>>21351929>interesting, i'll do those for the rest of the morning. effectively you're filtering for companies that are consistently converting their accounts to cash?No, bad Sloan ratio is just another huge red flag. We can increase our alpha in statistically significant ways by yeeting stocks with red flags out of our portfolios. This is on top of our existing strategy, whatever it is.
Here's another one. If you have stocks that fail this test (GuruFocus has a free M-score reading), they're likely to be financial manipulators and will crash and burn sooner or later. Enron, wirecard, and tons of other shitcos had a failing M-score and could have been avoided, yet nobody cared.
