BobHank

Are Index Funds the Only Rational Choice?

One of the best sources on backtesting stocks is O'Shaugnessy's "What Works on Wall Street". He wrote this in 1995. He analyzed and came up with different portfolios, that he then went on to backtest. He came up with 5 different portfolios that were built on a risk tolerance.
He started a fund company and offered these funds.

His funds massively underperformed, even before 2000. He closed the funds.

His analysis is superb in the book. To this day, i don't have a rational explanation for why it failed Others will use their 20/20 hindsight to tell me why O'Shaughnessy's analysis and portfolios didn't work. But his approach is the same presented by Mr. Considine.
The book is well worth your time.