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Podcast: Excess Returns
Episode: The Impact of COVID-19 on Value Investing
Description: The process of using past fundamentals to try to predict future prices has been in place for a very long time, and there is substantial academic evidence to support it. One of the major challenges of it; however, is what happens when we are confronted with breaking points that are so large that a company’s past results prior to it occurring might tell us very little about what it will look like after. The current situation with COVID-19 might be the most significant situation of this type that any of us will experience in our investing lifetimes.
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