Post #1700 by rayvt on the Mechanical Investing board

Investment Strategies / Mechanical Investing ❤

Unthreaded | Threaded | Whole Thread (20)

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 11

If you want to do a multi-factor, why not try one Jim has mentioned many times.

"Using a broad market index (like S&P500 or VL1500 or Russell 1000)
Or using the Value Line ~1500 stocks with any Timeliness.
Take only the 90% of the stocks closest to their 52-week high.
(Drop the lowest 10%)

Take the top 100 by ROE ...
and those with earnings >0 and book value is < 0.

then of those, top 25 by 5 Yr sales Growth.
Re-evaluate and/or rebalance every 1 or 2 or 3 or 6 months.
Optional tweak, 15 HTD 25 or 25 HTD 30."

I've been running a 1 month screen of this since January 2021.
Total return 52.2% vs 40.6% for SPY

Average turnover is 4-5 stocks per month. I don't rebalance, just re-evaluate.

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (20)

Prev | Next

Announcements

Mechanical Investing FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.