Driehaus Screen for Growth and Momentum Stocks

Momentum investors seek rapidly growing companies with prices to match. Their hope is that continued growth will attract additional investors who will continue to drive up the stock price. That investment philosophy, centered on earnings growth, underlies the approach used by Richard Driehaus, who was named to the Barron’s All-Century Team of All-Stars in 2000….

 

Screening With the Big, Safe Dividend Formula

Many investors seek income to supplement their portfolio returns while at the same time insulating themselves from market declines. In “The Little Book of Big Dividends: A Safe Formula for Guaranteed Returns” (John Wiley & Sons, 2010), Charles Carlson outlines a recipe for investment success: “Find stocks with above-average appreciation potential and safe and growing…

 

Tweedy, Browne: “What Has Worked in Investing”

Many individual investors embody value investing—Benjamin Graham and Warren Buffett immediately come to mind. Among investment management firms, perhaps none is as devoted a follower of the principles of value investing as Tweedy, Browne Company. In his book “Smarter Stock Picking” (FT Press, 2010), David Stevenson wrote: “Graham may be the patron saint of most…

 

Going From a Stock Screen to a Real Portfolio

Not all that long ago, “stock-picking” entailed tedious, relentless research. In order to get the complete financial picture of a firm and its shares, individual investors had to scour the pages of financial newspapers or pore over scores of thick, dull annual reports. You either spent hours upon hours in the local library or you…

 

David Dreman’s Contrarian Approach to Stock Selection

David Dreman is a famous investor whose name is linked with the definition of “contrarian.” Contrarians think independently, as opposed to going along with the crowd. Dreman feels that irrational behavior in the markets tends to push a stock’s value away from its true value. The savvy contrarian investor executes a value investing approach with…

 

Lowell Miller’s Best Dividend Screen

A low-interest rate environment has helped to fuel a run-up in the prices of dividend-paying stocks. Equity-income investing is once again fashionable, but some investment advisers have always preached the long-term benefits of investing in dividend-paying stocks. Lowell Miller is known for his disciplined, dividend-focused investment strategies. He founded Miller/Howard Investments Inc. (www.mhinvest.com) in 1984…

 

AAII Stock Screens Update: Wanger Revised Screen Gains 2.6% During September

The October AAII Stock Screens Update is now available online. Featured Screen: The Wanger–Revised Approach Ralph Wanger, the founder of Wanger Asset Management and the former manager of the Acorn Fund (now the Columbia Acorn Fund), is a consistent promoter of small-stock investing. His investing style of holding small companies with financial strength, entrepreneurial managers, and…

 

How AAII Builds and Presents Stock Screens

Year to date, the Oberweis Octagon screen leads all approaches tracked by AAII, up 42.9% through the end of July. Such a high return is very tempting when the market is up only 6.3% over the same period. But blindly chasing high returns without understanding the drivers and characteristics of a given approach is often…

 

Constructing Winning Stock Screens

This article originally appeared in the December 2012 issue of the AAII Journal. When searching for stock investing candidates, it may be easy to come up with a list of meaningful screening criteria, but building and applying a cohesive set of criteria can be challenging. Screening is the application of quantitative criteria to a broad universe…

 

CAN SLIM Revised Screen up 33% Year-to-Date

The October AAII Stock Screens Update is now available online. September wasn’t an excellent month for many stock screens, or markets in general. However, several AAII stock screens are up year-to-date, including the CAN SLIM Revised screen. The CAN SLIM approach is presented by William O’Neil, publisher of Investor’s Business Daily, in his book titled…