualitative factors that drive the numbers.
The Forbes ranking
of America's Top Wealth Advisors, developed by SHOOK Research, is based on an algorithm
of qualitative and quantitative data, rating thousands
of wealth advisors with a minimum
of seven years
of experience and weighing
factors like revenue trends, assets under management, compliance records, industry experience and best practices learned through telephone and in - person interviews.
In considering the
qualitative merits
of a compensation program, we review industry, company size, maturity, financial position, historical pay practices and any other relevant internal and external
factors.
They consider quantitative and
qualitative factors in their research, and the weighting
of each pillar may vary.
Our appraisal
of what any company is worth is based on quantitative
factors like its growth rate and returns on incremental capital as well as on
qualitative factors like its management quality and stability
of cash flows.
These behavioral
factors in
of themselves will not make a complete holistic picture
of a digital buyer persona but they will contribute to the understanding that can accompany
qualitative and experiential analysis.
Graham & Dodd advise a number
of strategies to find value stocks, ranging from
qualitative factors like identifying industry trends and a company's management team to quantitative
factors like book value, P / E ratio, and sales - to - price.
Academics emphasized the correct estimation
of one particular
factor, alongside the importance
of BOJ forward guidance alongside lengthening maturities
of BOJ bondholdings in the «
qualitative» portion
of QQE.
This continued a theme pervading all his previous work, and paralleled very closely a statement by Whitehead in Process and Reality, where he says that triviality (in effect, the opposite
of qualitative meaning) «arises from lack
of coordination in the
factors of the datum, so that no feeling arising from one
factor is reinforced by any feeling from another
factor» (PR 132).
Three
factors stand out as essential to Whitehead's account
of emotional experience: (1) active response on the part
of the subject, (2) the
qualitative character
of this response, and (3) the object as causally related to the subjective response.
Managers can measure political risk using quantitative and
qualitative factors describing the political system in a country; e.g., repetitive government / parliament elections before the end
of their term, potential internal and external conflicts, ethnic structure diversity, history
of the country, non-democratic political system, weak legislative power
of the parliament, corrupted authorities, etc..
The authors also note that driver behaviour is a hugely important and unquantified
factor, they urge more
qualitative research in this area and note «in order to reduce perceived risk and encourage more cycling... reducing or calming existing motorised traffic must be explored first... lane width is the most significant variable to achieve a sufficient vehicle passing distance... the provision
of narrow (< 2 m) cycle lanes... may be insufficient... Reconsideration
of the entire road design and further exploration
of driver behavioural
factors is required.»
In order to explore the
factors that hinder and help individuals transition from long - term residential substance abuse treatment centers to the community, Dr. Manuel and her collaborators, Dr. Obie Nichols and Ms. Erin Palmer, from Services for the UnderServed, Inc., (SUS) conducted a
qualitative socio - ecological model - based study, «Barriers and Facilitators to Successful Transition from Long - Term Residential Substance Abuse Treatment,» the findings
of which were recently presented at the 2016 Alcoholism and Substance Abuse Providers
of New York State conference.
The simulations reproduce this unusual temperature dependence in a
qualitative way, without the use
of adjustable parameters for the protein's Franck - Condon
factors.
Future studies may want to examine the relationship between psychosocial /
qualitative factors with sexual activity and energy expenditure which could explain how these variables could affect overall health and quality
of life.
Based on a quantified
qualitative data analysis
of open - ended questions, five facilitative
factors were identified as (a) individual accountability, (b) affective team support, (c) the presence
of a positive group leader, (d) consensus building skills, and (e) clear instructions.
Qualitative analysis identified key
factors that impacted lesson implementation and teachers» analysis
of student learning.
In this
qualitative study, drawing from social - ecological and critical theories, multiple
factors, such as the ability - level and gender
of the child, school policies, and the prevalent stigma surrounding disability are examined to understand how they interact to shape educators» attitudes and responses to violence.
The combination
of skills these individuals bring to our team - from statistical and data analysis, to experience conducting surveys, interviews, and focus group or panel discussions - allows APA to examine the full array
of quantitative and
qualitative factors that can influence the development
of education policy.
Select English language arts / literacy items include a text complexity analysis that explains how quantitative and
qualitative factors were evaluated to determine the appropriate grade level
of a passage.
According to her attorneys, when the percentages were calculated, the Superintendent deserved $ 6,180
of $ 12,000 for the
qualitative measures and $ 9,270
of $ 18,000 for the quantitative
factors.
This section extends that line
of inquiry to all eight
of these district conditions identified earlier, plus additional district
factors that emerged from our
qualitative inquiries.184
In the early days he employed more common value investing methods, whereas he currently
factors in the
qualitative features
of a business more heavily.
The managers use a combination
of qualitative and quantitative analysis to assess normalized earning power
of companies they regard as industry leaders weighed down by cyclical or transitory
factors.
Other
factors are fee analysis, the amount
of assets in a fund, and
qualitative factors such as where the manager went to college.
There were a few studies that suggested ways
of narrowing down the field by eliminating funds that had certain characteristics such as the highest fees, or only including funds that had certain
qualitative features such as a large personal stake in the fund by the manager, but no single
factor worked consistently.
Charlie Munger makes two key points here: 1) some bargains are only visible if you understand
qualitative factors and 2) there sometimes are catalysts that can boost the value
of the stock even further based on
factors like scale advantages, favorable regulatory changes, improving secular phenomenon and better systems or business momentum.
Value investors who follow fundamental analysis typically look at both
qualitative (business model, governance and target market
factors) and quantitative (ratios and financial statement analysis) aspects
of a business to see if the business is currently out
of favor with the market and is really worth much more than its current valuation.
They consider quantitative and
qualitative factors in their research, and the weighting
of each pillar may vary.
«
Qualitative factors suffer from the same basic problem: It is impossible to determine the extent to which they are already reflected in the price
of a given security.....
The team prefers to allocate the most capital to our best ideas, defined by the combination
of the
qualitative and quantitative
factors above that lead to an assessment
of the risk and reward associated with each investment idea.
The team uses a combination
of these
qualitative and quantitative
factors to determine the risk / reward profile
of each company.
With the help
of others, including his partner Charlie Munger, Buffett learned to embrace
qualitative factors that Graham eschewed.
Did you enjoy investing more when you were analyzing
qualitative and quantitative
factors of individual equities?
October 2008 by Wayne Thorp Philip Fisher was one
of the first money managers to focus on
qualitative factors.
The mosaics take the form
of two
factor screens, multi-
factor models, and integrated investment strategies that combine quantitative results with
qualitative vetting and risk management.
-- Can't STRESS this one enough: If I identify a stock as under - valued, it doesn't necessarily mean I'd touch it with a barge - pole, regardless
of upside potential... obviously, there are far more quantitative &
qualitative factors to consider before buying a stock!
I'd be very happy to see some research on any other
factors influencing the performance
of sub-cash stocks so I could move from a
qualitative analysis to a quantitative one.
I study their method
of valuation, the
qualitative and quantitative elements that
factored into the decision and draw knowledge from why it worked or didn't.
The best test
of whether a moat exists is quantitative, even though the
factors that create it are mostly
qualitative.
(In real life, you should consider a broad range
of qualitative and quantitative
factors and will probably want to construct a more sophisticated portfolio.)
But they can serve as an additional
qualitative factor if you're stuck choosing between a number
of oilies.
Because some
qualitative factors are unquantifiable, the «Best Credit Card» pages are, to a degree, a subjective list based on our editors» assessments and opinions
of the
qualitative and quantitative aspects
of the offers.
Question: A fan
of yours from nearby, in Jonesboro, Ark. — I'm curious what initial measures /
qualitative factors catch your attention?