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Investment Strategies / Mechanical Investing
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Author: lizgdal 🐝  😊 😞
Number: of 4357 
Subject: Re: BMW Method Backtest?
Date: 08/29/2025 7:04 PM
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I couldn't find any posted backtests of the BMW method. Requiring 20 years of stock price history limits many backtesting tools. There were a few posts discussing screens that picked BMW-type stocks (e.g. Benchmark Investing). The French Fama Factor LT-Rev has a 5 year lookback, but has negative CAGR after inflation.

https://www.portfoliovisualizer.com/factor-statist...

=== links ===

Long-Term Reversal Factor (LT Rev)
We use six value-weight portfolios formed on size and prior (13-60) returns to construct LT_Rev.
https://mba.tuck.dartmouth.edu/pages/faculty/ken.f...

"It is based on reviewing the exponential growth of a company's stock price from some point in the past (usually 20 – 30 years) and comparing today's price to ranges of growth rates (CAGR) that have defined that company. A stock that is at or below its lowest historical CAGR rate is considered a good buy."
https://web.archive.org/web/20100827103705/http://...

https://yorickm.com/Message.php?pid=25145547
https://yorickm.com/Message.php?pid=23043947
https://yorickm.com/Message.php?pid=21058166

https://gtr1.net/2013/?~BenchmarkInvesting_2004072...
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