With our rating system you have a chance to beat the market over time. Follow the stars to build a portfolio of stocks that interest you the most, while getting help from our algorithm. The highest rated stocks have more stars and the lowest rated stocks have fewer. For more detailed information, download our Whitepaper for free.
Methodology based on Nobel Prize winning research
We use a combination of the most persistent and robust factors – value and momentum – to help build stock portfolios. This is based on Nobel Prize winning research.
Value means that we aim to find a stock with a low valuation that may be mispriced. By adding momentum to our equations we also find strong stocks. Momentum is when a stock’s price has gone up at a relatively high speed.
This is what our algorithms does for you. By using the rating you can then choose for yourself among companies that you like. Automated financial data with freedom of choice.
Build powerful portfolios with little risk
Our method is a quantitative method, which means that you should build a diversified portfolio of several stocks to minimize the risk of individual stocks. This ensures that a few bad performers will not hurt your overall performance.
We recommend buying the top 25 rated stocks, and that you save a little every month to buy some more with every paycheck. For more detailed information, see our Portfolio Construction guide.
For how long should I invest?
The investment philosophy requires that you invest and save over a long period of time (more than 10 years). Time also has the beautiful benefit of compound interest.
A portfolio of the top rated 25 stocks, rebalanced annually has in rigorous back testing returned 23.04% annually in 45 years, starting in 1964, compared to 9.33% in the S&P 500 index, with A dividend is a payment made by a corporation to its shareholders, usually as a distribution of... reinvested.
This means that $1000 becomes $11,110,408, compared to $54,690 invested in the S&P 500 during this same period. This is what compound interest means. Just a few more percent in return each year means over 200 times more money 45 years later. This is the power of longer time horizons and compound interest.
Stocksholm Top 25
S&P 500 index
“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.”
― Albert Einstein
Why it works
The power of stocks
Global stocks have the best historical returns of any asset compared to bonds, gold, diamonds etc. U.S. stocks have even better returns. Investing in funds mean paying heavy fees that can be avoided by buying stocks instead – and there is no benefit in funds when it comes to risk.
Quantitative models are the best
Statistics show that hedge funds and mutual funds on average fail their customers. This is connected to many factors. Some of the strongest factors are connected to psychology – we are humans and make mistakes because of it. Following an automatic system helps us increase our returns.