Examining The Performance of A Value Investing Heuristic: Evidence From The S&P/Tsx 60 From 2001-2011

Volume: 2 Number: 4 December 1, 2013
  • Eben Otuteye
  • Mohammad Siddiquee
Journal of Business Economics and Finance Cover
Journal of Business Economics and Finance
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Examining The Performance of A Value Investing Heuristic: Evidence From The S&P/Tsx 60 From 2001-2011

Abstract

Heuristics are useful practical tools for cutting through the complex confluence of uncertainty, limited information and bounded rationality. We develop a simple heuristic for making value investing decisions based on profitability, financial stability, susceptibility to bankruptcy, and margin of safety. As an empirical test, we apply this heuristic to the S&P/TSX 60 group of companies of the Toronto Stock Exchange. Analysis of the data shows that the portfolio that is picked from the S&P/TSX 60 by the heuristic has desirable characteristics required of value portfolios. Thus the heuristic can be viewed as a reliable set of value investing decision criteria.

References

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Details

Primary Language

English

Subjects

-

Journal Section

-

Authors

Eben Otuteye This is me

Mohammad Siddiquee This is me

Publication Date

December 1, 2013

Submission Date

November 4, 2014

Acceptance Date

-

Published in Issue

Year 2013 Volume: 2 Number: 4

IZ

https://izlik.org/JA83YC84GL

Cite

RIS / Bibtex
APA
Otuteye, E., & Siddiquee, M. (2013). Examining The Performance of A Value Investing Heuristic: Evidence From The S&P/Tsx 60 From 2001-2011. Journal of Business Economics and Finance, 2(4), 67-81. https://izlik.org/JA83YC84GL
AMA
1.Otuteye E, Siddiquee M. Examining The Performance of A Value Investing Heuristic: Evidence From The S&P/Tsx 60 From 2001-2011. JBEF. 2013;2(4):67-81. https://izlik.org/JA83YC84GL
Chicago
Otuteye, Eben, and Mohammad Siddiquee. 2013. “Examining The Performance of A Value Investing Heuristic: Evidence From The S&P Tsx 60 From 2001-2011”. Journal of Business Economics and Finance 2 (4): 67-81. https://izlik.org/JA83YC84GL.
EndNote
Otuteye E, Siddiquee M (December 1, 2013) Examining The Performance of A Value Investing Heuristic: Evidence From The S&P/Tsx 60 From 2001-2011. Journal of Business Economics and Finance 2 4 67–81.
IEEE
[1]E. Otuteye and M. Siddiquee, “Examining The Performance of A Value Investing Heuristic: Evidence From The S&P/Tsx 60 From 2001-2011”, JBEF, vol. 2, no. 4, pp. 67–81, Dec. 2013, [Online]. Available: https://izlik.org/JA83YC84GL
ISNAD
Otuteye, Eben - Siddiquee, Mohammad. “Examining The Performance of A Value Investing Heuristic: Evidence From The S&P Tsx 60 From 2001-2011”. Journal of Business Economics and Finance 2/4 (December 1, 2013): 67-81. https://izlik.org/JA83YC84GL.
JAMA
1.Otuteye E, Siddiquee M. Examining The Performance of A Value Investing Heuristic: Evidence From The S&P/Tsx 60 From 2001-2011. JBEF. 2013;2:67–81.
MLA
Otuteye, Eben, and Mohammad Siddiquee. “Examining The Performance of A Value Investing Heuristic: Evidence From The S&P Tsx 60 From 2001-2011”. Journal of Business Economics and Finance, vol. 2, no. 4, Dec. 2013, pp. 67-81, https://izlik.org/JA83YC84GL.
Vancouver
1.Eben Otuteye, Mohammad Siddiquee. Examining The Performance of A Value Investing Heuristic: Evidence From The S&P/Tsx 60 From 2001-2011. JBEF [Internet]. 2013 Dec. 1;2(4):67-81. Available from: https://izlik.org/JA83YC84GL

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