Vinsamlegast notið þetta auðkenni þegar þið vitnið til verksins eða tengið í það: https://hdl.handle.net/1946/47621
The purpose of this thesis is to analyse whether value investing principles can generate excess returns in current financial market conditions, given the significant changes in information access and the evolving market environment. A new point-based grading system was developed building on the principles of value investing to analyse the financial ratios of 480 companies annually over the past two decades (2003-2023) giving them points if they appear to be under valued. The system was used to create sector-specific portfolios across four sectors: Technology, Retail, Industrial, and Banking, as well as a main portfolio that included the top 20 highest-scoring stocks each year across all sectors. The empirical findings show that the investment strategy put forth in this study achieved a cumulative return of 2,304% beating the 575% return of the proxy (S&P500) during the testing period. However, the proposed investment strategy suffers from significant volatility. Sector-specific analyses showed varying results, with the industrial portfolio being the only sector that demonstrated substantial outperformance. The results suggest that despite technological advancements and a changing market environment, value investing remains a viable strategy for achieving excess returns. The study includes financial and statistical analysis to gain a deeper understanding of the results.
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Value Investing in Modern Times.pdf | 944.87 kB | Opinn | Heildartexti | Skoða/Opna |