Forwardcaster is a New Zealand-based company with a global outlook. We offer investors access to our cloud-based back-testing engine so they can build and test their own long-term stock market strategies.
Our investment philosophy is to merge the probabilities and statistics used by quants (e.g. as applied by investment guru Ed Thorp) with the fundamental approaches to value investing as practiced by Warren Buffett and other leading value investors. For those interested, please read: Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioural Errors.
Investing is fraught with complexity and uncertainty. It is articulated in numbers, but results in strong emotions. This situation gives rise to a range of behavioural biases, leading to poor returns. Some investors suffer from ‘paralysis by analysis’ while others rely on their ‘gut’.
An investment strategy helps an investor think clearly. It cuts through the noise of the market and allows you to monitor your portfolio as a whole. It is not about finding the next winning stock but about creating a robust strategy within your tollerance for risk.
Following a well-tested strategy helps to remove the emotion from investing and provides a rational basis for improved performance.