James O’Shaughnessy’s Tiny Titans Stand Tall in 2018

Mighty Minis: Tiny Titans Stand Tall in 2018 Our annual recap of the AAII Stock Ideas almost had a repeat of last year’s “worst to first” turnaround. This year’s top-performing AAII screening strategy ranked near the bottom in 2017. We also discuss some important and useful changes we have made to the Stock Ideas section…

 

Common Stock Repurchases: A Bane or Boon to Shareholders?

Why Value Beats Growth: A Brief Explanation In the long run, value stocks perform better because the markets are not perfectly efficient and investors overpay for growth. That is not to say that value always outperforms. The key when it comes to all investment approaches is to have the discipline to see it through periods…

 

The Origins of the AAII Model Shadow Stock Portfolio

AAII InvestoGraphic: Adjusting Overweight Positions Allowing a portfolio position to become oversized relative to your other holdings undermines the concept of diversification. This AAII InvestoGraphic offers guidance on how to pare down a position in a stock whose gains have caused it to have an outsized weighting relative to the other portfolio positions. The Model…

 

The Advantages of Quantitative Stock Selection

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Hagstrom’s Essential Buffett Stocks Given Warren Buffett’s success as an investor, it is no wonder that many try to mimic his investment philosophy. This has given rise to an entire cottage industry of books that try to distill Buffett’s approach. One such book is…

 

The Basics of Real Estate Investment Trusts (REITs)

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   A Look Back at History: Lessons From the Financial Crisis Three columns that provide a flashback to the last bear market and contain lessons that are still very valid today. Looking back over time, the stock market has been a very good investment, outperforming…

 

Revisiting the Lakonishok Approach to Patient Value Investing

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   EPS Revision Screen Building a screen to isolate S&P 1500 members with price-earnings ratios below their five-year average high and rising earnings estimates. Revisiting the Lakonishok Approach to Patient Value Investing Josef Lakonishok believes value outperforms growth because investors don’t expect much from value…

 

The Essence of the Benjamin Graham Approach

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Volume Surges Have a Fading Impact on Returns Generally speaking, stock movements accompanied by spikes in volume are thought to be more meaningful and more likely to continue versus those movements made on relatively light trading volume. While new data from Australia shows that…

 

The Top AAII Stock Screens of 2017

  The Essence of the Benjamin Graham Approach Benjamin Graham has been called the father of value investing and is considered by many to be one of the most successful investors of all time. It’s good reason then that his stock selection methodology has been mimicked by other successful investors such as Warren Buffett. This…

 

Using Sell Signals to Improve Results

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Model Shadow Stock Portfolio: Special Update and Rule Changes Ahead of the next quarterly review of the Model Shadow Stock Portfolio, which will take place at the end of this month, AAII’s chairman James Cloonan reveals some key changes to the selection rules used…

 

When to Sell and Nail Down Your Profits

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Revising the MAGNET Screens The MAGNET system targets the fastest-growing companies that are still trading at a discount to their intrinsic value. Companies in this category are likely to enjoy dynamic earnings growth. We call these companies “MAGNETs.” They tend to stimulate investor response…