Quant Value Newsletter
Last updated: 30 June 2018
Up 151% over eight years; index only 50% (3 times better)
If you invested in all of the European investment ideas since July 2010 - when the newsletter was started - you would have a return of 151%. If you exclude the cash in the portfolio and look only at the return of the investment ideas you would have done even better at +340%
If you invested in the European STOXX 600 Index, your return would have been only 50%.
This is nearly 3 times better than the index.
Here is the long term performance of the portfolio:
European portfolio total performance
European portfolio yearly performance
Return of €1000 invested in the European portfolio vs Index
No cash return
No cash returns show you the performance on ONLY the investment ideas excluding the cash in the portfolio which earns nothing and decreases performance.
The following table shows the performance of all the ideas recommended in the European portfolio:
North American portfolio
North America has lagged the index
The North American ideas have not done nearly as well as in Europe. This is a fact I have never tried to hide, and I have kept you up to date every time I wrote to you about performance.
Here is more information on the portfolio's performance:
North American portfolio total performance
North American portfolio yearly performance
In spite of lagging the index the ideas have been very good. Since October 2011 the newsletter has recommended 105 North American investment ideas, all of which would have given you an average return of +19% - you can also see this in the no cash performance numbers which nearly matched the index.
Change the strategy?
Although the North American investment ideas have lagged behind the S&P 500 index, I am not planning to change the model I use to select investment ideas.
As you know, regardless of how well they have performed in the past, even the best investment strategies can underperform the market as Joel Greenblatt mentioned in his excellent book The Little Book that Still Beats the Market before they catch up and start to outperform again.
Why bad performance is good
In his book, Joel also says that periods of underperformance are a good thing for a good investment strategy, because without such periods, the strategy would be used by so many investors that it would stop working.
We have to be patient
As I have told you in the past - we just have to be patient. It is simply a matter of time before the North American strategy starts outperforming the market.
The Asia portfolio was only started in January 2016 - when it became very hard to find investment ideas in North America and in Europe - I have only included the following chart:
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As you can see the investment ideas of all three portfolios have performed very well.
Not everywhere, but as you know in investing, you cannot win them all.
To get these market beating ideas working in your portfolio take a few minutes and sign up right now.
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Wishing you profitable investing
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