What Works on Wall Street, Fourth Edition

The Classic Guide to the Best-Performing Investment Strategies of All Time

Historically tested long-term strategies that always outperform the market

Which investment strategies are winners—and which are losers? What factors most reliably indicate that a stock will rise or fall? Are value strategies better than growth? Do small capitalization stocks do better than large? What is the worst-case scenario for the various investment strategies and how long did it take for them to recover? Do these strategies work outside the United States? James O’Shaughnessy answers all of these questions in What Works on Wall Street, Fourth Edition: The Classic Guide to the Best-Performing Investment Strategies of All Time (McGraw-Hill Professional; November 2011; HC, $45.00). Containing all new data, this is the only investing guide that allows you to see today’s market in its proper context— as part of the historical ebb and flow of the stock market. And when you see the data, you’ll see there is no argument: Stocks work. Recent history has witnessed one of the worst stock market beatings ever. As a result, abysmal returns are being called “the new normal,” financial “experts” are ringing the death knell of buy-and-hold, and investors’ faith in equities has hit an all-time low. You have two choices. You can abandon the stock market based on what is happening today. Or you can invest today based on what will happen in the future.

Having been called a “statistical guru” and “legendary investor,” O’Shaughnessy shares his methodical, scientific, and results-based method for making intelligent stock market decisions. He says, “To make the best investment plans for the future, investors need access to unbiased, long-term performance results.” And that is exactly what he gives you in this history-making book. Now in its second decade of helping investors succeed with stocks, What Works on Wall Street continues to provide the most effective investing strategies, presenting incontrovertible data on what works and what doesn’t. Updated with current statistics and brand-new features, O’Shaughnessy offers data on almost 90 years of market performance, including: stocks ranked by market capitalization; price-to-earnings ratios; EBITDA-to-enterprise value; price-to-cash flow, -sales, and -book ratios; dividend, buyback, and shareholder yields; one-year earnings-per-share percentage changes; accounting and leverage ratios; sector specific factor analysis; new multifactor strategies.

Providing you with unparalleled insights into stock performance going back to 1926, What Works on Wall Street is a refreshingly calming, objective view of a subject that is usually wrapped in drama, hyperbole, and opinions that are plain wrong. This comprehensive guide provides the objective facts and winning strategies you need; all you have to do is make the decision to ignore the so-called market experts and rely on the long-proven approach that has made What Works on Wall Street an investing classic. What Works on Wall Street will yet again reach experienced individual investors, self-directed investors, and institutional investors across the board: This volume can be used in bull and bear markets. Don’t mess with success—start off 2013 armed with best practices for investing!

About the Book

Recent history has witnessed one of the worst stock market beatings ever. As a result, abysmal returns are being called “the new normal,” financial “experts” are ringing the death knell of buy-and-hold, and investors’ faith in equities has hit an all-time low. You have two choices. You can abandon the stock market based on what is happening today. Or you can invest today based on what will happen in the future. Containing all new data, What Works on Wall Street, Fourth Edition, is the only investing guide that lets you see today’s market in its proper context― as part of the historical ebb and flow of the stock market. And when you see the data, you’ll see there is no argument: Stocks work.

Now in its second decade of helping investors succeed with stocks, What Works on Wall Street continues to provide the most effective investing strategies, presenting incontrovertible data on what works and what doesn’t. Updated with current statistics and brand-new features, What Works on Wall Street offers data on almost 90 years of market performance, including:

• Stocks ranked by market capitalization

• Price-to-earnings ratios

• EBITDA to enterprise value

• Price-to-cash flow, -sales, and -book ratios

• Dividend, buyback, and shareholder yields

• One-year earnings-per-share percentage changes

Providing you with unparalleled insights into stock performance going back to 1926, What Works on Wall Street is a refreshingly calming, objective view of a subject that is usually wrapped in drama, hyperbole, and opinions that are plain wrong. This comprehensive guide provides the objective facts and winning strategies you need; all you have to do is make the decision to ignore the so-called market experts and rely on the long-proven approach that has made What Works on Wall Street an investing classic.

About the author

Jim O'Shaughnessy is the Chairman and CEO of O'Shaughnessy Asset Management (OSAM). Also serving as the Chief Investment Officer of the firm, Jim is ultimately responsible for OSAM’s investment strategies. He directs the Senior Portfolio Manager, Director of Research and the Portfolio Management Team and helps to set the agenda for the team. He is also responsible for the development of OSAM’s existing strategies and directs the team on idea generation and specific initiatives to improve the models and develop new factors and products. Prior to founding OSAM, Jim was the Director of Systematic Equity at Bear Stearns Asset Management and a Senior Managing Director of the firm. Prior to Bear Stearns, he was the CEO and Chairman of O’Shaughnessy Capital Management (Netfolio). Long recognized as one of America's leading financial experts and a pioneer in quantitative equity analysis, he has been called a "world beater," a "statistical guru" and a "legendary investor" by Barron's. Higher Returns said he is "one of the most original market thinkers we've come across." Kiplinger's Personal Finance Magazine said: "You ignore his message at the risk of your own future wealth. His trailblazing research suggests new ways to invest.

“O’Shaughnessy’s conclusion that some strategies do produce consistently strong results while others underperform could shake up the investment business.” ―Barron’s

“What Works on Wall Street is indisputably a major contribution to empirical research on the behavior of common stocks in the United States. . . . Conceivably, the influence of What Works on Wall Street will prove immense.” ―The Financial Analysts’ Journal

“O’Shaughnessy’s latest, What Works on Wall Street, is a serious inquiry into the investment strategies that stand up under long-term scrutiny and is refreshing research for every investor.” ―Stocks and Commodities

“A bible for investment strategies. . .” - Seeking Alpha