Patrick O'Shaughnessy is the CEO of O'Shaughnesssy Asset Management and the host of the popular Invest Like the Best podcast. In his book "Millennial Money: How Young Investors Can Build a Fortune", he outlined a simple, easy to follow investment strategy for younger investors that outperformed the market by a wide margin in his testing. Patrick is a CFA Charterholder and holds a B.A. in Philosophy from the University of Notre Dame.
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Since 2008, this portfolio has returned 880.9%, outperforming the market by 494.3% using its optimal monthly rebalancing period and 10 stock portfolio size.
Validea used the investment strategy outlined in the book Millennial Money written by Patrick O'Shaughnessy to create our Millennial Investor portfolio.
In investing, simple is often better. Many investment strategies get bogged down in complexity without the performance results to show for it. This strategy uses a simple set of five criteria that get at the heart of the factors that drive investment performance over time. It looks for firms with high shareholder yield (indicating that they are focused on providing value to the owners of their stock), high return on invested capital, inexpensive valuations (via enterprise value to free cash flow), operating cash flow that exceeds accounting earnings, and relative strength in the top 75% of the market.
The current top 10 highest rated stocks according to this strategy.