The Value Across Time Yearly uses our brand new Value Across Time Score in which companies are ranked between 0-10 to assess how much continuous value is associated with each company.
If you’re interested in learning about the new score, you can find an article dedicated to it below.
This strategy makes an average of 18.31% annually compared to the S&P 500’s 7.87% annually over the past twenty years. This, though impressive as just a number, is made even more impressive by the fact that this result includes all trading costs over this period for almost 22000 trades. This number, though it seems daunting can be cut down further by you as you analyze each company and find the best fits for your portfolio.
In that time this strategy has consistently outperformed the S&P every year – making more money on up years, and losing less money on down years. When rebalanced on a monthly basis at week 1 this strategy only experiences two down years.
This strategy is fairly diversified across most every industry. However, it does rely a little too heavily on small caps – almost 50% of companies trading in this time period are considered small caps. This, though it may be concerning for people with portfolios that focus on dividends and blue chip stocks is not as big of a deal to younger investors such as myself.