a business quality ranking system

Research
1

Steven Chen, a former hedge-fund analyst, has posted on Seeking Alpha a ranking system that, to my eyes at least, is extraordinarily well thought-out. You can find it here: https://seekingalpha.com/article/4134602-13-stocks-top-factor-based-value-investing-ranking-system. It’s full of ideas I either have already explored or plan to explore myself. It seems from a comment that he built the ranking system himself without P123, just using Excel and data from MorningStar, WSJ, Yahoo Finance, etc. It doesn’t include his valuation methodology, which I assume he’ll cover in a subsequent post. I hope someone else finds it useful too.

2

Thanks for posting this. I made a first attempt today at building a ranking system using his ideas and it shows a fair bit of promise. There are ideas here I hadn’t considered before.

3

Thanks for sharing, Yuval.

Kind of reminds me of a system I built a few years back: http://the-world-is.com/blog/2014/02/the-ten-pillars-of-quality-investing/#expectations

Basically, this is all a validation of your “price blind” thesis in which value creation (vice valuation reversion) is the primary driver of long term market returns.

4

Thanks Yuval for the mentioning!

It took quite a while before I signed up for portfolio123 here. Last month I did some research backtesting the quantitative factors here through a simulation. check out- https://seekingalpha.com/article/4260430-introducing-urbem-quality-score and https://www.portfolio123.com/port_summary.jsp?portid=1571043

5

Hi Steven, I enjoy reading your articles on a quality-focused investment approach. Good to see you here.

6

Hi Steven - I too enjoy your articles on SA. Welcome!