Edward Chancellor - Capital account : a money manager’s reports from a turbulent decade (1993-2002)

This book made available by the Internet Archive.

Capital Account: an account of the capital subscribed to any trading concern, and of the manner in which it has been expended. In joint stock companies, it is of great importance that the Capital Account should be kept distinct from the Revenue Account in order that a proper check may be kept upon the proceedings of Directors and Committees.

Richard Bithell,M Counting-House Dictionary containing an explanation of the technical terms used by merchants and bankers in the Money Market and on

the Stock Exchange, 1882.

Digitized by the Internet Archive in 2017 with funding from Kahle/Austin Foundation

https://archive.org/details/capitalaccountOOedwa

Charts

1 The capital cycle. 9

2 Tobins q and US investment. 30

3 The distribution of investment returns. 33

4 The momentum cycle. 37

5 Investor overreaction and the capital cycle. 38

6 Management reinvestment matrix. 60

7 Changes in real earnings of the 20 largest growth stocks

in the S&P 500. 92

8 A decision tree for growth stocks. 93

9 Market dynamics: beating the fade. 96

10 The share of earnings and capitalisation of technology stocks

in the S&P 500. 105

11 The market value of the 20 largest US and European

companies as a percentage of total market capitalisation. 119

12 Deregulating industry life cycle. 131

13 S&P 500 trailing P/E ratio. 187

14 S&P 400 profit margins. 187

15 Stock repurchases financed with debt rather than earnings. 191

16 The decline of long-term investing: the average turnover

of US equity mutual funds. 196

17 Terra Lycos share price (euros). 238

18 Nokia share price (euros). 248

19 Deutsche Telekom share price (euros). 254

20 Vodafone share price (pence). 258

XI

Tables

1 Annual share price performance of growth and value

shares (% change). 88

2 Probability of remaining a growth stock. 92

3 Profitability and growth: European mega-caps versus

mid-caps. 120

4 Perils of index investing - MSCI Europe after peak. 124

5 The characteristics of easy and difficult turnarounds. 200

6 Recent investment analyst research recommendations on

Nokia (at 50 share price). 245

7 Deutsche Telekom: sum-of-the-parts valuation at 63. 252

8 Forecast comparisons for Vodafone. 257

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