Geraldine Weiss

Geraldine Weiss

Geraldine Weiss, one of the few female investors featured on this platform, was heavily influenced by the teachings of Benjamin Graham, in particular Security Analysis and The Intelligent Investor. In 1966, Weiss started the Investment Quality Trends letter, making her the first woman to start an investment advisory service. Her book Dividends Don’t Lie outlined her approach to investing in which she considered Dividends to be one of the best barometers of a company’s value.

Summary

Weiss’ investment strategy is to buy the top Dividend paying stocks and sell when the Dividends hit historical lows. According to Weiss, companies can cheat on profits and revenues, but they can’t on Dividends, which make them a safer indicator of a company’s value. Weiss has six criteria for evaluating all stocks and another six criteria exclusively for blue-chip stocks.

Success Formula Dividends Original

Original (1988) from Weiss’ book

  1. MktCapM is >= US$ 300 million (basis year 2000) adjusted yearly
  2. Dividend growth periods >= 5x over past 12 FY
  3. Outstanding Shares for latest FQ is >= 5 million
  4. Institutional shareholders are >= 80
  5. EPS over last 12 FY increased >= 7 FY
  6. Dividend paid out >= 12 past FY
  7. Rank according to current Dividend Yield % (higher is better)

Hypothetical performance back-tested

Data source: Bloomberg, Calculations: meetinvest

Disclaimer

Hypothetical performance is not necessarily indicative of future results. No representation is being made that any action will achieve profits or losses similar to those displayed. The result may be overstated as neither transaction costs nor bid/ask spreads nor slippage have been considered. Output equally weighted with maximum 5% allocation per position and rebalanced monthly. Holdings are systematically replaced when the screening criteria are not met anymore. No additional buying or selling rules (technical analysis) have been employed.

Historical monthly relative performance

How to read this graph:
A green bar shows how much the guru strategy outperformed the benchmark index in a particular month. A red bar shows how much the guru strategy underperformed the benchmark index in a particular month.

Data source: Bloomberg, Calculations: meetinvest

Disclaimer

Hypothetical performance is not necessarily indicative of future results. No representation is being made that any action will achieve profits or losses similar to those displayed. The result may be overstated as neither transaction costs nor bid/ask spreads nor slippage have been considered. Output equally weighted with maximum 5% allocation per position and rebalanced monthly. Holdings are systematically replaced when the screening criteria are not met anymore. No additional buying or selling rules (technical analysis) have been employed.

Historical portfolio turnover

Data source: Bloomberg, Calculations: meetinvest

Books

Success Formula Blue-Chip Dividends Revised

  1. MktCapM is >= US$ 300 million (basis year 2000) adjusted yearly
  2. Dividend growth periods >= 4x over past 10 FY
  3. Outstanding Shares for latest FQ is >= 5 million
  4. EPS over last 10 FY increased >= 6 FY
  5. Dividend paid out >= 10 past FY
  6. Compound annual Dividend growth rate over 10 FY >= 8%
  7. P/B is <= 2
  8. P/E is <= 20
  9. Dividend Payout Ratio long term <= 50%
  10. Latest filing total debt to total assets ratio is <= 25%
  11. Rank according to current Dividend Yield % (higher is better)

Hypothetical performance back-tested

Data source: Bloomberg, Calculations: meetinvest

Disclaimer

Hypothetical performance is not necessarily indicative of future results. No representation is being made that any action will achieve profits or losses similar to those displayed. The result may be overstated as neither transaction costs nor bid/ask spreads nor slippage have been considered. Output equally weighted with maximum 5% allocation per position and rebalanced monthly. Holdings are systematically replaced when the screening criteria are not met anymore. No additional buying or selling rules (technical analysis) have been employed.

Historical monthly relative performance

How to read this graph:
A green bar shows how much the guru strategy outperformed the benchmark index in a particular month. A red bar shows how much the guru strategy underperformed the benchmark index in a particular month.

Data source: Bloomberg, Calculations: meetinvest

Disclaimer

Hypothetical performance is not necessarily indicative of future results. No representation is being made that any action will achieve profits or losses similar to those displayed. The result may be overstated as neither transaction costs nor bid/ask spreads nor slippage have been considered. Output equally weighted with maximum 5% allocation per position and rebalanced monthly. Holdings are systematically replaced when the screening criteria are not met anymore. No additional buying or selling rules (technical analysis) have been employed.

Historical portfolio turnover

Data source: Bloomberg, Calculations: meetinvest

Books

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