This subjectivity, to a certain extent, forms the basis of all but one of our Foolish strategies. Here, no pondering is needed over a company's products and its competitiveness within its industry. Nor is there any poring over accounts. In fact, proponents of mechanical strategies would probably tell you that the less you know about the companies, the better. All that's needed is a grasp of basic investment valuation ratios and statistics in general.
Mechanical strategies are very clear cut in their operation.
There are no ifs, buts or maybes involved. One year later, you sell the lot and follow the same procedure, reinvesting in the companies that exhibit the predefined criteria. Then click here . The type of company this Foolish real money portfolio searches for is one with a proven and superior financial record, whose business and products lead to a relatively predictable future and whose share price is attractive. The trouble with such enticing companies is that they are few and far between, and the ones that do exist are rarely attractively valued.