Top investment gurus like Benjamin Graham, Warren Buffett, Peter Lynch, and Joel Greenblatt didn’t only help investors enjoy huge market-beating returns in their funds. They also left behind the keys to the (investing) castle: the methodologies they applied in their market-trouncing performance. They’ve written books, complete with formulas and strategies, that propelled them to the top of their games and gains. Tradestreaming aims to recreate these strategies as we pave our own way to outperformance.
Because a small number of expert investors wrote extensively about their investing techniques, we can now create complicated computer programs to reenact their strategies and apply them to today’s stock markets. Screening 2.0 is all about using smart technology to bring history’s best investors back to life.
Stock screens have been around for decades. Using screens, we can filter through thousands of investment candidates on the prowl for the ideal investment. Old screens merely searched databases of stocks using specific criteria (i.e. all large cap stocks with a p/e less than 20 and a growth rate over 7%). Unfortunately, for most investors, these screens fail — searching for specific stocks tells us nothing about the success of such a strategy.
Screening 2.0, lead by analysis and money management firm, Validea, allows us to recreate history’s best investment strategies, computerize them, and then look for stocks that guru investors like Ken Fisher and Marty Zweig would have purchased themselves. Screening 2.0 is the marriage of search technologies and artificial intelligence with quantitative investing.
Make sure you check out the Tradestreaming for the Internet’s best stock screening resources.
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