Big Returns for Bogle Small Cap Growth

published 1 July 2013

Many stock pickers are tire kickers. They make judgments about companies by, among other things, talking to executives, competitors and customers. By contrast, quants (short for quantitative analysts) are computer jocks. They try to take the emotion out of investing by relying on computers to rank stocks for buying and selling.

Grand Opportunities for Small-Cap Stock Investors

Bogle’s model homes in on U.S. companies that are likely to beat analysts’ earnings estimates. It also contains a value component, identifying stocks that are cheap relative to others in their industry on the basis of price-to-sales and price-to-cash-flow ratios. Bogle buys roughly the top 150 ranked stocks, making sure to keep his fund’s sector weightings closely in line with those of the Russell 2000 index.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Topics

Fund Watch

Tan joined Kiplinger in June 2012 from Bloomberg News, where she was a reporting intern covering mergers and acquisitions and IPOs in New York. Prior to that, she worked as a production intern at CNN in Washington, D.C., where she assisted with political research and live broadcasts. She also covered financial regulation, including the Dodd-Frank Act, as a reporter for the Medill News Service. Before that, she wrote about economics and commodities in Chicago. She has written for the New York Times, MarketWatch, Businessweek.com, United Press International and the San Francisco Chronicle. She holds a BBA in finance from the University of Michigan and an MS in journalism from Northwestern University.