IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v21y1991i2p8-21.html
   My bibliography  Save this article

A Buy-Low, Sell-High Investment Methodology: The Case of Bulk Shipping

Author

Listed:
  • Henry S. Marcus

    (Department of Ocean Engineering, Massachusetts Institute of Technology, Room 5-207, Cambridge, Massachusetts 02139)

  • Maurice A. Glucksman

    (Pugh-Roberts Associates, Inc., 3 Worcester Street, Oxford, OX12BX, England)

  • Babis O. Ziogas

    (Bulk Ocean Services (USA) Corporation, 675 Third Avenue, 19th Floor, New York, New York 10017)

  • Karl L. Meyer

    (Universal American Ventures Corporation, 60 Arch Street, Greenwich, Connecticut 06830)

Abstract

Investment success in a cyclical market, such as the international bulk shipping market, can be dramatically enhanced by a cost-based buy-low, sell-high investment strategy. We developed an estimator of relative price level for a general asset using net present value techniques and publicly available information on costs and revenues. The estimator compares market price with a cost-based nominal price and thus identifies relative highs and lows in a market. As a test, we used the estimator on historical data to simulate how investment decisions could have been made in the bulk shipping market. Investment strategies using the estimator to time acquisitions and sales perform significantly better than a “blind” investment strategy (where ships are acquired and sold at fixed time intervals).

Suggested Citation

  • Henry S. Marcus & Maurice A. Glucksman & Babis O. Ziogas & Karl L. Meyer, 1991. "A Buy-Low, Sell-High Investment Methodology: The Case of Bulk Shipping," Interfaces, INFORMS, vol. 21(2), pages 8-21, April.
    • Handle: RePEc:inm:orinte:v:21:y:1991:i:2:p:8-21
    DOI: 10.1287/inte.21.2.8
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/inte.21.2.8
    Download Restriction: no
    File URL: https://libkey.io/10.1287/inte.21.2.8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pantuso, Giovanni & Fagerholt, Kjetil & Hvattum, Lars Magnus, 2014. "A survey on maritime fleet size and mix problems," European Journal of Operational Research, Elsevier, vol. 235(2), pages 341-349.
    2. Gkochari, Christiana C., 2015. "Optimal investment timing in the dry bulk shipping sector," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 79(C), pages 102-109.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:21:y:1991:i:2:p:8-21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.