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How Alpha Hides in GAAP Accounting: Return on Equity

CFA Institute

You can find significant alpha in the mechanics that drive GAAP accounting.

GAAP 52
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Refreshing Revenue, the Cash Conversion Cycle, and Free Cash Flow

CFA Institute

GAAP sometimes misrepresents business reality. We can use that fact to generate some alpha.

GAAP 52
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The End of Accounting? Sustaining Financial Reporting

CFA Institute

The explanatory power of the financial information reported to investors for market valuation has plummeted in recent decades.

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Counting the Cost of Capital and Seeding Network-Based Accounting

CFA Institute

Cost of capital is a tenuous concept. Charlie Munger amusingly calls it a “perfectly amazing mental malfunction.”.

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Don’t Overlook Accounting Comparability

CFA Institute

Low accounting comparability can be costly for both firms and managers.