We Study Billionaires - The Investor’s Podcast Network TIP 049 : Quantitative Value Investing (Investing Podcast)
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Aug 23, 2015 Discussing the philosophy behind value investing ETFs, applying growth investing principles, and analyzing historical returns. Exploring tax implications of ETFs vs. mutual funds, navigating fixed income trading complexities, and value investing strategies in energy markets. Empowering entrepreneurs with Shopify and delving into diversification, psychology, and stock selection criteria.
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ETF Tax Efficiency Explained
- ETFs allow deferring capital gains taxes because of in-kind trading via authorized participants.
- This tax arbitrage exploits differences between how banks and individuals are taxed on security transfers.
ETF Liquidity Mirrors Underlying Assets
- ETF liquidity reflects the liquidity of underlying assets through daily arbitrage.
- During crises, ETF liquidity won't outperform underlying junk bonds, so ETFs don't worsen liquidity problems.
Junk Bonds Are Risky Equity Alternatives
- Junk bonds behave like lower beta equities and share risk characteristics with stocks.
- Investors should focus on buying cheapest, best-value equity-like assets rather than junk bonds with uncompensated risks.