Hello Duke,
Thanks for your thoughts.
Reviewing this site is one of my favorite things to do on Saturday.
Couldn't agree more with your comments relative to favoring an active approach when buying. You referenced Sectors/RS/Chart and FA research. Regarding the FA, I believe O'Shaughnessy has provided the necessary criteria for the basic FA. From his list of stocks I find myself reviewing an additional item or two (acid test, debt to equity and cash flow after capital expenditures) but, that's it.
Your comment that "There has got to be a simple approach to beat the S&P" is a done deal. O'Shsughnessy's been there, done that and got the bumper sticker and hat to prove it. I know of no other researcher who has done such an extensive empirically backed job of proving what beats the S&P over an extended time.
Take a look at osfunds.com and osfunds.com
And, specifically the returns of the growth and value funds compared to the S&P. I'm not pumping his funds, just the returns from a group of stocks that anyone can have using a simple search engine. If there is a better mouse trap, I'll buy it. Using O'Shaughnessy's criteria and P&F to construct a 10 to 12 stock portfolio has got to be a killer.
Speaking of which. Per my last post, I'm considering starting a P&F thread that will consist entirely of O'Shaughnessy criteria stocks. Then, we'll discuss pullbacks, entry, stops, price objectives, etc.
Anyone who has an interest drop me a private message. If I get enough interest, we'll give it a try.
Have a great weekend Duke.
Eric |
