23min chapter

Many Happy Returns cover image

Building a Multi-Factor Stock Portfolio, with Ed Croft

Many Happy Returns

CHAPTER

Optimizing Stock Ranks for Portfolio Performance

Exploring the significance of stock ranks derived from financial data in creating a multi-factor stock portfolio and their predictive ability for future market performance. The chapter delves into ranking strategies, historical performance analysis, and the impact of diversification on stock selection across different markets like the US and UK. Discussions include the challenges of value investing, benefits of a multi-factor approach, and comparisons between individual and institutional investors in stock market participation.

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