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Investors are Achieving a 23.9% CAGR Copying This Simple Strategy

Published 05/06/2024, 02:57 pm

For investors navigating the stock market, the primary aim should be to outperform the benchmark index rather than pursuing improbable returns. Many mutual funds fail to exceed benchmark returns, making it challenging for investors, particularly novices, to pick winning stocks. This is where InvestingPro+ comes in, offering a groundbreaking tool called "ProPicks" that simplifies the process of identifying market-beating stocks with precision and minimal guesswork.

So, what is ProPicks? This innovative tool leverages artificial intelligence to pinpoint stocks likely to outperform market benchmarks. Using a proprietary AI model, ProPicks analyzes historical financial data to classify stocks as underperformers, neutrals, or outperformers based on various metrics. With over 25 years of comprehensive data covering thousands of companies, ProPicks ensures accuracy and minimizes biases.

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The selection criteria are diverse, encompassing factors like sector, liquidity, and market capitalization to refine the stock selection process and exclude irrelevant options such as penny stocks. Each strategy undergoes rigorous backtesting against historical data to ensure robust performance in real-world trading scenarios. The best part? InvestingPro+ users can access this feature at no additional cost.

Image Source: InvestingPro+

One standout strategy is "Beat the S&P 500," which employs advanced AI models to analyze stocks from the 500 S&P stocks across sectors. It identifies the top 20 performers each month with the highest probability of outpacing the market. Since its launch on January 1, 2013, this strategy has delivered an impressive return of 1,052%, significantly surpassing the S&P 500 return of 270% over the same period. This translates to an outstanding outperformance of 782%, with an annualized return of 23.9%.

With monthly rebalancing, this strategy keeps the portfolio dynamic, adding and removing stocks as needed. Investors can easily replicate this portfolio in their accounts, using insights provided by their personal financial advisors.

In addition to ProPicks, InvestingPro+ offers a range of other features, including ProTips, which provides concise fundamental information about companies, fair value assessments, financial health checks, and more. All these features are available at a limited-time discounted rate. Click here and avail 69% off and start maximizing profits with InvestingPro+ before the offer expires.

Read More: Unlocking Investment Potential via Fair Value

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