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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: mungofitch ✹✺🐝 SILVER
SHREWD
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Number: of 6243 
Subject: Re: ROE_Cash & YEY Blend
Date: 01/23/24 9:29 AM
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No. of Recommendations: 10
There was a post in 2016 listing returns for {ROEPLOW} and {ROIC}...

FWIW, for the original VL versions in the 8 years since that post, ROEPLOW has been largely useless (market tracking or a small penalty), but ROIC has done very nicely.
ROIC has beat the S&P by around 3%/year, monthly at any depth from 5 to 25.

ROIC at depth 25 quarterly after trading costs, advantage 3.26%/year, beating the S&P in 85% of the rolling years.
GSD barely above the S&P if you care about such things (16.6 vs 16.0)


As an aside, never underestimate how much randomness there is in any backtest of only 5 or 10 stocks. This is the biggest issue by far on why so many screens have disappointed after they were created: we found the luckiest screens and variants and posted them. The roll-off in rolling 10 year performance is not uncorrelated with the fraction of each 10-year rolling period that was within the original lucky backtest window.

Jim
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This community has written 6,227 posts about Mechanical Investing. The article-length ones it recommended most:
Dividend investing · 52 recs · 2025
Non-Mag7 screen · 34 recs · 2025
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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