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To: Mark Marcellus who wrote (43178)7/5/2011 3:58:08 PM
From: Spekulatius  Respond to of 78715
 
I don't use fully mechanical approaches to investing. For example the MFS screen did contain quite a few Chinese RTO over the years. It is easy to make the MFS top 100 list if you fake the numbers. If enough RTO crowd out other bargains, it could become really expensive for someone following the "mechanical" approach.

There are other artifacts that make a stock show up in the MFS even though it may not be a bargain. I think that those folks preferring mechanical approaches claim that it takes the emotions out of the investment process. That's true, but it also takes out sound reasoning sometimes.