Podcast: Sweet Briar Junior Beats S&P 500 Using Rules-Based Investing Strategies
As you know, for the past several months, students in Professor Tom Scott's "Principles of Investing" class at Sweet Briar College have been testing the application of rules-based investing on the stock market.
Junior Jenny Young is one of those students. She read The Naked Portfolio Manager last fall and used the principles to develop her own criteria for selecting securities. So far, her three models have outstripped the S&P 500 by a wide margin. I interviewed her recently for a podcast, which you can download below.
"Every time we get our results back for the month, I'm completely shocked that I was able to create a portfolio that's done so much better than the S&P 500. The only real thing that I knew was reading your book and going on the stockscreener123.com website and just trying out some rules," Jenny says.
In the interview, Jenny details the variables used in her models, such as improved dividend growth, P/E and P/S ratios, market cap and improved sales growth. She also opted to use another "creative" rule "that no one had ever really done before," yet which produced surprisingly good results for her.
For a complete list of all of the stocks that were selected by Jenny's models as well as the monthly performance, plus the selections of the other Sweet Briar students, go to Professor Scott's website.
CLICK HERE to listen to my complete podcast interview with Jenny.
Junior Jenny Young is one of those students. She read The Naked Portfolio Manager last fall and used the principles to develop her own criteria for selecting securities. So far, her three models have outstripped the S&P 500 by a wide margin. I interviewed her recently for a podcast, which you can download below.
"Every time we get our results back for the month, I'm completely shocked that I was able to create a portfolio that's done so much better than the S&P 500. The only real thing that I knew was reading your book and going on the stockscreener123.com website and just trying out some rules," Jenny says.
In the interview, Jenny details the variables used in her models, such as improved dividend growth, P/E and P/S ratios, market cap and improved sales growth. She also opted to use another "creative" rule "that no one had ever really done before," yet which produced surprisingly good results for her.
For a complete list of all of the stocks that were selected by Jenny's models as well as the monthly performance, plus the selections of the other Sweet Briar students, go to Professor Scott's website.
CLICK HERE to listen to my complete podcast interview with Jenny.
2 Comments:
This is rally neat. Changes ones mind about how you might use, or not use, a broker.
Hal,
Thanks for your comment. I agree with you that the reasons to use a financial advisor are changing. Naked strategies are an effective methods of making decisions. Empirical models can be used to select securities more efficiently than traditional methods and with so many mutual funds underperforming the market averages, it is hard to argue against switching to a rules based method.
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