Low accruals = higher quality earnings (Sloan 1996 accruals anomaly)
Cash-flow-dominant earnings are more sustainable. Low accruals stocks outperform high accruals by ~10% annually across 17 countries
| Symbol | Action | Vol | Stop Loss | Take Profit | Size | Links |
|---|---|---|---|---|---|---|
| DGRW | BUY | 14% | 4.8% below entry | 3.0% above entry | 15.4% | TVYH |
| BRK-B | BUY | 18% | 6.1% below entry | 3.7% above entry | 12.2% | TVYH |
| JNJ | BUY | 18% | 6.1% below entry | 3.7% above entry | 12.1% | TVYH |
| PG | BUY | 18% | 6.4% below entry | 3.9% above entry | 11.7% | TVYH |
| KO | BUY | 16% | 5.7% below entry | 3.4% above entry | 13.1% | TVYH |
| QUAL | BUY | 16% | 5.5% below entry | 3.4% above entry | 13.5% | TVYH |
This strategy is suitable for passive investing. - Take profit: Rebalance when any position exceeds 2x its target weight. Trim back to target, redeploy to underweight positions. - Stop loss: NO price-based stop loss. This strategy recovered from 30% drawdown to deliver positive long-term returns. - Exit rule: Review annually. Exit if strategy underperforms its benchmark for 3 consecutive years.