The fundamental flaw in systems based on past fundamental data which are published in a book and now used as a stalking horse for investments from outsiders is that each time he comes out with a new book he has found better methods based on a moving window of retrospective data.

I'd also suggest that value-momentum is a widely known and disseminated alleged anomaly, and like many things that worked better before everyone knew about it, I suspect the strategy's prospects are not as good as the back tested history. Moreover, given the rate of compounding, if it works, then the many billions pursuing this already will have grown to a substantial part of (more than?) the total market capitalization of equity markets (to say nothing about any capitalization effect that would be nullified by large amounts of capital pursuing the same strategy in anything but large caps).


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