equity growth
We backtested the Compounding Equity Screen on London Stock Exchange stocks from 2000 to 2025. 10.02% CAGR vs 7.83% for the S&P 500, with only 4.7% down capture. During the 2008 financial crisis, UK equity compounders returned +4.4% while SPY fell 26%.
equity growth
We backtested the Compounding Equity Screen on BSE+NSE stocks from 2000 to 2025. 6.48% CAGR vs 7.83% for the S&P 500. The strategy underperforms slightly but shows 6.7% down capture — when the 2008 financial crisis hit, Indian equity compounders returned +2.09%.
equity growth
We backtested the Compounding Equity Screen across 14 exchanges worldwide from 2000 to 2025. One exchange outperformed the S&P 500. Twelve underperformed. One was sharply negative. The results reveal why equity compounding works in some markets and fails in others.
equity growth
We backtested the Compounding Equity Screen on XETRA stocks from 2000 to 2025. 4.44% CAGR vs 7.83% for the S&P 500. Germany was the weakest of the five major markets tested, with only 8 of 25 years beating the benchmark. Here is why equity compounding struggles in the German market.
equity growth
We backtested the Compounding Equity Screen on TSX stocks from 2000 to 2025. The portfolio returned 6.82% annually vs 7.83% for the S&P 500. That -1.01% annual gap is the smallest shortfall of any market tested. Canada came closest to matching the benchmark across all
value investing
Eight of 15 exchanges beat the S&P 500 over 25 years using a Price-to-Tangible-Book strategy. The split isn't random. Tangible book works where physical and financial assets are the primary value driver: manufacturing, banking, energy, materials. It struggles where intangibles dominate: tech-heavy markets, pharma-heavy markets, conglomerate
backtests
Price-to-Tangible-Book strips goodwill and intangibles from the valuation, leaving only what a company physically owns. Backtested on US large-caps from 2000-2025, the strategy returned 10.03% CAGR versus 7.83% for SPY, with a down-capture ratio of just 10.71%.
value-investing
The P/TBV strategy on the London Stock Exchange returned 9.61% annualised over 25 years against SPY's 7.83%, with a maximum drawdown of only -31.25%. The lowest of any outperforming exchange we tested.
value investing
Swedish industrial companies, sorted by the ratio of market cap to tangible book value, returned 8.97% annually from 2000 to 2024, beating the S&P 500 by 1.14 percentage points. The strategy spent four years in cash at the start, which accidentally sidestepped the dot-com crash, and
backtests
India's listed companies are built on physical capital: steel, cement, chemicals, engineering. A P/TBV screen on BSE/NSE large-caps returned 15.92% CAGR over 25 years versus 7.83% for SPY, with a down-capture of -9.57%, meaning the strategy gained when SPY fell.
value-investing
The P/TBV strategy on Germany's XETRA returned 8.83% annualised over 25 years with a down capture of -22.69%. When SPY falls, these stocks don't just hold — they rise. In 2007 SPY dropped 13.71% while the portfolio gained 1.19%.
value-investing
The P/TBV strategy on China's Shenzhen and Shanghai exchanges returned 9.71% annualised over 25 years with a beta of 0.113 and a down capture of -67.38%. In 2008, SPY lost 26%. This portfolio gained 46%.