Close

Foolish Small Cap 8 Revised Screen

Performance

  Foolish Small Cap 8 Revised S&P 500
YTD Return: -2.1% 9.2%
Five Year Return: 2.8% 14.3%
Ten Year Return: 6.5% 6%
Inception: 14.3% 4.4%
Data as of 10/31/2014
The Foolish Small Cap 8 Revised Screen represents AAII's interpretation of the investment approach and is not determined by the original strategist. The list of passing companies represents a hypothetical portfolio, which is used to track the screen’s performance on a chart.

Passing Companies

AAII Stock Screens are an AAII member benefit. To view the contents of this page, please login. If you are not an AAII Member, JOIN TODAY.

Screening Criteria

AAII Stock Screens are an AAII member benefit. To view the contents of this page, please login. If you are not an AAII Member, JOIN TODAY.

Chart

AAII Stock Screens are an AAII member benefit. To view the contents of this page, please login. If you are not an AAII Member, JOIN TODAY.

Historically, small-capitalization companies have outperformed larger companies—even considering any additional risk that smaller companies exhibit. For this reason, they have long captured the attention of investors looking for tomorrow's market heavyweights. With thousands of small caps to choose from, the process of finding the most promising small firms that warrant further research is a daunting task.

This is where stock screening can alleviate some of the burden, by allowing you to winnow the universe of stocks down to a manageable group that you can then analyze more closely.

A methodology for screening for small stocks was developed by David and Tom Gardner, founders of the Motley Fool. Called the Foolish 8, their strategy uses eight criteria to look for profitable and rapidly growing small companies with strong price momentum. It's partly based upon the premise that the lack of coverage and interest in small-cap companies presents a better opportunity to locate undiscovered, attractive investment candidates.

The original Foolish Small Cap 8 screen was designed to flag potential growth companies based upon a combination of market- and business-related factors. Recently, a revised version of the screen added elements of valuation and management effectiveness and relaxed the small-cap criteria.

To read more, please become an AAII member or login.