This topic has been nagging on me for more than a month – and since the last few days, I’ve managed to take some time away from my research for Dr Wealth Insiders (fun stuff – learn more about how you can become an Insider here!) to pen my thoughts on this.
Finance academics and professionals are constantly trying to come up with a “magic” score or metric that will consistently keep delivering superior results… just like the One Ring to rule them all…
Here is a (non-comprehensive) list of some of the more common scores you might have come across:
Piotroski F-score Beneish M-score Altman Z-score Greenblatt’s Magic Formula Zacks Style Score Morningstar Star Ratings Your own ratings based on your own set of criteriaI don’t have any issues with them per se – what I DO have issues with is how some investors, writers and even
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