All Quarterly Models Updated as of March 6th 2017

Warren Buffett

Manager of Berkshire Hathaway

Also referred to as the Oracle of Omaha, Warren Buffett is perhaps the most widely known investor. He manages Berkshire Hathaway.

He is known for his value approach to common sense investing. He has been attributed to such axioms as:

  • never lose money
  • invest in wonderful companies at a fair price
  • be fearful when others are greedy but be greedy only when others are fearful

Benjamin Graham

Father of Value Investing

Father of value investing. His style influenced Warren Buffett.

Graham’s philosophy and style is often linked to an examination of the net current asset value (NCAV). Of utmost importance was finding a deeply discounted bargain.

Other considerations were reasonably satisfactory earning records and prospects, a sound financial condition and the presence of dividends.

Peter Lynch

Advocate of the PEG ratio

Peter Lynch is a well-known fund manager and author with titles such as, One Up On Wall Street (1989) and Beating the Street (1993). Peter Lynch is known as a story investor. He invests in what he knows.

Perhaps his best-known techniques is summed up in the PEG or price-to-earnings to growth ratio. The PE ratio should roughly be equal (or less) than the forecast earnings growth.

Joseph Piotroski

F-Score Ranking

Joseph Piotroski is an American professor who teaches at the Stanford University Graduate School of Business.

His 2001 paper, Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers, set him apart in the investment community. Piotroski outlined 9 factors to be applied to value stocks which generated an excess return of at least 7 percent annually.

The 9-point scoring system was labeled F-Score.

Martin Zweig

Growth at a Reasonable Price

Martin Edward Zweig is a renowned investor, mutual fund manager and author. His highly-publicized book which came out in 1986 was titled, Winning on Wall Street.

The general investment style could be summed up with growth at a reasonable price. Zweig was primarily a growth investor but he had a conservative side which did not like to overpay for stocks. On the flip side, he was also wary of stocks which traded at too heavy of a discount.

Joel Greenblatt

'Magic Formula' Investing

Joel Greenblatt is the originator of the ‘Magic Formula’ written about in his famous book, The Little Book That Beats the Market.

The basic ranking of stocks is made up of 2 parts: Earnings Yield and Return on Capital.

I would describe this as a hybrid between quality and value.

Simulated Annual Returns (CAGR)          2002 – 2017          Premium Models

TSX 4.78% CAGR
Lynch’s Market Beaters (Peter Lynch) 15.29% CAGR
Graham’s Deep Value (Benjamin Graham) 15.85% CAGR
Joel’s Secret Stocks (Joel Greenblatt) 20.86% CAGR
Wonderful Buffett Bargains (Warren Buffett) 21.48% CAGR
Fantastic F-Scores (Joseph Piotroski) 23.70% CAGR
Martin’s Wall Street Winners (Martin Zweig) 25.31% CAGR
O’Neil’s Rocket Stocks (William O’Neil) 31.71% CAGR

Stock Wiz Canada – Legendary Inspired Models

All presented strategy performance is hypothetical using a back-testing platform free of survivor-ship bias. Simulated model performance is from 2002 to 2016. Some liquidity restrictions have been applied (Min $1 per share and average daily turnover (shares traded x price) of $50K in monthly model and $500K in quarterly model). All positions are equal-weight. Transaction costs and slippage are not shown. Actual results will vary from simulated returns shown below. The free version models on the website are re-balanced quarterly and the premium models are re-balanced monthly. The quarterly models have a higher liquidity minimum meaning that more actively traded stocks are used.

Portfolio Inspired by Strategy Name Backtested Annual Return (Premium Monthly Model) Backtested Annual Return (Free Quarterly Model) TSX Annual Return (2002 -2016)
Benjamin Graham Graham’s Deep Value 15.85% 14.63% 4.78%
Martin Zweig Martin’s Wall Street Winners 25.31% 18.73% 4.78%
Warren Buffett Wonderful Buffett Bargains 21.48% 15.10% 4.78%
Peter Lynch Lynch’s Market Beaters 15.29% 12.50% 4.78%
Joseph Piotroski Fantastic F-Scores 23.70% 18.98% 4.78%
Joel Greenblatt Joel’s Secret Stocks 20.86% 14.93% 4.78%
William O’Neil O’Neil’s Rocket Stocks 31.71% 17.70% 4.78%