In a previous post, I described a new index introduced by the Cornell Capital Group called the CCG Quarantine Index. The index tracks the performance of the stocks that are likely to benefit from the fact that millions of people are more or less confined to their homes during the lockdown. The index is composed
Economic Insights
CORNELL CAPITAL GROUP
Up through the end of 2006, one of the most widely reported results in empirical studies of investing was the so-called “value effect” which stated that value stocks tended to outperform growth stocks. As a quick review, a growth stock is one for what the price is high relative to measures such as book value
Bradford Cornell and Aswath Damodaran In the last decade, companies have come under pressure to be socially conscious and environmentally responsible, with the pressure coming sometimes from politicians, regulators and interest groups, and sometimes from investors. The argument that corporate managers should replace their singular focus on shareholders with a broader vision, where they also
Interpreting movements in the stock market is difficult enough in normal times. The Covid-19 crisis has made it all the more difficult with the market lurching up and down as it attempts to process news about the virus and its economic implications. To help investors make sense of the financial gyrations, the Cornell Capital Group
Abstract: The performance of Renaissance Technologies’ Medallion fund provides the ultimate counterexample to the hypothesis of market efficiency. Over the period from the start of trading in 1988 to 2018, $100 invested in Medallion would have grown to $398.7 million, representing a compound return of 63.3%. Returns of this magnitude over such an
https://www.valuewalk.com/2020/01/big-market-delusion/ Soon after its introduction as a private company, the market value of Uber began to explode. One reason was the potential size of the market. Uber was billed not only as a potential global ride sharing company, but as a new kind of transportation company. If Uber could capture a meaningful fraction of this
There is nothing more exciting for a nascent business than the perceived presence of a big market for its products and services, and the allure is easy to understand. In the minds of entrepreneurs in these markets, big markets offer the promise of easily scalable revenues, which if coupled with profitability, can translate into large
In April of 2018, Rob Arnott, Shane Sheppard and I published an article entitled, Yes, It’s a Bubble, So What?. Given the turbulence of the intervening fifteen months, and to hold our feet to the fire, we felt a follow-up was in order (Bubble, Bubble, Toil and Trouble). For perspective, both articles are available for
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