What is wrong with price/book value

Posted by Graeme in Business & Investment at 9:20 am on Monday, 20 February 2012

As so often, Richard Beddard tweeted something interesting that I had to respond to.

The linked PDF argues that price to book value is the most useful valuation measure, more so that earnigs, for two reasons: (more…)

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Nokia + MS: two failures do not make a success

Posted by Graeme in Business & Investment at 11:34 am on Friday, 11 February 2011

There are two things that strike me about the alliance agreed between Nokia and Microsoft:

  1. Combining Nokia’s failed smartphone strategy, with Microsoft’s failed smartphone operating system, is not a receipe for success.
  2. Nokia will now have three smartphone platforms, possibly falling back to two. This continued fragmentation is hardly a great way to get the critical mass then need.


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The Huffington Post and AOL

Posted by Graeme in Internet,Media,Shares at 9:14 am on Tuesday, 8 February 2011

The Huffington Post may not be a bad buy at the price AOL is paying, but that does not mean that AOL is right to buy it. (more…)

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Risk and rationality, investment and life

Posted by Graeme in Business & Investment,Life at 12:09 pm on Wednesday, 24 November 2010

Its fairly obvious that people are not, except for a few analytical souls, rational about risk: they worry obsessively about small risks and ignore ones that matter, and they are often no more rational about investing. (more…)

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Volatility is the best risk measure

Posted by Graeme in Business & Investment at 6:46 pm on Monday, 4 October 2010

I have just rewritten the Moneyterms article on volatility to cover common criticisms of volatility as a risk measure. The key points are that volatility makes intuitive sense when considered properly, correctly corrects for increased upside, and that the critics are unable to come up with a better measure.


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Demand Media IPO

Posted by Graeme in Internet,Shares at 7:37 am on Sunday, 15 August 2010

I usually comment only on British companies (as investments, that is), but I also like to keep an eye on tech and internet companies, and on anything that illustrates a point. Demand Media falls in to both categories. (more…)

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Great crash and credit crunch similarities.

Posted by Graeme in Business & Investment,Economics at 10:59 am on Sunday, 20 December 2009

I have been reading Galbraith’s The Great Crash of 1929 and a lot of similarities have struck me, not all of which seem to have been noticed by everyone. (more…)

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Gold is not an investment

Posted by Graeme in Business & Investment at 9:16 am on Saturday, 19 December 2009

Richard Beddard has been annoying the gold bugs. This puts me in the unusual position of agreeing with him. (more…)

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Google’s “concession” to Murdoch

Posted by Graeme in Business & Investment,Internet at 10:12 pm on Wednesday, 2 December 2009

Everyone seems to be interpreting the changes made by Google News as a victory for Murdoch and others who are trying t extract payments from Google in return for making their content searchable through Google. I disagree, and think it is designed to make life more difficult for those putting up pay walls. (more…)

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How to fix the banking system

Posted by Graeme in Business & Investment,Economics,Politics at 7:42 pm on Wednesday, 2 December 2009

This is a bit less ambitious than my plan to reform capitalism, but the principles are the same.

Too big to fail is too big to exist

Big banks create too much systemic risk, and are far too much of a strain on government finances when they need to be bailed out. (more…)

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