Let's start with the name "Value Line." It refers to a brand name, as well as a conceptual framework. Value Line (the company) is a financial research firm, first founded in 1931 by Arnold Bernhard. Its highest profile product is a newsletter called The Value Line Investment Survey.
Now onto "value line" as an idea. Bernhard conceived the idea of superimposing a line over price charts to normalize the value of different companies. The line was derived from a multiple of cash flow. It was meant to help better compare the value of various stocks.
The Value Line Composite Index provides a way to chart the stocks highlighted in the company's Value Line Investment Survey. The index takes those stocks (minus closed-end funds) and combines them into an index. The performance of the index can then be compared to overall market performance. It's basically a way to prove that the investment survey (and the whole "value line" concept) has merit.
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Finance: What is a Country Basket (Index...30 Views
Finance, a la shmoop. What is a country basket index fund?
All right we're picking daisies, marigolds, lilies so uh how do we [Pictures of flowers]
rephrase in Italian? Like, we want to fill a portfolio basket with just stocks [Pouring a glass of red wine]
representing the overall financial health of Italy. Is Italy healthy? While
they smoke a lot they drink a lot of wine they eat a bunch of pasta but there
always seems to be a woman from some small village who's celebrating her [Old woman at a birthday party]
117th birthday over there. Well a country basket is just an index fund of
stocks representing a country. Like we're doing Korea... South we're gonna have
in that basket dunno some Samsung, a load of Daewoo, a hunk of Hyundai and some [Company stocks being added to the basket]
nice barbecue on the side. That'd be our Korean country basket and it's a good
basket to fill if you're just bullish on a country but not really sure which
flower on which to place your bets. It's like instead of trying to decide between [The stocks in the basket turn into flowers]
roulette or poker or slots... Well you just buy stock in Las Vegas
Sands you know you bet on the entire casino, and bueno Fortuna you know good [Someone checking their cards in a casino]
luck there pal, doesn't the house always win? Yeah so why do people keep going there?...
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