Htown Harry
Thinks s/he gets paid by the post
- Joined
- May 13, 2007
- Messages
- 1,525
I hope you mean the troll subject, Alex.And those are the last words I'll have on that particular subject.
C'mon back. I was looking forward to a discussion of the study I linked.
My two cents: while the study results are somewhat compelling on the surface, I didn't see whether the universe of stocks they ranked into quintile groups were evaluated on today's conditions or on the conditions at the beginning of the study period. It makes a huge difference.
It would prove little - and have a weak relevance to stock selection using their method - if stocks with favorable dividend and quality characteristics today performed well over the past x years. It only says "you will have good returns over ten years if you select stocks that will show good quality and high dividends ten years from now." That is unknowable to today's investor.
On the other hand, if the "quality stocks with high dividends" group was selected based on measuring those characteristics at the beginning of the study period, they might be onto something. You, too, Alex.