The goal of the Global Sales Weighted Indexes™ is to invest in the largest and most successful sales leaders from around the world. We believe sales is the most consistent economic metric to measure a company’s potential as an investment strategy. We believe sales is a better way to measure companies because:
- Sales is a number that all companies report which reflects a company’s growth.
- It is a core strategy with the potential for excess return.
- Using sales as a metric breaks the link between portfolio weight and stock price. A criticism of traditional market cap investing is that it over weights overpriced securities and under weights underpriced securities.
In the chart to the right, annualized Sales returns outperformed both fundamental composite and market cap annualized returns from 1969-2011. This demonstrates a sales-weighted index’s potential for excess return over time.
(1)www.cassknowledge.com, An evalution of alternative equity indices. Part 2: Fundamental weighting schemes. Andrew Clare, Nick Motson and Steve Thomas, March 2013
Annualized Returns 1969-20111
