Equity Investments

Stock Price Synchronicity, Crash Risk, and Institutional Investors

CFA Digest

Differentials in stock price synchronicity is a result of better monitoring by long-term institutional investors, which ensures timely information dissemination regarding the firm’s risk and forces managers to take timely corrective actions.

How Well Do Stock Prices Reflect Intrinsic Values?

John C. Bogle | Conference Proceedings Quarterly

A legendary fund manager champions the importance of low-cost, diversified portfolios, with dividend yields and earnings growth as the key sources of long-term investment returns. The ownership of mutual fund management companies by financial conglomerates creates an agency conflict that does not serve the interests of shareholders.

Bargain Hunting in Small-Cap Stocks

Conference Proceedings Quarterly

Successful investing requires a mix of art and science, flexibility without slavish devotion to a particular style, patience, and good fundamental analysis. The author reviews two case studies of small-cap stocks to illustrate how each of these factors plays a role in turning a bargain into a real winner.

Insights from an Indexing Pioneer

Take 15 Series

Gus Sauter, who managed Vanguard’s flagship index funds during a period of exponential growth, reflects on the merits of passive and active investing, while sharing his thoughts on financial industry innovation.