Value Investing: International Comparison

Investing in International Financial Markets

financial markets has a major impact on MNCs. First, this type of trading can influence the level of interest rates in a specific country (and therefore the cost of debt to an MNC) because it affects the amount of funds available there. Second, it can affect the price of an MNC’s stock (and therefore the cost of equity to an MNC) because it influences the demand for the MNC’s stock. Third, it e...

Beliefs Regarding Fundamental Value and Optimal Investing

We derive optimal portfolio weights for an investor who has specific beliefs regarding the distribution of a stock price at a future time. For example, a fundamental investor will want to take advantage of the information his analysis provides when constructing a portfolio. In this regard, we examine the optimal weights for models in which the investor believes that there is a range in which th...

Value Investing: Bridging Theory and Practice

Value investing refers to the buying or selling of stocks on the basis of a perceived gap between their current market price and their fundamental value – commonly defined as the present value of the expected future payoffs to shareholders. This style of investing is predicated upon two observations about publicly listed companies and their stock prices: (1) a share of stock is merely a fractio...

Long-term benefits from investing in international real estate

This paper analyses longand short-term co-movements between 14 international real estate stock markets based on bivariate testing for cointegration and correlation analysis. The results indicate that there exist strong long-term relationships within economic and geographical regions, but less long-run linkages between real estate markets in different continents. Thus, investors would benefit fr...

Investing in Value: A Perspective on Digital Preservation