Topic
Undervalued stock
About: Undervalued stock is a research topic. Over the lifetime, 42 publications have been published within this topic receiving 2137 citations.
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TL;DR: In this paper, the authors comprehensively analyze how repurchase motives, details, and consequences vary over the business cycle and find that firms buy back stocks to bring up undervalued stock price or to enhance market liquidity, and their repurchase announcements are accompanied by higher short-term stock returns and a lower completion rate.
Abstract: Using a dataset that covers details of repurchase cases across the globe, we comprehensively analyze how repurchase motives, details, and consequences vary over the business cycle. We find that in economic recession, firms buy back stocks to bring up undervalued stock price or to enhance market liquidity, and their repurchase announcements are accompanied by higher short-term stock returns and a lower completion rate. In expansion periods, firms repurchase to distribute excess cash; their announcements are followed by less inefficient investment, higher long-term returns and a higher completion rate.
2 citations
01 Jan 2016
TL;DR: In this article, the authors describe how instead of enjoying a good book with a cup of coffee in the afternoon, instead they are facing with some malicious bugs inside their laptop, and they have knowledge that, people have look hundreds times for their chosen novels like this warren buffett accounting book reading financial statements for value investing, but end up in infectious downloads.
Abstract: Thank you very much for downloading warren buffett accounting book reading financial statements for value investing. Maybe you have knowledge that, people have look hundreds times for their chosen novels like this warren buffett accounting book reading financial statements for value investing, but end up in infectious downloads. Rather than enjoying a good book with a cup of coffee in the afternoon, instead they are facing with some malicious bugs inside their laptop.
1 citations
Book•
01 Dec 2009
TL;DR: A companion volume to the successful Buffettology series, "Warren Buffett's Management Secrets" as discussed by the authors is filled with anecdotes and quotes that show how Buffett's life philosophies are reflected in his business decisions and in the way he manages people and businesses.
Abstract: Even in today's economic climate, when so many investors and major companies are failing, Warren Buffett continues to be successful in all aspects of his life. Mary Buffett and David Clark have written the first book ever to take an in-depth look at Warren Buffett's philosophies for personal and professional management -- what they are, how they work, and how you can use them. Through close examination of Warren Buffett's life and career from his earliest days to now, Buffett and Clark shed light on his decision-making processes and reveal his strategies for keeping on track and maintaining focus. They examine Buffett's inimitable leadership qualities and explain how Warren integrated what he learned over time into a winning management formula and became not only the manager whom other managers want to emulate but also the second richest man in the world. A true companion volume to Buffett and Clark's successful Buffettology series, "Warren Buffett's Management Secrets" is filled with anecdotes and quotes that show how Buffett's life philosophies are reflected in his business decisions and in the way he manages people and businesses. This insider's view into Warren Buffett's management techniques offers simple solutions for success to newcomers and seasoned Buffettologists alike and illustrates how and why success in business and life usually go hand in hand.
1 citations
TL;DR: In his 2008 letter to shareholders, Warren Buffett presented a critique of the Black-Scholes option pricing model as a tool for valuing long-dated options, including options that Berkshire had written as mentioned in this paper.
Abstract: In his 2008 letter to Berkshire shareholders, Warren Buffett presented a critique of the Black-Scholes option pricing model as a tool for valuing long-dated options, including options that Berkshire had written. Given Mr. Buffett’s track record, it worth investigating precisely why he thinks that the Black-Scholes model fails to provide a fair value for long-dated options. Unfortunately, the alleged deficiencies in the model are not transparent because Mr. Buffett’s letter fails to develop his viewpoint in terms of option pricing theory. This short article fills the gap by interpreting Mr. Buffett’s argument in the context of option pricing theory. It turns out that Mr. Buffett is really making a statement about political economics more than option pricing.
1 citations
Posted Content•
TL;DR: The ESSAYS OF WARREN BUFFETT: LESSONS FOR CORPORATE AMERICA as mentioned in this paper summarizes some of the major themes in Buffett's thought and argues that, in a time of financial abstraction and shifting risk, there is much to be said for insisting on plain speaking and taking responsibility.
Abstract: Warren Buffett, for many years the wealthiest financier in the United States, is once again in the news, both for making money in the midst of the credit crisis, and as the subject of a major biography. Perhaps the best way to begin understanding Buffett's significance for American capitalism, however, is not through journalism or biography, but through Buffett's own thinking and writing about business. The recently issued THE ESSAYS OF WARREN BUFFETT: LESSONS FOR CORPORATE AMERICA, selected, arranged and introduced by Lawrence Cunningham, provides a marvelous introduction to Buffett's thinking on investing, corporate governance, and many other aspects of business life. This book review essay summarizes some of the major themes in Buffett's thought, and argues that, in a time of financial abstraction and shifting risk, there is much to be said for insisting on plain speaking and taking responsibility.
1 citations