Worldwide Sites:   United States   |    Canada   |    South Africa
Validea: Value, Growth, Dividend Stocks    Stock Research - Free Trial   
Home  |   Validea Pro  |   Model Portfolios  |   Rating Changes  |   Blog  |   Hot List  |   Money Management
 Enter Ticker:
 Symbol Lookup
 Free Research
  Rating Changes
  Articles
  Blog
  Videos
  Year End Reports
 Free Weekly Email
Enter Email Address:
 Stock Ideas
  Hot List
  Model Portfolios
  Guru Screener
  Adv. Guru Screener
  Top Industries
 Stock Analysis
  Guru Analysis
  Stock Tracker
  My Portfolio
 Validea Professional
  Trade Alerts
  Pro Portfolios
  Stock Reports
 About Us
  Introduction
  Help
  About John Reese
  Guru Investor Book
  Press Room
 Featured Gurus
  Warren Buffett
  Benjamin Graham
  Peter Lynch
  Joel Greenblatt
  Martin Zweig
  David Dreman
  John Neff
  Kenneth Fisher
  Joseph Piotroski
  Motley Fool
  J. O'Shaughnessy
 Gurus by Style
  Value Stocks
  Growth Stocks
  Dividend Stocks
  Growth/Value Stocks
 Customer Service
  Subscribe
  Contact Us
  Login
 
Back to Previous Page  |  See All Guru Profiles

Joseph Piotroski  |  Book/Market Investor                                    Last Update: 7/23/2014


Joseph Piotroski Profile: Piotroski isn't your typical Wall Street big shot. In fact, he's not even a professional investor. He's a good old numbers-crunching accountant and college professor. But in 2000, shortly after he started teaching at the University of Chicago's Graduate School of Business, Piotroski published a groundbreaking paper in the Journal of Accounting Research entitled "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers". In it, Piotroski laid out an accounting-based stock-selection/shorting method that produced a 23 percent average annual back-tested return from 1976 through 1996 -- more than double the S&P 500's gain during that time. Piotroski's findings were reported in major financial publications like SmartMoney. Today, he teaches accounting at Stanford University's Graduate School of Business.

Joseph Piotroski Investment Strategy: Piotroski's methodology starts by narrowing stock choices to those trading in the top 20 percent of the market based on their book/market ratios (or, conversely, the bottom 20 percent of the market based on price/book ratios). He found that just buying low price/book stocks does not produce excess returns over the long term, because many low price/book companies are trading at a discount because they deserve to -- they're dogs with poor prospects. When he applied a series of additional tests of financial strength to these low price/book stocks, however, Piotroski was able to separate the dogs from the good prospects. Among the variables he examined: return on assets, current ratio, cash flow from operations, change in gross margin, and change in asset turnover. The strategy usually finds smaller companies whose stocks are flying under Wall Street's radar.

Research Paper Used for Joseph Piotroski Strategy: Value Investing: The Use of Historical Financial Statement Information to Separate Winners From Losers

Joseph Piotroski Model Portfolio Performance:
Since Inception: 71.01%
S&P 500: 72.13%
Full Performance Details

Stocks Passing Joseph Piotroski Strategy: 10 Stock Model Portfolio  |  20 Stock Model Portfolio  |  All Stocks Passing Methodology

Recent Upgrades and Downgrades:
Upgrades - UNIVEST CORP. OF PA  |  
Downgrades - CHINA AUTOMOTIVE SYSTEMS, INC.  |  
 
Back to Previous Page  |  See All Guru Profiles

 
Disclaimer |  Privacy Statement |  Contact Us |  About Us Fundamental data provided by Reuters

The names of individuals (i.e., the 'gurus') appearing in this report are for identification purposes of his methodology only, as derived by Validea.com from published sources, and are not intended to suggest or imply any affiliation with or endorsement or even agreement with this report personally by such gurus, or any knowledge or approval by such persons of the content of this report. All trademarks, service marks and tradenames appearing in this report are the property of their respective owners, and are likewise used for identification purposes only.

Validea is not registered as a securities broker-dealer or investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Validea is not responsible for trades executed by users of this site based on the information included herein. The information presented on this website does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information on this website is generic by nature and is not personalized to the specific situation of any individual. The user therefore bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional prior to making any investment decisions.

Performance results are based on model portfolios and do not reflect actual trading. Returns for both the model portfolios and the comparable benchmarkss do not include dividends. Actual performance will vary based on a variety of factors, including market conditions and trading costs. Past performance is not necessarily indicative of future results. Individual stocks mentioned throughout this web site may be holdings in the managed portfolios of Validea Capital Management, a separate asset management firm founded by Validea.com founder John Reese. Validea Capital Management, which is a separate legal entity and an SEC registered investment advisory firm, uses, in part, the strategies on the web site to select stocks for its clients.