Professor Tom Scott of Sweet Briar College has compiled the results for the first month of our test.

If you will recall, the students in Professor Scott's "Principles of Investing" class created five "naked strategies" or rules-based methods and produced a portfolio based on empirical research. Each of these models is purely mechanical. There's no human judgment involved. You simply apply the rules to determine the stocks in each portfolio.

Obviously, we cannot draw conclusions after just one month, but according to Professor Scott, four of the models did indeed outperform the S&P 500, and only one trailed the Index in the first month. By the end of the year, we'll have a total of 60 data points (five models and twelve months) and may be able to draw some inferences based on the results.

You can go to Professor Scott's website and see the results for yourself for month #1. You'll also see the stocks the students' models identified for February.

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Labels: Sweet Briar