The Best Investment Style of the Last 50 Years

The Power of Factor Investing: A 50-Year Success Story

Today, I want to talk to you about the investment style I used when I started in the world of finance. It's one of the most profitable styles that exist (even more so than the buy and hold of an index) and, if done correctly, can yield returns far above average.

Specifically, a 10% return over the last 50 years. This means that $100k turns into $12M.

This investment style is introduced in Joel Greenblat's book, 'The Little Book That Beats The Market.'

In this book, the author explains how by choosing the most important metrics of companies, you can achieve truly extraordinary returns.

Obviously, this book is very much aimed at beginners in the investment world. In fact, Joel wrote it for his young son.

However, it lays the foundations of Factor Investing.

It has been proven that many of the world's most important fund managers follow a selection style very similar to this one.

Today, I will bring you the factor that has stood out from the rest over the last 50 years.