Giving some extra context on how the zen score is calculated for whoever is interested:
- All US listed equities are put on a curve for each one of the flagged fundamental values: ROIC, 5y Revenue growth, Debt-To-Ebidta, PEG ratio (relative to long term expected growth).
- Each one of the fundamental values is assigned a score for each one of the values, based on their grade and based on what has been found to be significant for long term returns.
- All scores are weighed (according to their importance) together to provide an aggregate score for the company.
- The result is that approximately only 1% of us listed equities have above a 90 score, representing the best quality-value tradeoff amongst all equities listed.
- So far in my analysis, 80+ zen score companies have achieved a 6% gain over the past month, in a period the snp500 has returned -2% return. I rebalance monthly according to the changes in the zen score.
Of course this is a very short investment period to come to any conclusions, but this methodology is based on a very long term regression analysis that has shown time and time again to be a true differentiator in long term risk-adjusted-returns.
Giving some extra context on how the zen score is calculated for whoever is interested:
- All US listed equities are put on a curve for each one of the flagged fundamental values: ROIC, 5y Revenue growth, Debt-To-Ebidta, PEG ratio (relative to long term expected growth).
- Each one of the fundamental values is assigned a score for each one of the values, based on their grade and based on what has been found to be significant for long term returns.
- All scores are weighed (according to their importance) together to provide an aggregate score for the company.
- The result is that approximately only 1% of us listed equities have above a 90 score, representing the best quality-value tradeoff amongst all equities listed.
- So far in my analysis, 80+ zen score companies have achieved a 6% gain over the past month, in a period the snp500 has returned -2% return. I rebalance monthly according to the changes in the zen score.
Of course this is a very short investment period to come to any conclusions, but this methodology is based on a very long term regression analysis that has shown time and time again to be a true differentiator in long term risk-adjusted-returns.