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Dear Reader,
It was an incredible experience to see two different lakes up in the mountains near Zug, Switzerland. More importantly, it was nice to largely detach from the markets and technology - and center my focus on family and friends.
My mind is still in my office in Baltimore. I left on Monday still somewhat dissatisfied by last week's experience. While I feel like I did my very best to explain the corporate vision of Money Map Press moving forward - it felt abrupt to some people that I was traveling. I'd booked this trip in early March, right after the banking crisis started. I felt a moment of fear in the markets and felt that I might as well see Switzerland quickly (especially with Credit Suisse collapsing).
My Flashpoint Elite members knew of the trip, but most people did not since we folded my live free show. (More updates are coming on the future of our live content, and I'll be doing an event when the Federal Reserve makes its decisions on June 13.)
Today, I wanted to talk a bit about one of the most important investing tools in our arsenal - especially while momentum is negative. You might have recognized it from yesterday.
To do that, I'll introduce you to the most underrated investor of all time.
Underrated Investors?
Who is the most underrated name in the history of finance?
Is it Adam Smith? Or Warren Buffett? Jim Rogers? Or Benjamin Graham?
What about Stanley Druckenmiller?
There's a case to be made for all of them...
But let me introduce you to Joseph Piotroski.
He created one of the most important money-making strategies in financial history. As I've explained, his (Piotroski) F-score system is one of the most successful algorithmically driven strategies out there - a "poor man's" momentum gauge that tells you everything you need to be assured a company is well run and driving shareholder value to the extreme.
Piotroski's career has centered on undervalued stocks with deep upside and financial discipline. He began his research at the University of Chicago as an assistant professor and later moved to Stanford University.
When Ben Graham's methods were dominant, a lot of investors focused their attention on assets trading under their "book value" or "net asset value."
Piotroski had looked at Ben Graham's strategies, but quickly determined less than half of the value stocks under book value would generate positive returns in two years. So, he believed it wasn't effective. Basically, most stocks see a drop in their shares when trading under that metric.
So, he turned his focus to the stocks that were working for investors. And he created one of the most influential and significant stock-ranking strategies in finance history. This system not only helps investors identify breakout stocks but can also serve as a secret weapon when using momentum signals through TradeSmith Finance.
Now, let's explore this strategy further.
The F-Score Wins Big - and Wins Often
In 2002, Piotroski published a paper…
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.