|
|
| Free Weekly Email |
| Enter Email Address: |
|
|
|
|
|
|
|
 |
| Back to Previous Page | See All Guru Profiles |
Joseph Piotroski | Book/Market Investor
Last Update: 5/24/2013
Joseph Piotroski Profile: Piotroski isn't your typical Wall Street big shot. In fact, he's not even a professional
investor. He's a good old numbers-crunching accountant and college professor. But in 2000, shortly
after he started teaching at the University of Chicago's Graduate School of Business, Piotroski
published a groundbreaking paper in the Journal of Accounting Research entitled "Value Investing:
The Use of Historical Financial Statement Information to Separate Winners from Losers". In it,
Piotroski laid out an accounting-based stock-selection/shorting method that produced a 23 percent
average annual back-tested return from 1976 through 1996 -- more than double the S&P 500's gain
during that time. Piotroski's findings were reported in major financial publications like SmartMoney.
Today, he teaches accounting at Stanford University's Graduate School of Business.
Joseph Piotroski Investment Strategy: Piotroski's methodology starts by narrowing stock choices to those trading in the top 20 percent of the
market based on their book/market ratios (or, conversely, the bottom 20 percent of the market based on price/book ratios). He found
that just buying low price/book stocks does not produce excess returns over the long term, because many low price/book companies are
trading at a discount because they deserve to -- they're dogs with poor prospects. When he applied a series of additional tests of
financial strength to these low price/book stocks, however, Piotroski was able to separate the dogs from the good prospects. Among the
variables he examined: return on assets, current ratio, cash flow from operations, change in gross margin, and change in asset turnover.
The strategy usually finds smaller companies whose stocks are flying under Wall Street's radar.
Research Paper Used for Joseph Piotroski Strategy: Value Investing: The Use of Historical Financial Statement Information to Separate Winners From Losers
Joseph Piotroski Model Portfolio Performance:
Since Inception: 49.49%
S&P 500: 43.95%
Full Performance Details
Stocks Passing Joseph Piotroski Strategy: 10 Stock Model Portfolio | 20 Stock Model Portfolio | All Stocks Passing Methodology
Recent Upgrades and Downgrades:
Upgrades -
Downgrades -
|
| |
| Back to Previous Page | See All Guru Profiles |
|
|
