There is a new book out called Millennial Money by Patrick O’Shaugnessy. It recommends screening and ranking and gives a shout-out to Portfolio123 as a tool to do so. Here’s the link to the book on Amazon:
http://www.amazon.com/Millennial-Money-Young-Investors-Fortune/dp/1137279257
I’ve been getting a number of queries of how to build his checklist on page…you know, I’m not sure what page. I bought it on Kindle, so it’s at the 50% mark of the book. He also notes that you can use his findings as a ranking system.
To save time for everyone, I’ve put his system into these public screens/ranks:
Checklist Screener:
https://www.portfolio123.com/app/screen/summary/119902
Ranking System:
https://www.portfolio123.com/app/ranking-system/243197
Ranking Screen that takes the top 25 (meaning no rules, it just points at the ranking system):
https://www.portfolio123.com/app/screen/summary/119904
A few notes:
O’Shaugnessey doesn’t say what universe he’s using, and his system frequently veers into penny stock territory when left to its own devices. It seemed to test well with the Prussell 1000, which is a compromise between a conservative universes and the penny stocks. Users can choose a universe of their own, of course.
He also doesn’t mention a rebalance period. It seems to work OK with four weeks, so that’s what I used. (I should note that I skimmed the book to create the screen, so if anyone has read it in detail and can correct this, please let me know.)
We don’t get any explicit buyback information, so shareholder’s yield is approximate. I’m going with the negative change in the number of shares. (I also tried Equity Purchased, EqPurchTTM, but it didn’t seem to work very well.)