Paul,
I read and enjoyed the Glassman article also. But rather than focusing on the individual stocks mentioned, I'm led to wonder whether any of us really add value to these screens. My basic assumption is that most VIs start with a mechanical screen of some kind (one that likely resembles one or more of the AAII screens). We all intuitively understand that, on average, cheaper is better whether PS, PE, PB, PEG, etc. However, then we take the list and try to cherry-pick it. O'shaugnessy specifically warned against trying to do that with his screens. Try as I might, I've never been able to force myself to buy an entire screen intact (I came close once). But once we get past the hard numbers, am I (are we) adding value when we cherry-pick? I'm sure the gifted few can do it. But can the rest of us?
I guess at least, when we use these screens, we're cherry picking in a cherry tree.
steve |
