Video: Quants! The Theory Of Universal Value

by: Brian M. Nelson, CFA

Summary

President of Investment Research Brian Nelson defines the concept of universal value.

He shows how quantitative statistical methods are inextricably linked to those of fundamental, financial, and business-model related analysis.

Value does not exist in respective process vacuums! Value is universal. Find out why.

Hi folks,

This is the tenth episode of a series that I have started called "Off the Cuff," where I get in front of the camera and talk for about 10 minutes each episode. It's low-tech, I know - but it's "authen-tech." I like that. I'll do my best to incorporate feedback and questions going forward, so stay tuned. We have a number of the videos already filmed. We're now up to 14 content-packed videos!

In this episode (episode 10), I talk about one of the most important considerations in all of finance: the concept of universal value - or how quantitative statistical methods are inextricably linked to those of fundamental, financial, and business-model related analysis. I do my best to explain how value does not exist in respective process vacuums, but that it is universal. An understanding of the discounted cash-flow model is what ties quantitative analysis and fundamental analysis together - the discounted cash flow model derives the multiple that should be placed on earnings, for example, while the multiple observed in the market is a pricing metric.

Give these videos and the discussions time to get warmed up. They're not made to be fancy. I don't like bells and whistles. They're made to be conversational. I hope you enjoy this tenth episode and those that follow. Let me know what you think. Don't forget to comment. Thanks!

Disclaimer: This video and any content within are for information purposes only and should not be considered a solicitation to buy or sell any security. Valuentum and Brian Nelson are not responsible for any errors or omissions or for results obtained from the use of this video or any content and accept no liability for how readers may choose to utilize the content. Assumptions, opinions, and estimates are based on our judgment as of the date of the article and are subject to change without notice. There is substantial risk of loss associated with investing in any financial instrument. Valuentum Securities is a financial publisher.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.