Are "Good Companies" Good Investments?

At first glance, investing seems like it should be easy. Just buy shares in “good companies”, sit back, and profit. As easy as it sounds, that’s not how investing works, and the “good company is a good investment” fallacy is something that every investor needs to understand.

Referenced in this video:
Stocks of Admired Companies and Spurned Ones: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1540757
Glamour Brands and Glamour Stocks: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1571491
Investor Sentiment, Stock Characteristics, and Returns: https://jpm.pm-research.com/content/37/3/54
Contrarian Investment, Extrapolation, and Risk: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=227016
Valuation Bias and Limits to Nudges: https://jpm.pm-research.com/content/45/5/112
Conditional Skewness in Asset Pricing Tests: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://faculty.fuqua.duke.edu/~charvey/Research/Published_Papers/P56_Conditional_skewness_in.pdf
------------------
Follow Ben Felix on
- Twitter: https://twitter.com/benjaminwfelix

Visit Rational Reminder: www.https://rationalreminder.ca/

Follow the Rational Reminder on:
- Twitter: https://www.twitter.com/RationalRemind

Visit PWL Capital: https://www.pwlcapital.com/teams/passmore-felix/

Follow PWL Capital on:
- Twitter: https://twitter.com/PWLCapital
- Facebook: https://www.facebook.com/PWLCapital
- LinkedIn: https://www.linkedin.com/company/pwl-capital/

You can find the Rational Reminder podcast on
Google Podcasts:
https://www.google.com/podcasts?feed=aHR0cHM6Ly9yYXRpb25hbHJlbWluZGVyLmxpYnN5bi5jb20vcnNz
Apple Podcasts:
https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2
Spotify Podcasts:
https://open.spotify.com/show/6RHWTH9iW7hdnA7eAg7ukO?si=hjZNfLKuSjSeWX38GPqhVA
------------------