quality investing
D/E < 0.5 + Piotroski F-Score >= 7 on the SIX Swiss Exchange produced the highest Sharpe ratio of any market tested (0.429), 8.14% CAGR, 69.27% down capture, and zero cash periods across 25 years.
quality investing
D/E < 0.5 + Piotroski F-Score >= 7 on the Stockholm exchange returned 8.97% CAGR vs 7.83% for SPY, with 106.29% up capture and 7 protective cash periods. A thin but effective universe of 22 stocks.
quality investing
D/E < 0.5 and Piotroski F-Score >= 7 on JPX stocks across 25 years. 6.00% CAGR vs 7.83% SPY. 112 avg qualifying stocks, 75.1% down capture. Abenomics drove +47.4% in 2012 and +38.9% in 2014. Japan's deflation era cost the strategy its 25-year edge.
value investing
We ran a low-debt quality screen on BSE and NSE stocks from 2000 to 2025. D/E below 0.5, Piotroski F-Score of 7 or higher, annual rebalance in July. The result was 14.05% CAGR in Indian Rupees, against a 7.83% SPY benchmark. That's +6.22%
quality investing
We screened all HKSE-listed stocks for D/E < 0.5 and Piotroski F-Score of 7 or higher, then held the portfolio annually from 2000 to 2025. The result: 3.67% CAGR vs 7.83% for SPY. The strategy trailed by 4.17% per year. Total return was 146.01%
quality investing
We screened XETRA-listed German equities for D/E < 0.5 and Piotroski F-Score >= 7 across 25 years. Result: 6.72% CAGR vs 7.83% for SPY. The 2001 Neue Markt collapse cost the strategy -33.6% in a single year. 0 cash periods, 48 avg stocks.
quality investing
D/E < 0.5 + Piotroski F-Score >= 7 on Chinese A-shares (SHH + SHZ), backtested 2000-2025. 5.28% CAGR vs 7.83% SPY. Two verified bubble events: +111.2% in 2006 and +83.8% in 2014. Down capture of 11.37% — the lowest in the global study. Volatility of 33.24% and max drawdown of -55.77%.
quality investing
D/E < 0.5 + Piotroski F-Score >= 7 across the TSX returned 9.16% CAGR vs 7.83% for SPY over 25 years — with a -13.01% down capture. When markets fell, this portfolio tended to rise.
equity growth
We ran the Compounding Equity Screen on all US exchanges from 2000 to 2025. 5.90% CAGR vs 7.83% for the S&P 500. The strategy underperforms by 1.93% annually. In 2023, it returned -5.07% while SPY gained 24.6%. Here is what the data shows and why it happens.
equity growth
We backtested the Compounding Equity Screen on London Stock Exchange stocks from 2000 to 2025. 10.02% CAGR vs 7.83% for the S&P 500, with only 4.7% down capture. During the 2008 financial crisis, UK equity compounders returned +4.4% while SPY fell 26%.
equity growth
We backtested the Compounding Equity Screen on BSE+NSE stocks from 2000 to 2025. 6.48% CAGR vs 7.83% for the S&P 500. The strategy underperforms slightly but shows 6.7% down capture — when the 2008 financial crisis hit, Indian equity compounders returned +2.09%.
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.