The previous reviwer gave a nice overview of the '3 pillars' of hyperprofits. This is a good book and the research behind it is impressive (both authors are professors of finance or economics). The book also gives some more general good investment advice, such as: be diversified (but not too diversified--20 stocks is usually a good maximum, or you can have fewer if you have little money).While I just read this book a short while ago I tested to see how it would have done over the last few years, and it still beat the market. Not bad for a 20 year old strategy.
32% return in 1970-80 with lower-than-industry-PE stocks
Published by Thriftbooks.com User , 27 years ago
I came across a book called "Hyperprofits" by Goodman and Peavy which, unlike it's title, seems to be a down to earth way of beating the market by choosing stocks according to three "pillars": 1) choose stocks that have a low PE relative to their industry 2) from these, select stocks that have a low PE relative to the stock's own average PE over several years 3) from these, select small market capitalization stocks, say They claim 32% average annual total return over the period 1970-1980.
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