Monthly Archives: April 2009

Is book value meaningless?

By Demian Perry | Published: 21 Apr 2009
In Warren Buffett and the Interpretation of Financial Statements, the price to book ratio is not presented as a particularly useful metric for investors.  But studies show that stocks with low price to book values, when held for a long period of time, will outperform the market.  Who is right, the academics, or the billionaires?
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Confessions of a Day Trader, Part 4: Conclusion

By Demian Perry | Published: 14 Apr 2009
The graph above shows a clear connection between a leading indicator and future stock returns.  That leading indicator is not related to anything technical analysts measure, and there’s a twist in the data that reveals everything that is wrong with technical analysis and day-trading.
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Confessions of a Day Trader, Part 3: The Myopic Market

By Demian Perry | Published: 12 Apr 2009
This morning I crunched more than twenty thousand days of stock market history into excel to see whether the market was totally random, or whether, as I suspected, there were some occassional patterns to be found.  Whether you think the market is totally random or you’re a day trader trying to make a buck off [...]
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