Without doubt, this is the best paper every written on What Has Worked In Investing.
What Has Worked In Investing, Studies of Investment Approaches and Characteristics Associated With Exceptional Returns
A long time ago, Tweedy Browne compiled a complimentary booklet entitled What Has Worked In Investing.
Their paper describes over 50 academic studies of certain investment criteria that have produced high rates of return in investing.
In their studies Tweedy Browne found that attractive returns were found for stocks with one or more of the following investment characteristics: low stock price in relation to book value; net current assets; earnings; cash flow; dividends or previous share price; small market capitalization and a significant pattern of stock purchases by one or more insiders (officers and directors), or by the company itself.
Their booklet focused on mature markets from around the world. The investment characteristics, which are value-oriented characteristics, were the core of Tweedy Browne’s successful investment philosophy and stock selection decision making process for more than 50 years, and were the basis for their management of the Global Value Fund, Global Value Fund II — Currency Unhedged, Value Fund, and Worldwide High Dividend Yield Value Fund.
It’s a must read for all value investors.
You can download a free copy of their booklet here:
For all the latest news and podcasts, join our free newsletter here.
Don’t forget to check out our FREE Large Cap 1000 – Stock Screener, here at The Acquirer’s Multiple:
