value investing
We screened every US stock for discount to intrinsic value using a Gordon Growth Model and backtested from 2000 to 2025. The strategy returned 8.59% CAGR vs 7.33% for the S&P 500, turning $10,000 into $78,519 vs $58,591. The edge is real but
value investing
Australia tested the DCF discount strategy with a local currency market cap threshold. Over 25 years, the strategy returned 6.08% CAGR with a -62.36% max drawdown. The Sharpe ratio of 0.108 and 1 cash period reflect a concentrated portfolio averaging 20.3 stocks when invested. Against the
value investing
Brazil produced the highest CAGR of any market we tested for the DCF Discount strategy. Over 25 years, a portfolio of SAO-listed stocks trading below computed intrinsic value returned 18.05% CAGR, turning $10,000 into $716,099. The Bovespa returned 8.58% over the same period. That's
value investing
Greenblatt's Magic Formula returned 24.25% annually on Indian stocks (BSE + NSE combined) from 2000 to 2025. That's 13.1% annual alpha over the Sensex's 11.12% CAGR. $10,000 became $2.67M vs $147K for the benchmark. Both returns are in Indian Rupees,
value investing
We backtested Greenblatt's Magic Formula on the Jakarta Stock Exchange (JKT) from 2000 to 2025, using a market cap threshold of IDR 5T (~$310M USD) to target liquid, investable companies. The strategy returned 7.15% annually, slightly below the S&P 500's 8.02% CAGR
value investing
We backtested Greenblatt's Magic Formula on all US exchanges (NYSE, NASDAQ, AMEX) from 2000 to 2025, using next-day execution to avoid same-bar entry bias. The strategy returned 9.53% annually vs 8.02% for the S&P 500. $10,000 became $104,210 vs $72,830 for
value investing
The Magic Formula returned 19.67% annually on B3-listed Brazilian stocks from 2000 to 2025. $10,000 became $1,018,100. The Bovespa index returned 8.95% over the same period. That's 10.72% annual excess return, measured in the same currency (BRL). The strategy was invested in
value investing
The Magic Formula adds value more broadly than we first thought. We ran Greenblatt's two-factor screen on 18 global exchanges from 2000 to 2025. With local benchmarks (Sensex for India, FTSE for the UK, DAX for Germany, KOSPI for Korea) instead of comparing everything against the S&
dividend investing
Buy the 10 highest-yielding Dow stocks every January. Hold for a year. Repeat. We backtested 25 years of data from 2000 to 2025. Dogs returned 10.2% annually vs 7.6% for the S&P 500, turning $10,000 into $113,000 vs $63,000. But the real story
value investing
Low P/E screening on Indian exchanges produced strong returns. BSE returned 16.9% annually. NSE returned 13.7%. Both beat the Sensex's 11.1%. BSE's excess return of +5.8% over the local benchmark is meaningful. NSE's +2.6% is modest. Max drawdowns
value investing
Low P/E screening on Hong Kong's HKSE returned 14.4% annually from 2000 to 2025. That's +12.6 percentage points above the Hang Seng Index, which managed just 1.8% CAGR over the same period. The strategy's Sharpe of 0.296 towers over
value investing
Low P/E value investing has outperformed historically. Academic research going back to the 1970s documents the premium. But most investors use P/E wrong, and end up buying value traps instead of bargains. Here's how to screen for undervalued stocks while avoiding the traps. Contents 1. Method