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Author: razorfangius Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 213580  
Subject: Re: Influence on ROE in Investing returns Date: 10/5/2012 5:31 PM
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If you take just the best 3% bucket above and buy the 5 stocks with the highest 5
year growth in book value per share the average return is 22%/year.
(though at that point trading costs become an issue)
You can see how it's easy to become a quant.


I tried:

1. enw top 50
2. bg5 top 5

which I think is what you suggested. Results are indeed killer for the one month hold from 1997 onward, but something bad was happening prior to that ... underperforms the S&P from 1986 to 1996 .... 8% vs. 15%.
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