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An Underappreciated Investing Tip: Check the Trademark Filings

A new study suggests that companies with relatively high trademark filings earn higher future profits

Trademark filings can serve as valuable indicators for investors, according to a new study. When comparing companies based on how many trademarks they register in a year—relative to their total assets—it is the shares of the companies that register more trademarks that do better the next year, outperforming shares of companies that register fewer, according to the study, which was recently published in Management Science.

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