We just completed backtests on our Piotroski price-to-book screener using our proprietary backtesting tool. (On Europe) We also loaded the portfolio into profitmapper so you can follow the charts day-to-day. The results are impressive. Between June 1999 and now, profitmapper shows a return of 525%! These results are even more astonishing if you compare this to the S&P600 Europe incl net dividends, which lost 15% during this period.
What's the theory behind this screener?
Many scientific studies confirm that buying a portfolio of low price-book companies will beat the market over time...[more]
I sometimes wonder whether some financial newspapers are really adept at explaining what's really going on in the world. For everyday market updates, journalists are trying hard to second guess why the stock markets go up or down. If you read their newspapers on the web it's not uncommon for a story to be updated in a very short time: Agfa-Gevaert posted fantastic results.. 15 minutes later: Agfa- Gevaert disappoints with lower than expected earnings...[more]
One of the remains of the Graham-Newman era (except Warren Buffet himself ) is Tweedy, Browne Company LLC.
Founded in 1920, Buffets favorites’ stockbroker, was located at 52 Wall Street, in the same building as Ben Graham had once worked. Even Walter Schloss was sub-renting some space in their tiny office and running his partnership from behind a battered desk in a small room.
They diversified to arbitrage, workouts, etc...[more]
First : What is short selling ?
Short selling is a way profit from falling prices. You can sells shares you don't actually own on the assumption that the price will fall, with the aim of buying them back later for less. But how can you sell something you don't own?
Simple: You can borrow them for a fee from long term investors such as pension funds, banks and insurers who lend the stocks that they have in portfolio. This helps to boost their own returns. The borrower then sells the borrowed stock, hoping to buy them back on the cheap to return it to the owner...[more]