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Mean reversion in earnings
One of the most fascinating examples of the phenomenon of mean reversion was identified by Werner F.M. DeBondt and Richard H. Thaler in Further Evidence on Investor Overreaction and Stock Market...
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5 contrarian candidates for mean reversion
Mean reversion is a favorite investment topic here on Greenbackd (see, for example, my posts on Mean reversion in earnings, Contrarian value investment and Lakonishok, Shleifer, and Vishny’s Contrarian...
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ROIC and reversion to the mean: Part 1
In Michael Mauboussin’s December 2007 Mauboussin on Strategy, “Death, Taxes, and Reversion to the Mean; ROIC Patterns: Luck, Persistence, and What to Do About It,” (.pdf) Mauboussin provides a tour de...
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ROIC and reversion to the mean: Part 2
Yesterday I discussed Michael Mauboussin’s December 2007 Mauboussin on Strategy, “Death, Taxes, and Reversion to the Mean; ROIC Patterns: Luck, Persistence, and What to Do About It,” (.pdf) about...
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ROIC and reversion to the mean: Part 3
Recently I’ve been discussing Michael Mauboussin’s December 2007 Mauboussin on Strategy, “Death, Taxes, and Reversion to the Mean; ROIC Patterns: Luck, Persistence, and What to Do About It,” (.pdf)...
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Equity analysts overoptimistic
A lesson on the perils of projecting earnings from the Harvard Business Review’s The Daily Stat: For the past quarter century, equity analysts’ earnings-growth estimates have been almost 100% too high....
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