What Works on Wall Street

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Review What Works on Wall Street: The Classic Guide to the Best-Performing Investment Strategies of All Time



Author James P. O’Shaughnessy’s “What Works on Wall Street” shares a history of one of the biggest financial crises – resulting in near-negative returns and overall market sentiment dropping into the bearish zone. O’Shaughnessy’s book challenges the readers with a question: what would they do if put in the shoes of market participants in the given situation? In his book, “What Works on Wall Street” acts as an investment guide in one of the world’s largest stock markets – sharing invaluable investment strategies and insights on historical patterns on data that is sure to widen the knowledgeable landscape of many traders and analysts. 

About the Author

James P. O’Shaughnessy is chairman and CEO of O’Shaughnessy Asset Management. He previously served as a portfolio manager, director of systematic equity, and senior managing director for Bear Stearns. O’Shaughnessy is the author of the bestsellers What Works on Wall StreetHow to Retire RichInvest Like the Best, and Predicting the Markets of Tomorrow: A Contrarian Investment Strategy for the Next Twenty Years.

Table of Contents

  • Introduction
  • Acknowledgements
    • Chapter 1: Stock Investment Strategies: Different Methods, Similar Goals
    • Chapter 2: The Unreliable Experts: Getting in the Way of Outstanding Performance
    • Chapter 3: The Persistence of Irrationality: How Common Mistakes Create Tremendous Opportunity
    • Chapter 4: Rules of the Game      
    • Chapter 5: Ranking Stocks by Market Capitalization: Size Matters
    • Chapter 6: Price-to-Earnings Ratios: Separating the Winners from the Losers
    • Chapter 7: EBITDA to Enterprise Value
    • Chapter 8: Price-to-Cash Flow Rations: Using Cash to Determine Value
    • Chapter 9: Price-to-Sales Ratios
    • Chapter 10: Price-to-Book Value Ratios: A Long-Term Winner with Long Periods of Underperformance
    • Chapter 11: Dividend Yields: Buying an Income
    • Chapter 12: Buyback Yield
    • Chapter 13: Shareholder Yield
    • Chapter 14: Accounting Ratios
    • Chapter 15: Combining Value Factors into a Single Composite Factor
    • Chapter 16: The Value of Value Factors
    • Chapter 17: One-Year Earnings per Share Percentage Change: Do High Earnings Gains Mean High Performance?
    • Chapter 18: Profit Margins: Do Investors Profit from Corporate Profits?
    • Chapter 19: Return on Equity
    • Chapter 20: Relative Price Strength: Winners Continue to Win
    • Chapter 21: Using Multifactor Models to Improve Performance
    • Chapter 22: Dissecting the Market Leaders Universe: The Ratios That Add the Most Value
    • Chapter 23: Dissecting the Small Stocks Universe: The Ratios That Add the Most Value
    • Chapter 24: Sector Analysis
    • Chapter 25: Searching for the Ideal Growth Strategy
    • Chapter 26: Searching for the Ideal Value Stock Investment Strategy
    • Chapter 27: Uniting the Best from Growth and Value
    • Chapter 28: Ranking the Strategies
    • Chapter 29: Getting the Most Out of Your Equity Investments
  • Bibliography
  • Index