Shows / Excess Returns
Excess Returns
Excess Returns is dedicated to making you a better long-term investor and making complex investing topics understandable. Join Jack Forehand, Justin Carbonneau and Matt Zeigler as they sit down with some of the most interesting names in finance to discuss topics like macroeconomics, value investing, factor investing, and more. Subscribe to learn along with us.
Episodes
Excess ReturnsSix Lessons New Robinhood Traders Could Learn From Peter Lynch
Trading volumes at online brokers have skyrocketed since the Coronavirus crisis began. If there is one lesson these newly minted traders have learned so far…
- Excess Returns
Interview: Bridging Academic Research and Real World Investing with Professor Partha Mohanram
In this episode we are joined by Professor Partha Mohanram. Professor Mohanram is the John H. Watson Chair in Value Investing at the Rotman School at the…
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Four Reasons Value Investing Might Not be Dead Yet
Value investors have fallen on difficult times in the most recent decade. Value's extended underperformance has led many to question whether the strategy still…
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Interview: A Conversation about Buffett, Berkshire & High-Quality Shareholders w/ Professor Lawrence Cunningham
In this episode, we are joined by Lawrence Cunningham. He is a professor at George Washington University and one of the world's leading experts on Warren…
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Have the Fed, Narratives and Passive Flows Broken Fundamental Investing?
Valuing a company (or the market in general) typically involves looking at its price and judging that price relative to its current and projected future…
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Finding Diamonds in the Rough Among Growth Stocks
Buying expensive stocks has historically been a terrible investing strategy. On average, expensive stocks significantly underperform the market as a whole over…
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The Danger of Learning From Your Mistakes
The process of learning from your mistakes is an important part of improving yourself over time both as an investor and as a person. But it requires that you…
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Active Value Investing in a Changing World with Vitaliy Katsenelson
In this episode we are joined by Vitaliy Katsenelson. Vitaliy is the author of the popular Contrarian Edge blog and the CEO of investment firm IMA. As…
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Is the Price/Book Ratio Dead?
The Price/Book ratio has probably been the most important valuation ratio of the past century. If you look at the academic research that supports value…
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Can Warren Buffett Be Quantified?
In this episode, we are going to try something a little different. Our goal at Validea is to capture quantitative strategies that work over the long-term. To…
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The Pros and Cons of Quantitative and Discretionary Investing
We all have a tendency to believe that the way we invest is the best way. As quantitative investors, we can sometimes feel that there is no reason anyone…
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Interview: Timeless Investing and Life Lessons with Jim O’Shaughnessy
In this week's episode we are privileged to be joined by Jim O'Shaughnessy. Jim is a pioneer in quantitative investing and the founder of O'Shaughnessy Asset…
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The Danger of Focusing on What Should Be and Missing What Is
We all have our beliefs about the way that things should work in investing. When the market gets overvalued, we think it should go down. When value stocks…
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Quality and Low Volatility: The Factors That Shouldn't Work
Investing factors that work over time typically do so for one of two reasons: they either produce an excess return by taking on additional risk or they benefit…
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Interview: Systematic Value Investing with Wes Gray
Wes Gray is the founder of Alpha Architect, the author of Quantitative Value and Quantitative Momentum, and an expert in systematic investing. In this…
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An In Depth Look at Momentum Investing
Momentum investing is difficult to understand for many investors. While a concept like value that involves trying to buy stocks at a discount to what they are…
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The Pros and Cons of Factor Timing
We are all trained to buy low and sell high, and it is tempting to conclude that we can do the same thing with factors. But the research suggests that factor…
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The Challenges of Multi-Factor Investing
The basic theory of multi-factor investing is pretty simple. It has been widely proven that factors like value and momentum can outperform the market over long…
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The Impact of COVID-19 on Value Investing
The process of using past fundamentals to try to predict future prices has been in place for a very long time, and there is substantial academic evidence to…
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Psychology and COVID-19 with Dr. Daniel Crosby
In this week's episode we shift gears a little from our usual investing focus. We wanted to spend some time talking about the current COVID-19 crisis and its…
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The Limits to Lessons From Past Bear Markets
Whenever we are confronted with a bear market, we all want to figure out how it will play out. We want to know how big the decline will be. We want to know…
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The Dangers of Hindsight Bias
Whenever any of us analyze the decisions we make in investing, there is always a tendency to think that what we end up knowing in retrospect was obvious at the…
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Interview: Value Investing with Tobias Carlisle
In this week’s Excess Returns, we are trying something new. In addition to our regular episodes, we have decided to periodically talk to some of the people we…
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The Importance of Challenging Your Own Beliefs
Confirmation bias is one of the most damaging biases in investing. All of us want to be right. We all want to think that opinions that disagree with ours don’t…
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Looking at Different Ways to Manage Risk
There are many ways to manage risk in a portfolio. Traditional methods like blending stocks with bonds will work for most investors, but more creative methods…
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Q&A: Answering Investors' Questions in Uncertain and Volatile Times
With the market in the midst of a significant decline and uncertainty reaching levels we haven't seen in many years, we have received many questions about what…
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Some Thoughts on Market Panics
The argument that investors should stay the course during market declines is an easy one to make. It also in most cases is the correct one, since figuring out…
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Some Thoughts on the Struggles of Factor Investing in the Past Decade
The long-term evidence to support factor investing is compelling. Academic work has shown that factors like value and momentum have produced an excess return…
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The Dangers of Headline Investing
The recent market sell off related to the Coronavirus has many investors worried. And with good reason. When panics like this set in, we all tend to focus on…
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The Pros and Cons of Trend Following
To say that the track record of market timers in general is dismal would be an understatement. There are so many factors that impact market returns that…
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The Pitfalls of Back Testing
Back testing is one of the most misused tools in investment management. Almost every back test outperforms the market, but those same strategies often struggle…
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Lessons From Our Most Read Five Questions Interviews
In this week's episode, we talk about the biggest lessons from the first year of our Five Questions interview series. Our Five Questions series features in…
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The Benefits of a Value Composite
Picking the right value metric can be one of the biggest challenges of quantitative value investing. Although the Price/Book is the most widely used value…
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The Perils of Market Forecasting
We have just completed market prediction season. Its the time of year where there are countless forecasts about what the economy will do in the new year. Its…
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The Challenges of Developing a Sell Strategy
As difficult as it is to figure out the right stocks to buy, determining when to sell can be even more challenging. In this episode, we look at the important…
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Bonus: Long Live Value Investing?
After we finished recording this week's episode on the case against value stocks, we kept the recorder rolling and we have included that audio in this short…
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The Case Against Value Stocks
Confirmation bias is one of the biggest problems in investing. We all have a set of core beliefs, and we tend to surround ourselves with people who also…
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The Double Edged Sword of Avoiding Value Traps
Many value stocks are cheap because they deserve to be. Some of them no longer have sustainable businesses, and as a result their current discounted multiple…
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Lessons From the March For the Fallen
In this episode, we discuss Justin's experience participating on the Alpha Architect team in last year's March for the Fallen. and how some of the lessons he…
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Six Common Misconceptions About Factor-Based Strategies
Factor strategies have grown exponentially in the past decade. Almost every major asset manager now offers their variation of things like value, momentum…
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The Rising Bar for Active Management
The market has always been tough to beat, but the ability to investors to gain inexpensive exposure to factors like value and momentum has made the job of…
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The Mechanics of Value Investing
There is a tendency to believe that all value investing strategies are similar. But beneath the surface, many value approaches couldn’t be any more different…