r&d - Trading Studio

Growth of $10,000 invested in the R&D Efficiency screen vs the S&P 500 from 2000 to 2024, ending at $27,246 against $66,167, with two distinct performance regimes split around 2013.

r&d

R&D Efficiency Backtest (US): 4.09% CAGR, Two Regimes, One Regime Shift

From 2000 to 2012, buying stocks with the highest gross profit per R&D dollar beat the S&P 500 consistently. Then mega-cap tech took over, and the strategy spent the next twelve years giving money back. 4.09% CAGR against 7.85% for SPY. 25-year backtest, full data, SQL included.

Growth of GBP 10,000 invested in the R&D Efficiency screen on the LSE from 2000 to 2024, ending at GBP 58,821 against GBP 13,561 for the FTSE 100 price index, a 7.34% CAGR against 1.23%.

uk stocks

R&D Efficiency Backtest (UK): 7.34% CAGR, +6.12% vs FTSE 100, -22% Max Drawdown

The UK R&D efficiency screen returned 7.34% CAGR over 25 years. The FTSE 100 price index returned 1.23%. That is +6.12% annual excess, the strongest result across 11 global markets, with a max drawdown of -21.74% against the index's -38.07%. Returns in GBP. The FTSE 100 is price-return only.

Growth of 10,000 rupees in the R&D Efficiency screen on the NSE, 2000 to 2024, ending at 48,247 rupees against 172,157 for the Sensex, a 6.50% CAGR against 12.06%, with 14 years in cash.

india stocks

R&D Efficiency Backtest (India/NSE): 6.50% CAGR vs Sensex 12.06%, 56% Cash

The R&D efficiency screen on NSE-only sits in cash for 56% of years. When invested it was volatile, with two spectacular years (2014 +59.81% against a Sensex up 8.14%, and 2023 +83.18% against 21.83%). The 25-year CAGR of 6.50% trails the Sensex's 12.06%. It doesn't beat the Indian market.

Horizontal bar chart comparing the R&D efficiency screen's CAGR across 11 exchanges, from the UK at 7.34% down to Korea at -1.52%, with the S&P 500 marked as a cross-market reference line.

global stocks

R&D Efficiency Across 11 Exchanges: UK Beats FTSE by +6.12%, India Trails Sensex

We reran the R&D efficiency screen across 11 exchanges with local benchmarks. The UK beats the FTSE 100 price index by +6.12% annually, the strongest result globally. India underperforms the Sensex by 5.27pp. And two positive results turn out to rest on foreign companies' secondary listings.