Stuff outperforming the index gets priced in pretty quickly after it becomes public knowledge. I like Piotroski F-score as a filter for quality but I would further refine it by another quality metric, technical strategy, or both. Good stuff as always Nathan 👍
Well said! Most of the time, this is true, other than psychological-based anomolies rooted in human nature and emotions, which are far harder to change. Thinking momentum, for example
I was playing around with the f score about 15 years ago but by then it was in the market and didn’t seem to be making much difference I suppose you can always add some new wrinkles and then backseat them and some of them will work for a while and maybe after 50 years the originals will work again.The problem is of course you are bumping up against many brilliant people and now systems which no doubt are running these sorts of tests all the time.The efficient market hypotheses is an overriding factor in markets and so any convoluted ranking system will quit working in short order Id say anyway.Interesting video though and i’ll watch it a few times.I wonder what kind of an F score warren buffet uses and he will have one and based on his 13f filings i would think it would be possible to reconstruct it. Cheers
Thank you for making this video. You have not only given your thoughts on the F scores but given us a different and perhaps more current and updated version of it. Appreciated. I always learn something new and useful by watching your videos.
Best channel I seen so far, you should have at least 1 mln subscribers but you will, most traders or “investors” will probably just gamble instead of listening to pros
Any chance you could do a video sometime covering finance-type designations such as the CFA, CFP, CIM, MBA, CPA, etc? Do you think they are still worth it? Any concerns of AI having major impacts on the professions, etc? You seem very knowledgeable and would be a great topic for your younger viewers thinking about their financial careers.
Great analysis! You might be onto something here! I wonder how the strat would work if you run the screen only on the S&P 500 companies and take away the market cap requirement. Sounds like I should get a portfolio 123 subscription and start playing! 😂 Could be a great strategy to identify solid blue chip companies for actively trading options on. Lots of great candidates in there for the wheel strategy I bet.
3:19 Nathan, did you explain Ltd/Assets correctly? You drew an up arrow next to Ltd, then stated that increased Ltd was a negative thing. To my mind, you would want a low debt to asset ratio.
It seems like it was working reasonably well until the pandemic, and after the pandemic most of the market returns were from the magnificent 7.. so maybe it's our timeline that's weird, who knows knows.
I suppose if you fiddle with historical data you can find characteristics which produce superior returns. But I fail to see how this fiddling can better inform current investment decisions.
Eh, maybe it’s all for nothing, but I’d like to think that considering things that have worked historically and match common business sense, not just random variables, provide at least some semblance of help, particularly in screening. But appreciate Your thoughts!
Thanks for the reply! By combining Piotroski score and momentum, I mean applying momentum investing techniques within the universe of stocks that have high Piotroski scores. For example, after identifying stocks with a high Piotroski score, the next step would be to select only those that show positive momentum over a recent period (e.g., 3, 6, or 12 months) and backtest this combined approach. I’m curious to see how the combination would perform over time compared to using just the Piotroski score alone.
![Can you beat Warren Buffett with a simple formula? [1988-2021]](http://i.ytimg.com/vi/HItRftkPBz8/mqdefault.jpg)
![Stromae, Pomme - “Ma Meilleure Ennemie” (from Arcane Season 2) [Official Visualizer]](http://i.ytimg.com/vi/1F3OGIFnW1k/mqdefault.jpg)
Stuff outperforming the index gets priced in pretty quickly after it becomes public knowledge. I like Piotroski F-score as a filter for quality but I would further refine it by another quality metric, technical strategy, or both. Good stuff as always Nathan 👍
Well said! Most of the time, this is true, other than psychological-based anomolies rooted in human nature and emotions, which are far harder to change. Thinking momentum, for example
@@NathanWinklepleckCFA One of these days we'll have to have a convo my friend
I was playing around with the f score about 15 years ago but by then it was in the market and didn’t seem to be making much difference I suppose you can always add some new wrinkles and then backseat them and some of them will work for a while and maybe after 50 years the originals will work again.The problem is of course you are bumping up against many brilliant people and now systems which no doubt are running these sorts of tests all the time.The efficient market hypotheses is an overriding factor in markets and so any convoluted ranking system will quit working in short order Id say anyway.Interesting video though and i’ll watch it a few times.I wonder what kind of an F score warren buffet uses and he will have one and based on his 13f filings i would think it would be possible to reconstruct it. Cheers
Buffett is on record saying book value is next to meaningless.
I'm curious how the Winklepleck modified screen compares to the Piotroski screen from 1976-1996.
Thank you for making this video. You have not only given your thoughts on the F scores but given us a different and perhaps more current and updated version of it. Appreciated. I always learn something new and useful by watching your videos.
Thank YOU for the excellent question!!
Very interesting! Thank you for sharing Nathan.
My pleasure!
Best channel I seen so far, you should have at least 1 mln subscribers but you will, most traders or “investors” will probably just gamble instead of listening to pros
Wow, thank you so much for this nice comment! Sadly, the most viral videos are usually bad advice that sounds good to the masses…
Have you back tested the "magic formula investing"
Not yet, but I will!
Any chance you could do a video sometime covering finance-type designations such as the CFA, CFP, CIM, MBA, CPA, etc? Do you think they are still worth it? Any concerns of AI having major impacts on the professions, etc? You seem very knowledgeable and would be a great topic for your younger viewers thinking about their financial careers.
Great idea! 💡
@@NathanWinklepleckCFA Thank you!
Cool. Where is the ETF?
😂
How about ROIC vs ROE?
Great analysis! You might be onto something here!
I wonder how the strat would work if you run the screen only on the S&P 500 companies and take away the market cap requirement. Sounds like I should get a portfolio 123 subscription and start playing! 😂
Could be a great strategy to identify solid blue chip companies for actively trading options on. Lots of great candidates in there for the wheel strategy I bet.
It does pretty well, up to 2020. Could this be explained by a change from value to growth?
Yes, probably at least a good chunk could! Value has been terrible since then, but even going back to post-07
3:19 Nathan, did you explain Ltd/Assets correctly? You drew an up arrow next to Ltd, then stated that increased Ltd was a negative thing. To my mind, you would want a low debt to asset ratio.
Yeah increases in long term debt relative to assets would be a 0. Did I say it like that? Lots of directions here lol
Thanks for the interesting video!
Glad you liked it!
Hit the like button before watching😂
I hit the like button on your comment before reading! 😝
Myself i clap before watching a show all the time and laugh before i hear a joke.
If I had to guess Value outperforming is primarily dependent on cost of Capital. Rates have been historically low.
It seems like it was working reasonably well until the pandemic, and after the pandemic most of the market returns were from the magnificent 7.. so maybe it's our timeline that's weird, who knows knows.
Could be!
Interesting thx! Should compare vs NASDAQ 100 👍
Would be interesting to score top 50 in Nasdaq
If you have minor tongue slips when editing does it effect you?
Depends on how silver it is.
What lol 😂
@@NathanWinklepleckCFA
1:30 you said the wrong year lol
@@wasbii22 and you used the wrong affect
I am still waiting for March Madness result from 2023….
I suppose if you fiddle with historical data you can find characteristics which produce superior returns. But I fail to see how this fiddling can better inform current investment decisions.
Eh, maybe it’s all for nothing, but I’d like to think that considering things that have worked historically and match common business sense, not just random variables, provide at least some semblance of help, particularly in screening. But appreciate
Your thoughts!
Hi
Bro's gatekeeping the list after he made a whole video on it
Could you please backtest piotroski score and perform momentum investing over the universe?
What do you mean?
Thanks for the reply! By combining Piotroski score and momentum, I mean applying momentum investing techniques within the universe of stocks that have high Piotroski scores. For example, after identifying stocks with a high Piotroski score, the next step would be to select only those that show positive momentum over a recent period (e.g., 3, 6, or 12 months) and backtest this combined approach. I’m curious to see how the combination would perform over time compared to using just the Piotroski score alone.