Style of Picks

Quality strategy

Accruals Anomaly

Favour cash-backed earnings and avoid high-accrual, low-quality earnings — because the accrual portion of profit is the part most likely to reverse.

~1 year per holding; recheck every reporting cycleIntermediate

Richard Sloan — “Do Stock Prices Fully Reflect Information in Accruals and Cash Flows about Future Earnings?”, The Accounting Review (1996)