What Works on Wall Street

Review What Works on Wall Street: The Classic Guide to the Best-Performing Investment Strategies of All Time

by JAMES P. O’SHAUGHNESSY

What Works on Wall Street

Description

Looking back on the history of finance, records pose the most atrocious market and financial declines. This has led to a new culture wherein little to no returns is considered the new norm, the buy-and-hold system is barely practiced, and investor’s sentiment in equities sunk to low ground. This setup leaves one with only two options. One can fully turn his or her back from the stock market, or one might want to continue investing with hopes that the future will result in good outcomes.

Equipped with new and updated data, What Works on Wall Street remains to be the only guide that presents the market in its rawest context, properly laid out in respect of the natural characteristics of the stock landscape. This book is effective in providing the most conducive investing techniques, underlining strategies that work from those that fail. Armed with the most recent figures and statistics, this primer provides data on the nine-decade long performance of the market. 

About the Author

James P. O’Shaughnessy works as the chairperson and chief executive officer of O’Shaughnessy Asset Management. Initially, he worked as a portfolio manager, systematic equity manager, and senior manager of Bear Stearns. 

Table of Contents

Introduction

  1. Stock Investment Strategies: Different Methods, Similar Goals
  2. The Unreliable Experts: Getting in the Way of Outstanding Performance
  3. The Persistence of Irrationality: How Common Mistakes Create Tremendous Opportunity
  4. Rules of the Game
  5. Ranking Stocks by Market Capitalization: Size Matters 
  6. Price-to-Earnings Ratios: Separating the Winners from the Losers 
  7. EBITDA to Enterprise Value 
  8. Price-to-Cash Flow Ratios: Using Cash to Determine Value 
  9. Price-to-Sales Ratios
  10. Price-to-Book value Ratios: A Long-Term Winner with Long Periods of Underperformance
  11. Dividend Yields: Buying an Income
  12. Buyback Yield
  13. Shareholder Yield 
  14. Accounting Ratios 
  15. Combining Value Factors into a Single Composite Factor
  16. The Value of Value Factors
  17. One-Year Earnings per Share Percentage Changes: Do High Earnings Gains Mean High Performance?
  18. Profit Margins: Do Investors Profit from Corporate Profits?
  19. Return on Equity
  20. Relative Price Strength: Winners Continue to Win
  21. Using Multifactor Models to Improve Performance
  22. Dissecting the Market Leaders Universe: The Ratios That add the Most Value
  23. Dissecting Small Stocks Universe: The Ratios That Add the Most Value
  24. Sector Analysis
  25. Searching for the Ideal Value Stock Investment strategy
  26. Uniting the Best from Growth and Value
  27. Ranking the Strategies 
  28. Getting the Most Out of Your Equity Investments

Bibliography

Index

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