Back to the Future Portfolios: A Forward Looking Approach to Stock Selection, Portfolio Construction, Risk and Return

Built upon the work of Markowitz, Sharpe and others, but instead of using historical data and risk assessments, we provide a set of forward looking tools for the investor that believes in fundamentals driving long term stock prices. We revisit the wisdom from the father of MPT that an investor should be concerned about marginal returns and risks when added to an existing portfolio. We show how to construct these portfolios from scratch using any style of preference from high dividend portfolios to large cap growth, or ETFs. Our readers know that mutual funds, net of fees, historically underperform. ETFs, albeit with lower fees, may also underperform. Our readers are likely to want to construct their own portfolios of holding only 10 to 30 stocks at any one time, and they will also consider the tax consequence of short term trading. We show how to pick the best subset from within an ETF universe or from any given set of indices (S&P 500, NASDAQ 100, Dow Jones, etc.) thereby cutting out the mediocre prospects and usually beating the overall performance of those that buy all stocks in an ETF or the market as a whole. This book is not for the short term trader or gambler who bought DJT or placed large bets in Crypto, but rather the long term investor. Our methods beat appropriate indices 80% of the time and can match market returns with less than average risk. This book explains the basics behind https://www.forwardportfolio.com/ aimed at investment managers and more sophisticated investors. If you ever wondered about modern portfolio theory using forward looking metrics and forecasts then you will find our succinct lessons extremely valuable.