What Works on Wall Street continues to provide the most effective investing strategies, presenting incontrovertible data on what works and what doesn’t. Updated with current statistics and brand-new features, What Works on Wall Street offers data on almost 90 years of market performance, including:
- Stocks ranked by market capitalization
- Price-to-earnings ratios
- EBITDA to enterprise value
- Price-to-cash flow, -sales, and -book ratios
- Dividend, buyback, and shareholder yields
- One-year earnings-per-share percentage changes
After reading What Works on Wall Street, investors will know that:
- Most small-capitalization strategies owe their superior returns to micro-cap stocks having market capitalizations below $25 million. These stocks are too small for virtually any investor to buy.
- Buying low PE ratio stocks is most profitable when you stick to larger, better-known issues.
- The price-to-sales ratio is the most consistent value ratio to use for buying market-beating stocks.
- Last year’s biggest losers are among the worst stocks you can buy.
- Last year’s earnings gains alone are worthless when determining if a stock is a good investment.
- Using several factors dramatically improves long-term performance.
- You can do ten times as well as the S&P 500 by concentrating on large, well-known stocks with high shareholder yield.
- Relative strength is the only growth variable that consistently beats the market, but it must always be matched with other factors to mitigate its high levels of risk.
- Buying Wall Street’s current darlings having the highest PE ratios is one of the worst things you can do.
- A strategy’s risk is one of the most important elements to consider.
- Uniting growth and value strategies is the best way to improve your investment performance.
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