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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: mungofitch 🐝🐝🐝 GOLD
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Number: of 6131 
Subject: Re: Max CAGR for 3 step Screens
Date: 02/09/24 8:32 AM
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Jim, Could you list current stocks in your screen?

I think they would be these
HRB SRPT BKNG NSP RCL CNK IBKR ORCL CCL MELI VVV MSI UAL DVAX ENPH STX SE DK LNTH CELH

[See recent post on garbage data from VL this week on prices...with luck it doesn't affect these specific fields]

However, arguably the screen definition has a bug: it really should start with (yes) another starting step to require the ROE and cash fields both to be positive before doing the math.
Otherwise you could pick a firm with a negative equity and negative cash, but the quotient is positive.
(with those two both positive, the sales growth figures will take care of themselves in the sort)

This makes a difference at rank 22 this week (which has negative equity and negative sales growth) so at least it doesn't affect the tickers above.
In the backtest there is a difference in the top 20 picks in 80% of months by adding the positive field check, but the CAGR difference is within statistical error at 0.64%. Unsurprisingly the win rate goes up a bit. Who wants to buy the "wrong" stock?

Jim
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This community has written 6,115 posts about Mechanical Investing. The article-length ones it recommended most:
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