Patrick O'Shaughnessy is the CEO of O'Shaughnesssy Asset Management and the host of the popular Invest Like the Best podcast. In his book "Millennial Money: How Young Investors Can Build a Fortune", he outlined a simple, easy to follow investment strategy for younger investors that outperformed the market by a wide margin in his testing. Patrick is a CFA Charterholder and holds a B.A. in Philosophy from the University of Notre Dame.
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Since 2008, this portfolio has returned 396.3%, outperforming the market by 118.9% using its optimal monthly rebalancing period and 20 stock portfolio size.
Validea used the investment strategy outlined in the book Millennial Money written by Patrick O'Shaughnessy to create our Millennial Investor portfolio.
In investing, simple is often better. Many investment strategies get bogged down in complexity without the performance results to show for it. This strategy uses a simple set of five criteria that get at the heart of the factors that drive investment performance over time. It looks for firms with high shareholder yield (indicating that they are focused on providing value to the owners of their stock), high return on invested capital, inexpensive valuations (via enterprise value to free cash flow), operating cash flow that exceeds accounting earnings, and relative strength in the top 75% of the market.
Performance Disclaimer: Returns presented on Validea.com are model returns and do not represent actual trading. As a result, they do not incorporate any commissions or other trading costs or fees. Model portfolios with inception dates on or after 12/30/2005 include a combination of back tested and live model returns. The back-tested performance results shown are hypothetical and are not the result of real-time management of actual accounts. The back-testing of performance differs from actual account performance because the investment strategy may be adjusted at any time, for any reason and can continue to be changed until desired or better performance results are achieved. Back-tested returns are presented to provide general information regarding how the underlying strategy behind the portfolio performed in our historical testing. A back-tested strategy has the benefit of hindsight and the results do not reflect the impact that material economic or market factors may have had on advisor's decision-making if actual client assets were being managed using this approach.
Optimal portfolios presented on Validea.com represent the rebalancing period that has led to the best historical performance for each of our equity models. Each optimal portfolio was determined after the fact with performance information that was not available at portfolio inception. As a result, an investor could not have invested in the
optimal portfolio since its inception. Optimal portfolios are presented to allow investors to quickly determine the portfolio size and rebalancing period that has performed best for each of our models in our historical testing.
Both the model portfolio and benchmark returns presented for all equity portfolios on Validea.com are not inclusive of dividends. Returns for our ETF portfolios and trend following system, and the benchmarks they are compared to, are inclusive of dividends. The S&P 500 is presented as a benchmark because it is the most widely followed benchmark of the overall US market and is most often used by investors for return comparison purposes. As with any investment strategy, there is potential for profit as well as the possibility of loss and investors may incur a loss despite a past history of gains. Past performance does not guarantee future results. Results will vary with economic and market conditions.