Reasons to Pass : : A Guide to Making Fewer and Better Investments / / Ralph Birchmeier.

• Superior document: Title is part of eBook package: De Gruyter Columbia University Press Complete eBook-Package 2023
• VerfasserIn: Birchmeier, Ralph,
• Place / Publishing House: New York, NY : : Columbia University Press, , [2023]; ©2023
• Year of Publication: 2023
• Language: English
• Physical Description: 1 online resource :; 4 figures, 4 tables

Confidence and conviction are the keys to success in asset management. Analysts projecting these traits become more likely candidates for promotion; clients gravitate to portfolio managers who radiate assurance about future performance. However, these qualities do a disservice to optimal decision making and long-term investment performance. The future is too complex to justify such levels of confidence.In Reasons to Pass, the seasoned practitioner Ralph Birchmeier argues that an optimal portfolio-building strategy means patiently waiting for the few investments worthy of capital allocation. He outlines the principles required for success then examines specific reasons to pass on investments, detailing behavioral biases that disrupt optimal decision making. Although professional and retail investors alike are tempted by various opportunities, the wisdom of experience proves the value of prudence. An investing strategy built to last requires humility and the willingness to accept uncertainty; most of the time, it’s best to pass. Reasons to Pass brings investing back to the basics, helping readers navigate the complexity of the financial landscape and bringing clarity to the investment process. By underscoring the perils of overconfidence and the importance of humility, this book offers invaluable new perspective on investing for the long term.

Table of Contents

Frontmatter -- Contents -- 1. Principles and More -- Introduction -- 1. Reasons to Pass Investment Principles -- 2. Main Street Versus Wall Street A Rigged Market? -- 3. Fundamental Analysis in the Digital Age -- 4. Indexing: A Viable Option -- 2. Reasons to Pass -- Introduction -- 5. Minimum Market Capitalization -- 6. Financial Leverage The Ultimate Killer -- 7. High–Fixed Cost Businesses -- 8. Accounting -- 9. Regulatory Uncertainties -- 10. Corporate Governance -- 11. Asset Liability Mismatch -- 12. Deep Cyclical Companies Near Cycle Peak -- 13. High-Cost Commodity Businesses -- 14. Cash Flow and Earnings Disconnect -- 15. Structurally Declining Businesses -- 16. Obsolescence Risk -- 17. Valuation: A Critical Protector of Capital and Returns -- 18. Lollapalooza Effect -- 3. Reasons to Buy -- Introduction -- 19. Screening -- 20. Growth Stocks -- 21. Core Characteristics of Successful Investors -- 22. Viable, and Buyable, Investment Opportunities -- 23. Selling Discipline -- Conclusion -- Index