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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: musselmant ✧☼  😊 😞
Number: of 6243 
Subject: Re: A really new strategy (maybe)
Date: 12/16/25 12:43 PM
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No. of Recommendations: 6
Unless you are buying an index fund, what relevance is the 10-year expected return of the index? We already knew that a small number of stocks give you all your return; why shoot to include other, mediocre stocks? We aren't a billion-dollar mutual fund that has to worry about diversification rules and avoiding buying the whole company because we have so much money.

gtr1.net: GTR1 Backtester - Liquid_consolidators

60% better CAGR than the index with higher sharpe and same beta. Worse drawdown -69% v. -60% (i.e. both bad).

gtr1.net: GTR1 Backtester

150% better CAGR than its index, with marginally better drawdown (still horrible), better sharpe, marginally worse beta.

I.e. the point of this board isn't to buy an index fund.
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This community has written 6,227 posts about Mechanical Investing. The article-length ones it recommended most:
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OT - Div yields and returns · 32 recs · 2024
Using AI to generate backtesting programs · 30 recs · 2025
Rankings for 19Dec2022 · 29 recs · 2022
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