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Jerry Parker

I bought things whose price was going up and sold them when their price fell.

And yet momentum has proven to work!

Yuval Taylor

Momentum works--modestly--over the long term (six to twelve months). There's a good explanation for this that has nothing to do with a stock's price: it's that companies with good, solid performance tend to continue to have good, solid performance. But I was relying on short-term momentum (one to two months), which doesn't exist.


Great post, thanks for sharing. I can remember learning a few of the same lessons on my own the hard way.

I've read some of your other posts about how you test your hypotheses and come up with the best criteria for sound companies to invest in using Portfolio123, but could you please share how you discover the companies that match your criteria?

Thanks a lot for the help!

Yuval Taylor

Well, Eric, I have a ranking system on Portfolio123 that ranks all the stocks in my universe (over 3,000 of them) by the criteria that I choose. I then buy the top-ranked stocks. Those are the ones that are most likely to fit all of my criteria.


Hi Yuval, I'd be interested in a (non-investing) post about your experience living in Bolivia that you mention. There's a little bit on the internet, but there's probably

Yuval Taylor

I kept a diary while in Bolivia. It's at http://backland.typepad.com/

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