Summary Use of model/screens can be helpful but have both advantages and disadvantages. Some of the disadvantages are: incorrect data, value traps, falling knives, high concentrations, etc. An important but ignored problem is that of incorrect data. Even Bloomberg gets it wrong! Examples from author's personal experiences highlight the issues investors should keep … [Read more...]
Stock Screens
Articles and posts are Stock Screens and outputs can be found here. Feel free to use the output to find potential investment opportunities!
O’Shaughnessy’s Value Composite Model
Last month, I did a review of O'Shaughnessy investment classic "What Works on Wall Street". It’s only fitting that this month I present one of O'Shaughnessy’s multi-factor models. This can easy be used as a starting point to find a potential investment. After running the model, an investor can do traditional bottoms-up analysis to pick the best opportunities. Or even apply … [Read more...]
Use O’Shaughnessy’s Screen To Find Value
Summary O'Shaughnessy's book "What Works on Wall Street" backtests single and multi-factor models. Rather than using a single factor (eg. P/E), you can improve performance by using O'Shaughnessy's composite model. This is an efficient way for an investor to generate investment ideas. An investor can overlay an additional model as a further filter such as Piotroski's … [Read more...]
A brief presentation of the Piotroski F-Score
In this article, I will briefly present the Piotroski F-Score and show the output from screening the Russell 3000. Joseph Piotroski received a B.S. in accounting from my alma mater, the University of Illinois in 1989. He worked as a senior tax associate at the firm Coopers & Lybrand before receiving an MBA from Indiana University in 1994, and a Ph.D. in accounting from … [Read more...]
What Works On Wall Street
I’ve decided to begin this new ‘Review’ section with a review of the book that inspired me and was the trigger or turning point to begin forming my strategy. This book is non-other than “What Works on Wall Street” by James O’Shaughnessy. If you have any doubt that value investing doesn't work then I guarantee you that this book will change your mind. The beauty of the book … [Read more...]
