The ONLY strategy that always works!

Discussion in 'Strategy Development' started by crgarcia, Feb 9, 2009.

  1. Undervalued stocks (low P/Es) of excellent companies, soon or late will go up
    (altough it may takre some years, don't worry, relax at least you are receiving dividends).

    The ONLY strategy that works, everything else is BS.
    Is your strategy profitable after 25+ years of backtesting?
     
  2. BabyDrew

    BabyDrew

    Um...any buy and hold strategy is profitable over the last 25 years. Anything you bought in the 80's was golden. Isn't that the way bubbles work?
     
  3. AIG, FRE, FNM, ABK, BSC, LEH all had very low P/E's and according to you were great buys when they were 75% off their highs.... unfortunately they're now 98% off their high's and in 25 years you will still not be in the money
     
  4. Your claim is questionable (mostly BS) because of survivorship bias. The "rock solid" companies you are testing on are the ones that didn't fail.

    Good luck predicting what co.'s won't fail in the next 25 years...

    Strategies that "always" work have nothing to do with a company's fundamentals. They have everything to do with investor behavior.

    Mike
     
  5. TraDaToR

    TraDaToR

    You must be glued to your screen with such a strategy.

    :D
     
  6. Yep, the strategy that historically has worked would be to buy an index and over 25 years you make money. However, past returns are not indicative of future results.
     
  7. They weren't excellent companies.
     
  8. Thanks Captain Hindsight

     
  9. The only strategy that works is to cut your losers and let your winners run.:cool:
     
  10. "excellent companies"

    that's where you blew it

    sometime 'excellent' can only be defined in hindsight

    enron was an 'excellent' company too

    and all strategies work in hindsight
     
    #10     Feb 10, 2009