What is the difference between stocks selected by the AVI strategy and the list of interesting stocks?
When you’re offered a list of interesting stocks - whether by a friend or a broker - the following applies:
- These are stocks selected based on certain criteria. For example, these stocks offer good dividends. Or they’ve been performing well recently. Or they have interesting projects in the pipeline…
- You evaluate the stocks from the list of interesting ones yourself and decide whether or not to buy any of them.
When you see a list of stocks selected by a strategy, it means that:
The criteria used to select the stocks have been tested, and they result in a PORTFOLIO of stocks that, when held over the long term, outperforms the market.
The key here is precisely the PORTFOLIO of stocks. We tested how a portfolio of stocks selected based on 19 parameters performs. Not how each individual stock performs, not how several stocks from the portfolio perform, but specifically how the entire portfolio performs.
As a result of a vast number of tests, we have selected three strategies that identify portfolios of stocks that outperform the market. We know how these portfolios perform: how often they outperform the market, by how much they outperform the market, how often they underperform the market, and by how much. This information is available here: https://avistocks.com/backtestingresults
If you select one or more stocks from the portfolio suggested by the strategy, we do not know how these stocks will perform or whether these particular stocks will outperform the market.
Therefore, we recommend purchasing the entire portfolio proposed by the strategy. You can purchase a portfolio for each of the strategies or for two of them. However, we do not recommend purchasing individual stocks from the portfolio selected by the strategy.
Discussion on Telegram
No comments yet. Be the first!
Sign in with Telegram. Your comment will appear under the post in the channel.