(Off-Topic)
It would be pretty fun, but I really don't think I'm going to have enough time to do anything to follow up on that article...
A friend and I used to put out a newsletter for an investment analysis club we were a part of. My friend recently went back and looked at our FIRST Top 10 list (April '93), and found that if we had just broken up our portfolios into 10 equal parts, and invested in those 10 stocks (the list included CSCO, DELL, EMC, and others), and held since then, we would have 7 times our original investment (!).
Past results don't guarantee future performance, but.... we are reactivating our club, and our list, and our little newsletter... and that's gonna eat up my time during the next few weeks.
The method behind the list is simple, by the way... using Value Line data, we perform regression analysis on quarterly sales and earnings data, and find the stocks that are not only growing quickly, but are VERY predictable (r-square factors of .95 or higher, for all you familiar with least-squares linear regression).
Boring stuff to many, I'm sure... after all, only Value Line stocks are eligible for the list. However, the prospect of making 7 my investment in 5 years is very appealing... and I should be able to do EVEN BETTER than a buy-and-hold strategy, with a few TA and money management rules thrown in...
Loren |
