CHH - Beating The Market With A Simple Quantitative System
Investing is always a matter of probabilities as opposed to certainties. There is no way to tell for certain how a specific asset or an investment strategy is going to perform in a particular period.
On the other hand, statistical data shows that companies offering some specific quantitative attributes tend to outperform the markets in the long term. Among other factors, research has proven that profitability, valuation, and momentum are among the most effective and robust return drivers.
Regarding profitability, it's quite easy to understand why companies that make high returns on capital tend to