Whats so special about stocks that have split?
The original idea for the 2 for 1 portfolio and newsletter came from an article entitled “A Strong Signal” that appeared in the April 22, 1996 of Forbes magazine. This piece discusses a study undertaken at Rice University where the performance of stocks split 2 for 1 is measured in relation to performance of the market as a whole. The final results of the study are published in the Journal of Financial and Quantitative Analysis and would indicate that there is a measurable difference in the performance, for up to three years, of stocks that have split 2 for 1 as opposed to those that have not. Top of Page • What is “laddering”? Laddering is the technique of regularly buying and selling securities in a portfolio so as to always maintain a constant number of securities as the portfolio moves through time. The theory, for 2 for 1, is that our stocks statistically do better than the market for 2 to 3 years, based on a Rice University study. We keep 30 stocks in the portfolio (30 months = 2
The original idea for the 2 for 1 portfolio and newsletter came from an article entitled “A Strong Signal” that appeared in the April 22, 1996 of Forbes magazine. This piece discusses a study undertaken at Rice University where the performance of stocks split 2 for 1 is measured in relation to performance of the market as a whole. The final results of the study are published in the Journal of Financial and Quantitative Analysis and would indicate that there is a measurable difference in the performance, for up to three years, of stocks that have split 2 for 1 as opposed to those that have not. Top of Page • What is “laddering”? Laddering is the technique of regularly buying and selling securities in a portfolio so as to always maintain a constant number of securities as the portfolio moves through time. The theory, for 2 for 1, is that our stocks statistically do better than the market for 2 to 3 years, based on a Rice University study. We keep 30 stocks in the portfolio (30 months = 2
