Singing Pig

I went to an investment seminar and the speaker said that there was this proven 20% return method.

1. Get a list of dow jones 30 shares

2. Select 10 with highest dividend yield

3. From the 10 select 5 with the lowest price

4. First trading day in Jan. buy equal amounts of these

5. Hold for exactly one year and sell them all

6. Repeat the whole process

Apparently this has returned an average over 20% for the last 27 yrs.

Does any one know if this is true and have a link to the explanation. In a pitch to sell their over priced product they also said there was a strategy that can also return 30%. Does anyone know of this strategy or a link to it? 

After some research ithink i have answered my own question and i thought i may share.

1. Of the 5 stocks above take the four (4) with the highest prices

2. invest 40% in the lowest priced stock and 20% in the other 3

3. the average is actually 28%

 

I don't know if these are any good, it is just what I read they're not my personal strategy or one that i guarantee will make you the stated returns. iam wondering if any one heard of theses and if these are fact or fiction?

 

 

Its explained fully in the book Beating the DOW by Michael o'Higgins,also and in my opinion much better book on investing The New Contrarian by David Dreman simple strategies and time tested whilst you expand your knowledge

Thank you for that Zulu.

 

I have read many places that you should pick a style and stick to it and so I have the CANSLIM sytem by William O'neill I did research on this style and I think it suits me. I was wondering does anyone subscribe to this methodology? If you do could you share your experiences with it?

 

Thank you 

Yes CANSLIM is an excellant system again with proven results in all types of market,more growth than value and the stoploss is too tight for me but can be modified easily to fit your trading style,I have a clone of o'Neils canslim with good results its one of many clones I use to highlight companys of interest,may I also suggest you read How to trade your way to financial freedom by van.k.tharp well worth the money for sharpening your entry,exit and position sizing criteria

Interesting strategy... does this work with shares from the FTSE 100?

canslim will normally be used for growth stocks usually smaller capitalization than FTSE shares but easy to filter for minimum size or liquidity very tight stop though

beat the dow by john higgins,

good book

explains this method