Quantifying the intangibles

I wrote this thing back in 2019 about how all of the most important factors for investors during the last decade have been non-quantifiable things like brand equity and network effects. It’s squishy stuff, but it turned out to have mattered a lot more than the traditional factors in terms of stock price performance.

Well, it turns out a lot of this squishy stuff can be quantified. Kai Wu launched Sparkline Capital to do exactly that. He already has one launched ETF based on his factors. You can see some of his awesome PDFs and charts over at the Sparkline site. It was awesome having him on The Compound and Friends podcast this week. The full video is below, enjoy!

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