No. of Recommendations: 4
Hi Jared

I'm not aware of a survey showing which screens are currently being invested in. As for myself I've been using the screens here for many years, migrating more recently from VL to SiPro. (My investing experience goes back to phoning up a broker in the 1970s). My returns have not been great, and I'd have probably done better invested in the SP500. But that option is no longer open to me as an Englishman as the lovely EU has recently banned its citizens trading in American ETFs. I'm even more glad I voted Brexit.

Most people here would advise you strongly to follow your own path to investing. Rules of thumb for me include:
1. Avoiding low cap, low price, low average volume stocks. I have accumulated money through investing, but the downside is that SiPro stocks have generally better returns for the smaller investor.
2. Avoiding non-USA and REITs.
3. Trying to have a high Sharpe ratio. This measures CAGR divided by variation.
4. Look at drawdown history--do you really want to risk losing 60% or so?
5. Looking over the history of performance, e.g. how did it do in 2008, etc.
6. Keeping an eye on the financial climate, while trying to avoid getting whip-sawed. This includes not getting too alarmed too easily by what people might say.

I think that many screens haven't done so well in recent times, possibly due to the problems of how they are derived in the first place. There is probably a tendency to data-mine to optimise parameters that are good at that moment and seem retrospectively excellent. By that I mean that hindsight is wonderful for setting unrealistic expectations. Statistical regression to the mean usually subsequently can dash hopes. This means it's essential hat we should not cull any screen that don't work, as it gives an unreleastic picture and serves to keep a sobre perspective.

Anyway there are plenty here much better at this than I. There's a manual for beginners somewhere here. See if you can find it.

John
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.