In a recent article for Nasdaq, Validea CEO John Reese shares insights on quantitative investing and outlines the approach of Stanford University accounting professor Joesph Piotroski (a market guru that inspired one of the stock screening models Reese created for Validea). Piotroski, writes Reese, was a trailblazer in the investment approach, turning heads on Wall Street in 2000 with his research on unpopular companies with high book-market ratios (defined as total assets minus total liabilities divided by market capitalization). Reese offers an explanation of Piotroski’s approach and the metrics he used, as well as an overview of the Validea portfolio […]
The concept of quantitative investing, while gaining a lot of limelight these days, is not a new concept, writes Validea CEO John Reese in a recent Nasdaq article. Reese offers a profile of investing guru Joesph Piotroski, who authored a paper on the subject in 2000 which, writes Reese, “took Wall Street by surprise.” Reese describes Piotroski’s philosophy which focused on the book-market value of stocks as well as other metrics that enabled him to differentiate those companies whose share prices were low due to underlying financial distress from those that represented good investment opportunities. Using stock screening models Reese created […]
This week, we bring you the Stock Screen of the week from Validea. On Validea.com, you can screen for stocks using the site’s Guru Stock Screener, which scores stocks based on the fundamental stock selection criteria of legendary investors. The firm’s models are based on investing legends such as Warren Buffett, Peter Lynch, Benjamin Graham, Kenneth Fisher, Martin Zweig, David Dreman, Joel Greenblatt and others. This week’s screen is based on Validea’s Joseph Piotroski-based strategy, which looks for stocks trading with a strong book/market ratio and high return on assets. The model’s criteria are listed below. Book/Market Ratio Return on […]
Not all investment gurus are famous Wall Street fund managers or outspoken activist investors. That’s what Validea CEO John Reese says in his latest article for Seeking Alpha, in which he looks at the strategy of Joseph Piotroski, a college accounting professor whose work has had a big impact on the investing world.
Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the Joseph Piotroski-inspired strategy. Below is an excerpt from the newsletter, along with several top-scoring stock ideas from the Piotroski-based investment strategy.