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Good To Great – Make the Right Investments

Good to Great

One of our more recently featured screens, Good to Great, was designed in order to find reasonable companies that are fairly consistent in their earnings. With a maximum of only 5 results it cuts down the time required to analyze and choose investments. Now, we never trust history 100%, but if you had used this screen starting in 2000 you would have returned over 5000% compared to the S&P’s return of 103% in that same time frame.

What Does this Screen Look For?

The photo above is basically the base of the entire strategy. At its core these arguments are looking for companies that have a sales growth between 8 and 25% over the past three years. The sweet spot for this strategy is between 8% and 15%, however, by including the upper limits we are able to normalize the ranking that we do in the next step and create a less volatile strategy  overall.

It also makes sure the company isn’t a financial services company.

The next thing the “Good to Great” strategy does is sort all of the companies that passed the original phase by the Income Statement Score added to the Value Score – both proprietary scores that are only found within the Equities Lab system.

The Positions

Over the past 16 years this strategy has taken on a total of 283 positions. Of that, 191 positions were winning positions. That means there is an almost 68% success rate when investing using this strategy – giving you a statistical edge on the market.

Overall

In the event that you –
1) Don’t have the capital to start investing in a portfolio of 100+ positions
2) Don’t fully understand how to build a long term investment strategy
3) Don’t have the time to analyze hundreds if not thousands of potential investments
4) Need a statistical edge when trading and want to utilize quantitative analysis more in your investment strategy

You may want to take a look at using this strategy in your portfolio. This is one of the most simplistic and powerful strategies within the Equities Lab platform. Our system was designed to make you money, not take it from you.

If this strategy isn’t for you, we have over 100 different screeners within our system. Take a look and I’m certain you’ll find something that fits your portfolio. If you still don’t email us and we will happily help make one designed for you. Happy Investing.

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