A few weeks ago I announced that I was in the process of creating a new course based on a value strategy I created to select deep, value stocks. That strategy (called the Marwood Value Model) is now ready and open for enrolment.
As I mentioned before, this is a classic value strategy, and it’s a great complement to other trend following, momentum, or growth investing strategies.
What is the Marwood Value Model?
Too many traders and investors get caught up in the wild roller coaster that is the stock market. Some base their decisions on chart patterns, some listen to stock tips, and many trade at precisely the wrong time.
Mechanical traders too, often limit their strategies to include only technical rules, because it can be too complicated to build strategies involving fundamentals.
In this course I detail a unique and original strategy that is based upon the twin concepts of value and momentum.
The system uses a mix of financial ratios (and one momentum rule) in order to select cheap stocks.
This is a strategy that has shown annual returns in excess of 20% per annum over the last 15 years with a modest drawdown and attractive Sharpe ratio. It’s also flexible and comes in two different variations.
Value & Momentum
These two concepts, value and momentum, have an excellent history in the stock market and the rules on this course are grounded in this theory. Indeed, the rules are based on the working of all the famous value investors, from Benjamin Graham and Warren Buffett, to Joel Greenblatt and Peter Lynch.
As you take the course, you’ll learn about value investing and how to build a strategy, and then I’ll show you the exact rules I use to select cheap stocks.
In sections 4 and 5 of the course I detail the rules in great detail and teach you why each rule is used as it is. Factors like P/E ratios, price-to-sales ratios, and free cash flow ratios are dissected and shown in a simple format.
Then later, in section 7, I use a simulator to back-test the rules over historical data, so you can see exactly how the rules have performed over time.
In section 9, I introduce another version of the rules. This time the rules are relaxed to give a greater selection of stocks to choose from. This is the loose version of the strategy, and it too, shows great returns overall.
I then go through 10 more qualitative rules for stock selection.
By combining the rules together and going through all of the lectures in this course, you’ll be ready to take on the stock market and start making wealth-compounding annual returns.
So are you ready to begin your journey into quantitative investing?