Evaluating Piotroski's Picks

I’ve pointed out that AAII.com, the website of the American Association of Individual Investors, details 77 investment strategies and names the tickers of companies passing the focus points of each.

I’d now like to point out that Professor Joseph Piotroski’s stock-selection strategy tops the other 76—and that his way gave double-digit price gains in the last 10, 5, and 3 calendar years. And by the way: his price gain was +70.2% for 2013 through the market close of April 30.

The following strategies, too, were up double digits in each of the last 10, 5, and 3 calendar years:

Stock Market Winners, Price to Free Cash Flow, Driehaus, Buffett: Hagstrom, Neff, Rule #1 Investing, Estimated Revenue: Top 30 Up, Lakonishok, Dreman With Estimated Revisions, P/E Relative, Templeton, IBD Stable 70, Estimated Revenue: Up 5%, O’Neil’s  CAN SLIM, Graham—Defensive Investor (Non-Utility), and MAGNET Simple.

For comparison, AAII suggested the S&P 500 as a benchmark. It was up 5.7% annually (10 years), 2.9% annually (5 years), and 39.4% (3 years)—and 22.5% for 2013 through the market close of April 30.

Also, AAII identifies the companies passing each of the 77 screens.

And Nasdaq provides charts, data, and a bullish/bearish rating for each stock fed into its evaluation procedure.