Hackinvest total return formula

I uploaded a revision to my Hackinvest guide on scribd. In section 4.3 I explored a simple and somewhat naive formula for picking stocks, based on yield, ROE, retained earnings, and mean reversion of PE ratios. I picked out 3 companies: BWNG, MCRO and SN. I noted that the implied returns looked to high and were unlikely to be attained in practice. That was kinda true, although the performances were: BWNG +84.0%, MCRO +30.4%, SN. +22.1%. All them blasted the All-Share returns out of the water: ASX +13.1%.

The results could well have been spurious, of course, and dependent on the type of the company selected. Still, if the results got even close to being repeatable, who wouldn’t want a return that made it into the 20’s?


About mcturra2000

Computer programmer living in Scotland.
This entry was posted in Uncategorized. Bookmark the permalink.

One Response to Hackinvest total return formula

  1. shinygoldcar says:

    BWNG and MCRO eh? I’ve heard of them before somewhere… 🙂

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s