No. of Recommendations: 6
Still, it's a good neighbourhood: ROE very high, or infinite due to positive-earnings-negative-book.
In the VL group, top 30% by ROE return about 3.4%/year better than the bottom 30% by ROE.*And* in the top rank of 5 year sales growth.
As far as
"filter out a few obvious duds", this brings to mind an entry in my quotes file:
"Discretion over buy-and-sell decisions in aggregate can turn a model that generates a market beating return into a sub-par return.
The challenge is not for most investors in coming up with a workable investment strategy, but in trying to implement that strategy on an ongoing basis. The problem arises that there is always a plausible reason NOT to do something our strategy is telling us to do. The smarter someone is the more plausible a story they can come up with telling them their system is incorrect.
IOW, follow the signals religiously!" -- http://abnormalreturns.com/the-folly-of-trying-to-...Reminds me painfully of when I sold TSLA (258.78) at 215.89 because it was clearly going to be a dud going forward.
Ditto AAPL (234.11) sold at 209.36 because they'd never be able to keep selling overpriced smartphones.
It's a lesson I (re)learn every few years.
