In this series, we’ve asked Covestor managers: “What is the single most important lesson you’ve learned about being a successful investor, and how do you try to apply that today?”

Author: Richard Moore

Covestor model: Market Comparables

After many years of investing using conventional techniques and strategies, I found that Wall Street research on widely followed companies was not particularly helpful toward building a strong investment strategy.

Then I read a book entitled What Works on Wall Street by James P. O'Shaughnessy. That book changed my whole approach to investing. I realized that I needed to focus on those factors that were really important, and in an unemotional manner.

I began focusing on smaller companies that were not well followed by Wall Street. I specifically looked for companies that had low valuation compared to other companies in the same industry and also had strong stock price momentum characteristics.

I started using various screening techniques to pick attractive investment opportunities and was pleased with the results. I continue to update and revise my screening techniques as time goes on and I gain additional experience.