Should I make investment decisions solely with EPSG Heavyweights data?
No… you should never use use just one metric or data source when making important investment decisions.
We do however feel strongly that a company’s ability to consistently grow earnings is an important consideration for the long term self directed investor who does not have the time to trade in and out of stocks. We hope the EPSG Heavyweights ranking system will make it easier for you to find these companies.
A basket of stocks across multiple sectors with the ability to to consistently grow their earnings will help you sleep better at night. Sure some businesses may struggle and bear markets happen but EPSG Heavyweights should put you on the right side of the trend lines.
When you are confident that you own great businesses you should not be be disappointed on down days. Unless you feel there has been a significant change to the business you should be excited that the market is giving you a buying opportunity. So keep some cash for a sale. Dollar cost averaging over the long term in stocks that grow earnings is also a great strategy.
There are other lists that track dividend growth history which we would encourage you to also follow. If you combine EPS growth with dividend growth you may also be able to lock in an unusually high yield that pays you while you wait. All the math at this point will be working in your favor.
Warren Buffett famously says the stock market is the only place that has a sale and no one shows up. The EPS growth data provided on this website is intended to be one of the tools you can use to give you the confidence “to be greedy when others are fearful” (also Warren Buffet).
Some companies and sectors may not be able to achieve heavyweight status due to the cyclical nature of there business. You do not have to completely avoid these sectors in a balanced portfolio but you may need to use other indicators.
The old saying is past results are no indication of future performance which is true but owning a a diversified basket companies with a long track record of growing EPS sure does put the odds in your favor.
We sincerely hope you will be able to use our data to build a portfolio that does not keep you up at night.