Will The Real O’Shaughnessy Please Stand Up?

Tiny Titans: A Brief History After he published his book in 2006, James O’Shaughnessy became a household name in financial circles. In particular, he is known for creating the “Tiny Titans” stock screener, an algorithm which has become celebrated for delivering extremely high returns, albeit somewhat volatile ones. O’Shaughnessy’s screen focuses on low-cost tickers with small market caps. His reasoning goes that, as small as these companies are, most analysts ignore them in their investigations, and large, well-known mutual funds are unable to buy shares without subsequently altering the price. This lack of attention suggests that there quite a few

Should I Invest In Money Losing Companies?

A common theory is that a company making money will outperform a company that doesn’t. Is that really true? I am here today to test how companies that make negative money or no money do compared against the S&P 500. The graph to the right shows a screener with companies not making money in green and the S&P 500 in brown. The green is underperforming the brown for most of the time, with the occasional spikes, as shown in the back test by time inset. Therefore, on average, companies that don’t make money underperform the market. Companies that don’t make

A Fond Farewell for Tyler McCain

Tyler has worked with us for about 4 years: doing anything that needed doing. From testing (tedious but critical) to creating new strategies that manage risk and optimize returns, to writing articles (137 of them!), handling customer issues and more. He has also created much of the course work that students use to learn investing, including the Equities Lab 101 course on every account. He’s been a joy to work with, a massive help, and more, and we are going to miss him.I say farewell to Tyler McCain for the best possible of reasons: he has succeeded in launching his

My time here at Equities Lab

After four years it is now time for me to move onto the next chapter. My time here at Equities Lab has been fantastic, and I’ll still be around posting articles here and there. But before then I’d like to summarize my experiences here in this article. Since I was first introduced to finance when I was 13, it is something that has always interested me. Regardless of other interests, whether they be computers, engineering, or cars I always seemed to come back to the idea that I belonged in the field of finance. This was apparent to the people

Who’s Betting on Blockchain? – the Thousand Year Article

With all the hype surrounding Bitcoin in recent years due to price fluctuations, it’s been hard to ignore. You hear about it on business news, you read about it on your Twitter feed, and then you hear the word “blockchain”. Blockchain is essentially the technological architecture that supports Bitcoin, but it holds far more potential than just that. Many people deem the mastermind behind this term to be Satoshi Nakomoto, the anonymous creator of Bitcoin. However, if you look into the original white paper the words “block” and “chain” are never conjoined but used separately, then later popularized. By the