Friday, December 12, 2008

At last!

Finally, after many months with nothing to buy, I bought AIPC yesterday @ $20.74. It has all the attributes I require, let's see what happens! It's my only open position.

Investing strategy

AFAIC there are only four factors that outperform in the stock market which have survived robustness tests:

1. Earnings (PEAD) - Ball & Brown (1968)
2. Value - Basu (1977)
3. Size - Banz (1981)
4. Momentum - Jegadeesh (1990)

I only buy stocks with all of these characteristics. My biggest winner so far was PWEI which I bought at $6 and was acquired at $33.50