equity growth
We backtested the Compounding Equity Screen on TSX stocks from 2000 to 2025. 6.84% CAGR vs 3.95% for the TSX Composite, a +2.89% annual excess. Strong outperformance in the first decade and in recovery years (2009, 2010, 2020), with a severe 2008 drawdown of -39.9%.
equity growth
We backtested the Compounding Equity Screen across 14 exchanges worldwide from 2000 to 2025. Five markets outperform their local benchmarks (UK, Switzerland, Sweden, Canada, Japan). Only the UK also beats the S&P 500. The results reveal where equity compounding works and where it doesn't.
equity growth
We backtested the Compounding Equity Screen on XETRA stocks from 2000 to 2025. 4.54% CAGR vs 5.04% for the DAX. Only -0.50% annual shortfall against the local benchmark, with 36% down capture and a 48% win rate. Germany is closer to benchmark than it looked vs SPY.
equity growth
We backtested the Compounding Equity Screen on NSE stocks from 2000 to 2025. 5.14% CAGR vs 12.06% for the Sensex. The strategy underperforms the local benchmark by 6.92% annually, with 8 of 25 years in cash missing India''s strongest bull market.
equity growth
We backtested the Compounding Equity Screen on London Stock Exchange stocks from 2000 to 2025. 9.24% CAGR vs 1.23% for the FTSE 100, with 29.2% down capture. During the 2008 financial crisis, the portfolio fell 14% while the FTSE fell 22%.
equity growth
We ran the Compounding Equity Screen on all US exchanges from 2000 to 2025. 5.68% CAGR vs 7.85% for the S&P 500. The strategy underperforms by 2.18% annually. In 2023, it returned -4.3% while SPY gained 25.4%. Here is what the data shows and why it happens.