Liberty Times launches Charles Blandi’s value stock selection method, combined with Taiwan stock backtest analysis

Liberty Times' "Wealth Freedom" channel cooperates with Taiwan Economic News to select [Investment Master Stock Selection - Value Stock Selection Expert] to make your investment and financial management easier!

[Financial Channel/Comprehensive Report] Liberty Times' "Wealth Freedom" channel cooperates with Taiwan Economic News (https://www.tejwin.com) to launch "Master Stock Selection" from now on. Based on the stock selection logic and principles of European and American investment masters, it is applied to Taiwan stocks to select the latest investment targets for readers' reference. Today, Charles Brandy's value stock selection method is launched.

Charles Brandes is a protégé of Benjamin Graham. Since founding Brandes Investment Partners in 1974, he has grown assets under management from US$130 million to more than US$75 billion. Its Brandes Global Equity Fund has an annualized return of 17.91% over the past 20 years, significantly ahead of the MSCI World Index, and has been recognized by Morningstar Five Stars and multiple international awards. Another of his representative works, AGF International Value Fund, also shows excellent long-term performance, and Brandi himself has been ranked first among the world's top fund managers.

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Brandi adheres to the essence of value investing and opposes using future forecast data as a basis for stock selection. He emphasizes the "margin of safety" and the true value of the company as the core, and the principle of medium- and long-term holding. In order to faithfully restore its investment philosophy, this study quantifies its concept, uses the company's net value to replace the traditional discount model, and builds a backtesting structure to test the strategy's performance in historical market conditions. This article will introduce the data processing process, backtest design and performance analysis respectively, hoping to show the feasibility and robustness of Brandi value investment under the quantitative framework.

Margin of Safety: refers to the protection space that exists when the intrinsic value of an asset is higher than the market price. This concept emphasizes that even if there are adverse changes in operating or market conditions in the future, the risk of loss can still be reduced because the price at the time of purchase is cheap enough.

This study takes all listed OTC companies listed on the Taiwan Stock Exchange and OTC Trading Center as investment targets, collects basic information such as stock prices, financial statements, and shareholdings of directors and supervisors during the ten years since 2013, and completes data cleaning and integration. Since the strategy logic needs to reference the financial information of the last five years, the actual backtest period is set from January 1, 2020 to April 21, 2025. Only qualified samples will be simulated with historical performance to ensure data integrity and the rigor of strategy testing. For readers’ investment reference only.

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