A Quantified Approach To Investing In The Stock Markets
Why do most investors underperform the stock markets?
Most likely due to three reasons:
1) You have no clear-cut plan.
2) You have not looked at the historical performance of different investment strategies.
3) Overtrading and changing your opinion frequently. Or perhaps you make behavioral mistakes like selling in the midst of panic and reentering on the way up.
By taking this course, we believe you will understand why you need an investment plan.
Furthermore, you get to know the factors/investment strategies that have worked in the past. This is normally a pretty good indicator of what will work in the future, although it is no guarantee it will do so.
The course is pretty extensive (see full content list below) and have more than 20 000 words - more than a small book.
We cover the following lessons in the course:
- Why Invest in stocks
- Compound interest - the eight wonder of the world.
- Save - The Earlier You Start Saving, The Better
- Your End Result Depends On The Rate Of Return
- The Marginal Rate Of Return - What it is and why it is so important
- Spend Less Than You Earn – Save Money Regularly
- Time Is The Friend Of The Great Business – Not The Poor Business
- Behavioral Mistakes And Risk - The importance of keeping emotions and impulses away from your investments
- Market Timing - Should You Try To Time The Market?
- The Myth Of The Expert – Trust Yourself instead of listening to gurus
- Circle of Competence - stick to what you know and understand
- Are Women Better Investors Than Men?
- Diversification – What Is It, Why You Need It
- Diversification Among Asset Classes
- International Diversification
- Inside Ownership — Family Business
- Shareholder-Friendly Countries
- Capital Allocation — What Is It?
- 5 Ways of Capital Allocation
- Debt — Potential Ruin
- Capital-Intensive and Cyclical Businesses
- Quantified Investment Strategies**
- Why Dividend Stocks?
- Dividend Stocks Are Recession-Proof? Dividend Aristocrats
- The Payout Ratio Is Important
- Which Dividend Yield Should You Buy?
- How Safe Is The Dividend?
- Arguments Against Dividend Stocks
- Buybacks - Instead Of Paying A Dividend
- Shareholder Yield - Advanced Dividend Investing
- Competitive Advantages
- Some Industries Are Better Investments Than Others
- Can You As An Investor Have Competitive Advantages?
- Margin Of Safety – Your Safety Valve Against Disaster
- Investment Checklist/Plan – Why It Matters
- Buy and hold
- Should You Be A Passive Or Active Investor?
- Finale – Make It Simple
**Investment strategies are based on previous published research on factor investing. We cover the following strategies:
- Stocks Are Good Investments - As A Group
- Stock Picking Is Difficult - Most Stocks Perform Badly
- P/E Price Earnings
- P/CF Price/cash Flow
- P/B - Price/Book
- P/S - Price Sales
- Value vs. Growth
- Quality Stocks
- Low volatility stocks
- Piotroski F-Score
- Momentum
- Equal Weight vs Market Weight
- Small-Cap effect
- The Magic Formula
- Sin Stocks - Unethical Stocks
- Spin-Offs
- IPOs
Anything missing? Please let me know and I might include it in the course. Email: oddmund at quantifiedstrategies dot com