Invest Like Wall Street Legends

Our Factor-Based Models Have Substantially Outperformed the Market Since 2003

Guru Based on Annual
Motley Fool 12.4%
Benjamin Graham 11.4%
Martin Zweig 11.1%
Peter Lynch 10.4%
Kenneth Fisher 10.0%
James P. O'Shaughnessy 8.2%
Warren Buffett 7.3%
Joseph Piotroski 6.4%
John Neff 5.6%
David Dreman 4.6%
Joel Greenblatt 5.4%

Recent Articles


Factor Timing: Sin Less Than a Little

By Jack Forehand (@practicalquant)

There is perhaps no issue that is the subject of more debate in the factor investing community than factor timing. We are all trained to buy low and sell high, and it is tempting to conclude that we can do the same thing with factors. For example, if value stocks have struggled for a long period of time and they are cheap relative to their history, it makes intuitive sense to add exposure to them and to try to take advantage of mean reversion when they bounce back. It also makes sense in theory to reduce exposure to a factor after a long run of positive relative performance. As is the case with many things in investing, though, the actual implementation of that concept proves much more difficult in the real world than it seems in theory.


Learning from the Hierarchy of Investor Needs

By Justin Carbonneau (@jjcarbonneau)

The original "hierarchy of needs" model was developed by Abraham Maslow in 1943. Maslow proposed the hierarchy as a way to understand human motivation and later extended it to human curiosity. The hierarchy can be viewed as a pyramid with layers, which included things like “physiological,” “safety,” “belonging and love,” “esteem,” and “self-actualization”. Each part builds off the one below, and before one could move up the pyramid the existing layer would need to be understood and internalized.


The Benefits of Base Rates

By Jack Forehand (@practicalquant)

Wall Street prediction season is upon us. It is the time of year when all the major investment banks and market pundits will issue their 2019 market outlooks. They will tell you what they think will happen in the next year and will even by nice enough to give you exact price targets they think the S&P 500 will reach by year end. Unfortunately for all of us, those predictions won’t be worth that much.


When Hypothetical Becomes Real

By Jack Forehand (@practicalquant)

The day you begin to follow a new investment strategy is typically a day of optimism. You have done your research, you have looked at the historical results, you believe in the investment process, and you expect to see similar returns in the future to what the strategy has done in the past. You have even potentially looked at the ups and downs of the strategy and are prepared for the fact that the ride won’t be one that goes straight up. And then you invest your money and reality sets in.

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