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Deeeeeeep Value
The Idea Farm
September 08, 2024
In partnership with
“What do you think of those fellows in Wall Street who are gambling in gold at such a time as this? For my part, I wish every one of them had his devilish head shot off.”
Research
GMO explains why deep value stocks are their highest conviction long-only investment idea.
Man suggests that liquid alternative strategies, specifically trend-following and long/short quality stocks, could be viewed as the new bonds, providing both diversification and defensiveness.
This evaluates the profitability of an industry-based long-only trend-following portfolio, utilizing 48 industry portfolios from 1926 to 2024.
Bonus Content
Bill Gross shares what lessons Monopoly can teach investors about our financial system, and how they apply to value versus growth today. Link
Drew Dickson digs into the differences between value and growth stocks in Europe & the US. Link
Dating back nearly a century, September has been the only month during which the S&P 500 has averaged a negative return. Link
Tragedy struck when a nonprofit trusted a local financial adviser to help invest $59.6 million from winning Powerball. Link
Ease into investing
“Ease” being the key word. With automated tools like portfolio rebalancing and dividend reinvestment, Betterment makes investing easy for you, and a total grind for your money.
Podcasts
 3/13/24 - 88 minutes | Levitt discusses his career, how the Freakonomics media empire got started, and his recent decision to retire from academics. |
 8/22/24 - 62 minutes | Jason Buck explaining why the impressive historical returns of the US stock market may be an outlier, the importance of looking at real returns, the pros and cons of using leverage, and more. |
What Else Is Happening
Did you miss last week’s email?
Meb Faber spoke with Doug Greenig about the macro environment and trend following.
Deal of the Week
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Any indices and other financial benchmarks shown are provided for illustrative purposes only, are unmanaged, reflect reinvestment of income and dividends and do not reflect the impact of advisory fees. Investors cannot invest directly in an index.