Synthetic growth stocks

Wai Mun Fong ()
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Wai Mun Fong: National University of Singapore

Journal of Asset Management, 2018, vol. 19, issue 3, No 3, 162-168

Abstract: Abstract Drawing from the insights of the clean surplus accounting model for stock prices, we show that combining stocks with high profitability and low-BM ratios results in a “good growth” portfolio that outperforms classical growth stocks in multiple dimensions. The proposed portfolio offers growth-style investors a much more compelling alternative to classical growth stocks which are synonymous with poor returns relative to value stocks.

Keywords: Dividend discount model; Clean surplus accounting; Growth stocks; Gross profitability (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1057/s41260-017-0070-7

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