Investment Strategy

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Thinking about position sizing? This can help

Have you ever wondered how much you should invest in each stock in your portfolio – also called position sizing? You can of course just say I want to diversify my portfolio over 15 to 30 companies, divide the amount you want to invest by that number and invest the [...]

By |May 20th, 2019|

The best investment strategy in Europe 2000 to 2014

What investment strategy would have given you the highest returns in Europe over the 13 year period from July 2000 to July 2014? In this article I summarised the master’s thesis of Andreas Hennes (completed at Goethe University Frankfurt am Main on 14 September 2015) where he set out to [...]

By |May 26th, 2017|

Your absolute best strategy in 2016

2016 was a rather boring investment year that turned out surprisingly profitable if you used the strategies that worked. I largely missed the best strategies boat as my portfolio was over 60% in cash throughout the year. In spite of that I was still able to earn a respectable 5%. [...]

By |February 20th, 2017|

How to implement the Magic Formula investment strategy

You have most likely already know about the Magic Formula investment strategy developed by Joel Greenblatt and described in his excellent book called The Little Book that Still Beats the Market. It is also the book that got me started with quantitative investing. Your step by step guide In this [...]

By |February 20th, 2017|

Quantitative value investing deserves your serious attention

 

 

Are you a classic value investor?

Do you get excited the lower the share price of an undervalued good company falls?

Do you love sifting through the 52-week low, lowest PE or highest dividend yield list?

Something I used to do
I'm also a hard-core value investor but this is not something I do any more as I found an even better way to generate market beating returns.

Lead me explain.

Started the worst way possible
If you are a long time reader of my newsletters you will know that I started investing in the worst possible way.

Because of this I made every possible mistake an investor can make.

I started using technical analysis and lost money. I then followed brokers recommendations (traded a lot) but never made any real money until I discovered value investing which I have been studying and practicing over more than the past 20 years.

A new way of looking at value investing
However last year my approach to investing changed substantially.

 

Your 7-Minute Guide to Making Better Investment Decisions

Investing, in its simplest form, is about finding investment ideas, analysing companies and making decisions. Your returns can thus increase by improving any one of the three activities. This article gives you ideas on how to make better investment decision. I started a few years ago and it has helped [...]