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bytoric's avatar

Hi Luke, for calculating these 11 metrics, did you use the end of 2021 figures or end of 2020?

Since the idea of a portfolio is to pick the stocks that will perform well in the "future", it would be better to judge the performance of these metrics, with respect to what they "predicted" at the end of 2020. Otherwise, since these metrics are functions of income, revenue, capitalisation, etc. it is normal that stocks that did well in 2021 has strong metrics at the end of 2021 (and vice-versa).

I hope what I wrote make sense. I would be really interested to see such a future looking analysis. Best, h.

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Luke M's avatar

So, you’ve covered a really important point here. This is 2021 data and 2021 returns.

Coincidental data isn’t forward looking data. Future-looking analysis comes next : )

In the meantime, however, this is still important work because we want to establish at the minimum our coincidental performance before we can expand that to the future!

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