Read Chapter 13 in the Dhandho Investor
Prior to completing this assignment, read Chapter 13 in the Dhandho Investor, Lawrence Cunningham’s Initiative on Quality Shareholders Highlights Download Initiative on Quality Shareholders Highlights, and Jason Gordon’s Total Shareholder Return – Explained
Cunningham (2020) “compared two portfolios over the study period (2014–2018): one comprised of the 25 companies attracting the highest density of QSs [Quality Shareholders] and the other of the 25 attracting the lowest density of QS. The high QS density portfolio outperformed the low QS density portfolio in each of those five years” based on cumulative return data for the five-year period (p. 33).
Choose one company from the list of quality shareholder (QS) attractors in the article.
In your paper,
Explain eight successful corporate policies or practices that your chosen company uses as a QS attractor.
Cite examples from your chosen company using the Introduction to APA. guidelines.
Compare a company’s capital allocation strategy to the Dhandho principle of low-risk, high-return approach.
Cite examples from your chosen company using APA Style
Calculate the cumulative shareholder return for your chosen company for the period 2014–2018.
Compare the cumulative return you calculated for your chosen company to the cumulative return on two major stock indices for the period 2014–2018.
Compare the evidence of the investment performance exhibited by quality shareholders to other active management investment strategies.
Provide two additional sources in your comparison.
The Quality Shareholders paper,
Must be three to four double-spaced pages in length (not including title and references pages).
Must include a separate title page with the following:
Title of paper in bold font
Space should appear between the title and the rest of the information on the title page.
Student’s name
Name of institution
Course name and number
Instructor’s name
Due date
Must include an introduction and conclusion paragraph. Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your paper.
Must use at least two scholarly, peer-reviewed, or credible sources other than Dhandho and the required resources that support this assignment.
Reference
Pabrai, M. (2007). The Dhandho investor: The low-risk value method to high returns. Wiley.
Chapter 13: Dhandho 402: Invest in Low-Risk, High-Uncertainty Businesses
Cunningham, L. A. (2020). Initiative on quality shareholders highlights Download Initiative on quality shareholders highlights[Research paper]. Center for Law, Economics and Finance Occasional Paper Series (2020), George Washington University Law School, 1–33.
Gordon, J. (2021, September 18). Total shareholder return – explained. The Business Professor. https://thebusinessprofessor.com/en_US/accounting-taxation-and-reporting-managerial-amp-financial-accounting-amp-reporting/total-shareholder-return-definition
Answer preview to Read Chapter 13 in the Dhandho Investor
APA
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