ABSTRACT
We apply the Volume Price Confirmation Indicator to a simplified version of the Famous Stock Investor portfolios from the American Association of Individual Investors. Specifically, we use a streamlined portfolio known as Abriged Can Slim, alongside CAN SLIM, Joel Greenblatt, Benjamin Graham, and Warren Buffett methodologies. Our findings reveal that while each portfolio individually outperforms the S&P 500 since 1999, incorporating the Volume Price Confirmation Indicator enhances their returns on a risk-adjusted basis. The Volume Price Confirmation Indicator alone also surpasses the S&P 500 since 1999, independent of the Famous Investor methodologies.
Our analysis covers the period from 1999 to 2024, using the S&P 500 index to construct our portfolios. We present results for annualized return, total return over one, three, and five-year periods, as well as since inception. Additionally, we provide metrics such as R-squared, beta, and maximum drawdown. The implementation code is also included. These results offer valuable insights for student investment funds and portfolio managers, helping to bridge the gap between academic finance and practical investment strategies.
Keywords
Technical Analysis, Fundamental Analysis, Famous Investor Portfolios.