Item description for What Works on Wall Street, Third Edition: A Guide to the Best Performing Investment Strategies of All Time by James P. O'Shaughnessy & Michael Kramer...
Hailed as a great book by Forbes, What Works on Wall Street is a must read for any investor looking to make savvy, historically informed decisions. This updated classic allows you to directly compare popular stockpicking strategies and their results--creating a more comprehensive understanding of the intricate and often confusing investment process.
Outline Review Investors -- be they aggressive or conservative, self-directed or professionally managed -- are always on the lookout for an edge. And in James O'Shaughnessy's What Works on Wall Street: A Guide to the Best-Performing Investment Strategies of All Time, they'll find a solid one: authoritative analysis of popular practices from the past. The author examines three decades of stock market data to show how 15 of the most common investment tactics have fared over time.
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Est. Packaging Dimensions: Length: 1.25" Width: 5.5" Height: 7.5" Weight: 0.4 lbs.
Release Date Jun 25, 2007
Publisher American Media International
ISBN 1933309164 ISBN13 9781933309163
Availability 0 units.
More About James P. O'Shaughnessy & Michael Kramer
James P. O'Shaughnessy is the senior managing director and director of quantitative investments for Bear Stearns Asset Management. The former chairman and CEO of Netfolio, Inc., he has been featured in "Barron's, Forbes", and other major financial publications.
James P. O'Shaughnessy currently resides in Greenwich, in the state of Connecticut.
Reviews - What do customers think about What Works on Wall Street, Third Edition: A Guide to the Best Performing Investment Strategies of All Time?
Hennessy Cornerstone Growth is not performing Jul 2, 2008
It is a good book to read since the strategies make sense and sound reasonable. Author at every opportunity points out that emotions are not part of investing and one must be mechanical when it comes to investing. He proves his points with many many charts and numbers. He made it sound like investing was very simple. I am not too sure if this is the case. There are still many situations that cannot be plugged into equations to make any model to work consistently without human intervention.
After reading this book, I was very excited to try out strategies that I have learned. I was very pleased to read some common sense approach to investing in stocks. However I had my doubts and I started to question the mechanical nature of strategy which seems to make stock picking so simple. Then after reading reviews from this site, I found out that author started a mutual fund based on his growth strategy. I am greatful that author started the fund based on his growth strategy. It is called Hennessy Cornerstone Growth fund, HFCGX. I am greatful because now I know his strategy has not worked for past 10+ years. Looking at Yahoo chart I don't see this fund is performing very well over 5 or 10 years period. Since author's conclusion were based on 52 years of data, then I guess if you got another 42 years then you should make tons of money.
I am disappointed that I probably will never make the money by investing in stocks, since it is more and more like playing slot machine at Vegas than investing.
Worth Reading? Yes. Practical? Maybe. Feb 4, 2008
I've read the comments about this being a "What DOESN'T Work on Wall Street" reference but I tend to disagree. The comments seem myoptic in they only are looking at the short-term. This book out lines a long-term strategy.
Overall I believe this book is worth reading. It outlines and gives evidence of various strategies that work and don't work. Eventually combining single factor strategies into multi-factor ones.
Practical? While I do agree with the book's overall assessment of the strategies it presents, I don't think they are practical from an individual investor standpoint. There were many times while reading the book where I thought this is great information for a fund manager. And that's it. I don't see the everyday individual investor having the resources to gather the necessary data on a yearly basis to determine 50 stocks in the "All Stocks" or "Large Stocks" universes. At one point in the book it is even stated that "his team" is investigating these strategies at the sector level. No individual investor is going to have a team doing anything for them.
What works on Wall Street Third Edition Dec 7, 2007
This is an impressive book, revised and updated from the first edition. (I have not seen the second edition). Especially good is the presentation of the strategies' results by deciles, absent from the first edition. Also, there are a further 9 years of data, including the period 1995-2003. Will the book help you make money? I don't know, but it gives you a fantastically thorough review of strategies which you might want to try. Where else can you get this data for anything like the cost of this book?
Statistical conclusions presented with more brevity in other books Dec 1, 2007
I bought this book because it was referred to in Ken Fisher's latest book and wanted to learn more about using statistical analysis to generate better returns in the market. The author does a great job of presenting his analyses and going through his rationale for why he carried them out the way he did. But whereas Fisher stressed doing statistical analysis with emphasis on generating trading tools to use in a forward looking fashion and to see which trading trends are useful under current market conditions, the author's analyses are performed looking back over decades of previous data with mainly a long term buy and hold strategy in mind. Consequently he arrives at simple value investing conclusions (ie, buy low P/E stocks, buy low P/S stocks, buy high E/P stocks, and avoid growth stocks with high P/Es). But again, in many cases he uses fairly long time periods for the analyses and assumes the use of a buy and hold strategy in which you can buy the stocks and then just let them sit in your portfolio whithout any worries for years to come. Also, he seems to like including the "tech wreck" disaster as an example of why overpriced growth stocks give poor returns to support his conclusions; again assuming you would buy tech stocks and then try to hold them for a long time even if they have a P/E of 200. Overall, gives good advice for people who don't want to do homework or trade often, but not of much value if you're an active trader and the idea of investing in low P/E stocks is presented better elsewhere.
MBA Course Material Jun 11, 2007
I am fortunate enough to be taking a class on investment strategy. This is the book we use. We also have access to the compustat database to test trading theories. Thus far, I have been able to get an annual 44.1% return with a corresponding Sharpe ratio of 1.22 through the database using the methods outlined in this book. Using compustat could not be easier. You enter the criteria you want to filter for (there are literally thousands of built in criteria) and it builds the model by buying the stock at the beginning of the time period and selling it at the end. It does this for the specified amount of time. Mine is every 12 months and it has been run over a 20 year period. So it buys and sells 20 times over the course of the model. I beat the S&P 17 of the 20 years and my worst 'down' period was -8.37%. I just hope I have the discipline to follow through with this model, look out Warren! there is a new oracle in town.
There are over 22,000 companies in the database and I will forever use it to guide me.