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equity growth
We backtested the Compounding Equity Screen across 14 exchanges worldwide from 2000 to 2025. One exchange outperformed the S&P 500. Twelve underperformed. One was sharply negative. The results reveal why equity compounding works in some markets and fails in others.
equity growth
We backtested the Compounding Equity Screen on XETRA stocks from 2000 to 2025. 4.44% CAGR vs 7.83% for the S&P 500. Germany was the weakest of the five major markets tested, with only 8 of 25 years beating the benchmark. Here is why equity compounding struggles in the German market.
value investing
Eight of 15 exchanges beat the S&P 500 over 25 years using a Price-to-Tangible-Book strategy. The split isn't random. Tangible book works where physical and financial assets are the primary value driver: manufacturing, banking, energy, materials. It struggles where intangibles dominate: tech-heavy markets, pharma-heavy markets, conglomerate
backtests
Price-to-Tangible-Book strips goodwill and intangibles from the valuation, leaving only what a company physically owns. Backtested on US large-caps from 2000-2025, the strategy returned 10.03% CAGR versus 7.83% for SPY, with a down-capture ratio of just 10.71%.
value-investing
The P/TBV strategy on the London Stock Exchange returned 9.61% annualised over 25 years against SPY's 7.83%, with a maximum drawdown of only -31.25%. The lowest of any outperforming exchange we tested.
value investing
Swedish industrial companies, sorted by the ratio of market cap to tangible book value, returned 8.97% annually from 2000 to 2024, beating the S&P 500 by 1.14 percentage points. The strategy spent four years in cash at the start, which accidentally sidestepped the dot-com crash, and
backtests
India's listed companies are built on physical capital: steel, cement, chemicals, engineering. A P/TBV screen on BSE/NSE large-caps returned 15.92% CAGR over 25 years versus 7.83% for SPY, with a down-capture of -9.57%, meaning the strategy gained when SPY fell.
value-investing
The P/TBV strategy on Germany's XETRA returned 8.83% annualised over 25 years with a down capture of -22.69%. When SPY falls, these stocks don't just hold — they rise. In 2007 SPY dropped 13.71% while the portfolio gained 1.19%.
value-investing
The P/TBV strategy on China's Shenzhen and Shanghai exchanges returned 9.71% annualised over 25 years with a beta of 0.113 and a down capture of -67.38%. In 2008, SPY lost 26%. This portfolio gained 46%.
value investing
Over 25 years on the Toronto Stock Exchange, a Price-to-Tangible-Book strategy returned 8.61% annually against SPY's 7.83%, a margin of 0.77 percentage points. That's the narrowest outperformance of any market we publish a dedicated blog for. Canada works, barely, and understanding why it
backtests
We ran the Industry Leader strategy on 13 exchanges. Only India outperforms SPY. Most markets trail by 1-5% annually. Here's what the data shows about where revenue leadership actually matters.
backtests
We picked the top 3 companies by revenue in every US industry showing positive growth, rebalanced annually for 24 years. The result: 8.65% CAGR vs 8.89% SPY. The honest answer on whether revenue leaders beat the market.