6min chapter

Animal Spirits Podcast cover image

Talk Your Book: Managing Risk Like an Actuary

Animal Spirits Podcast

CHAPTER

How Do You Know if You're Overpriced?

The h factor tells you that if a company's got a low ge factor, it means the company has been able to deliver the growth implied in at stock price. And we want to avoid companies where people or investors are pricing things they that who knows where that's going. You don't know. The risk stock has been impacted by human behavior. That's what we focus on because that's really where you're going to lose money. It's coming from over pricing. So the h factor does exactly that. But i would tell you, since two thousand and 19 when testler's explosive run began, teser's h factor score has stayed relatively low. What is that telling you

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