Obermatt Top 10 Stocks Back Testing

Abstract

In weekly intervals, the Swiss stock research firm Obermatt publishes the top 10 stocks in a stock index based on four different investment strategies. This report describes the results of a back testing of this method. It uses prior year year-end financials to identify top 10 stock tips for a stock index at the beginning of the years 2011, 2012 and 2013. It then compares the returns of these 10 stock tips with the returns of the index that they come from. This report tests 600 investment cases (50 stock indices times 3 years times 4 investment strategies). From the beginning of 2011 to the end of 2013, Obermatt Top 10 Stock Tips generated an average outperformance over the corresponding 50 stock indices of 8.0%. In other words, Obermatt Top 10 Stock Tips generated 8% more returns than the index where they come from. Obermatt stock tips have been better than their index in 454 of the tested 600 cases (76%). The value strategy was right in eight out of ten performance comparisons (81%). The underlying data is available free of charge at Obermatt for further research and publications.

Keywords: stock index research, stock research, investing, stock investing, value, growth, value stock, growth stock, stock screener, obermatt, stock market

JEL Classification: R42, O16, G24, G31, D92, E22, F21