US5978778A
Expired / Lapsed
US
⏱️ 0.0 years remaining
Automated strategies for investment management
Assignee: Netfolio Inc
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Filing: 1997-12-20
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Granted: 1999-11-02
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Expires: 2017-12-20
Abstract
Abstract The invention is in the field of using a computer to select corporate stocks for investment. Fifty stocks are selected from a database on the basis of certain criteria. The stocks are acquired in equal proportions, and the portfolio is rebalanced at the end of an annual term. A method of the present invention uses either a growth strategy, a value strategy, or both strategies. Growth Model 3 strategy selects the stocks with the best 1-year price performance from All Stocks (stocks with market capitalization more than $150 million) with earnings gains for five consecutive years that also have price-to-sales ratios below 1.5. Value Model 3 strategy selects market leading stocks with the highest dividend yields (excluding utilities so they do not dominate the list). Market leading stocks come from the Large Stocks Universe and have: more common shares outstanding than the average stock in the database, cashflows per share exceeding the database mean, and corporate sales that are 1.5 times the database mean. A stock portfolio may be constructed which uses both Growth Model 3 and Value Model 3 in chosen proportion to one another. At the end of an annual term, the amount of money generated by the two strategies is pooled and then re-invested in accordance with the chosen proportion (which may change over time).
Inventors
- 👤 James P. O'Shaughnessy
Bibliographic Details
Application Number
—
Jurisdiction
US
Data Source
google_patents
Last Synchronized
2026-11-09 17:44
CPC Classifications
G; G06; G06Q; G06Q40/00; G06Q40/06; G06Q40/04
Claims Analysis
Total Claims: 23
Claim 1
Independent Claim
123 words
A method for carrying out computerized selection of stocks for an investment portfolio comprising the steps of: (a) accessing a database of stock information with a computer; (b) selecting stocks for an investment portfolio based on information in said database meeting certain criteria; wherein said criteria include selecting stocks of companies with database records indicating: (i) market capitalization in excess of $150,000,000; (ii) price-to-sales ratios lower than 1.5; and (iii) annual earnings that are higher than the previous year's annual earnings; (c) sorting records identifying the stocks which meet said criteria in descending order of one year appreciation in stock price into a sorted list; and (d) making available from the top of said sorted list a listing of a number of stocks.
Claim 2
Independent Claim
123 words
A method for carrying out computerized selection of stocks for an investment portfolio comprising the steps of: (a) accessing a database of stock information with a computer; (b) selecting stocks for an investment portfolio based on information in said database meeting certain criteria; wherein said criteria include selecting stocks of companies with database records indicating: (i) market capitalization in excess of $150,000,000; (ii) price-to-sales ratios lower than 1.5; and (iii) annual earnings that are higher than the previous year's annual earnings; (c) sorting records identifying the stocks which meet said criteria in descending order of one year appreciation in stock price into a sorted list; and (d) making available from the top of said sorted list a listing of a number of stocks.
Claim 3
Dependent Claim
29 words
A method for carrying out computerizd selection of stocks as in claim 1 wherein the database is one from the group of Value Line, S&P Compustat, and AAII Stockpac.
Claim 4
Dependent Claim
22 words
A method for carrying out computerized selection of stocks as in claim 1 wherein the number of stocks listed is fifty stocks.
Claim 5
Dependent Claim
11 words
A computer programmed to carry out the steps of claim 1.
Claim 6
Dependent Claim
36 words
A computer-readable medium having imprinted therein a computer program containing instruction steps such that upon installation of said computer program in a general purpose computer, the computer is capable of performing the method of claim 1.
Claim 7
Independent Claim
140 words
A method for carrying out computerized selection of stocks for an investment portfolio comprising the steps of: (a) accessing a database of stock information with a computer; (b) selecting stocks for an investment portfolio based on information in said database meeting certain criteria; wherein said criteria includes market leaders with the highest dividend yields; wherein market leaders are stocks of companies that are not utilities and that have (i) a market capitalization in excess of $150,000,000 (ii) more common shares outstanding than the average stock in the database (iii) cashflows per share exceeding the database mean; and (iv) sales that are 1.5 times the database mean; (c) sorting records identifying said market leaders in descending order by dividend yield into a sorted list; (d) making available from the top of said sorted list a listing of a number of stocks.
Claim 8
Independent Claim
140 words
A method for carrying out computerized selection of stocks for an investment portfolio comprising the steps of: (a) accessing a database of stock information with a computer; (b) selecting stocks for an investment portfolio based on information in said database meeting certain criteria; wherein said criteria includes market leaders with the highest dividend yields; wherein market leaders are stocks of companies that are not utilities and that have (i) a market capitalization in excess of $150,000,000 (ii) more common shares outstanding than the average stock in the database (iii) cashflows per share exceeding the database mean; and (iv) sales that are 1.5 times the database mean; (c) sorting records identifying said market leaders in descending order by dividend yield into a sorted list; (d) making available from the top of said sorted list a listing of a number of stocks.
Claim 9
Dependent Claim
29 words
A method for carrying out computerized selection of stocks as in claim 6 wherein the database is one from the group of Value Line, S&P Compustat, and AAII Stockpac.
Claim 10
Dependent Claim
22 words
A method or carrying out computerized selection of stocks as in claim 6 wherein the number of stocks listed is fifty stocks.
Claim 11
Dependent Claim
11 words
A computer programmed to carry out the steps of claim 6.
Claim 12
Dependent Claim
36 words
A computer-readable medium having imprinted therein a computer program containing instruction steps such that upon installation of said computer program in a general purpose computer, the computer is capable of performing the method of claim 6.
Claim 13
Independent Claim
304 words
A method for carrying out computerized selection of stocks for an investment portfolio comprising the steps of: (a) selecting stocks for an investment portfolio in accordance with a first strategy; (b) selecting stocks for an investment portfolio in accordance with a second strategy; (c) said first strategy comprising the steps of (c.1) accessing a database of stock information with a computer; (c.2) selecting stocks for an investment portfolio based on information in said database meeting certain criteria; wherein said criteria include selecting stocks of companies with database records indicating: (c.2.a) market capitalization in excess of a desired capital amount; (c.2.b) price-to-sales ratios lower than a desired amount; and (c.2.c) annual earnings that are higher than the previous year's annual earnings; (c.3) sorting the stocks which meet said criteria by the highest one year appreciation in stock price into a sorted list; and (c.4) making available from the top of said sorted list a first listing of a number of stocks; (d) said second strategy comprising the steps of (d.1) accessing a database of stock information with a computer; (d.2) selecting stocks for an investment portfolio based on information in said database meeting certain second criteria; wherein said second criteria includes market leaders with the highest dividend yields; wherein market leaders are stocks of companies that are not utilities and that have (i) a market capitalization in excess of a desired capital amount (ii) more common shares outstanding than the average stock in the database (iii) cashflows per share exceeding the database mean and (iv) sales that are 1.5 times the database mean; wherein market leaders exclude stocks of utility companies; (d.3) sorting said market leaders by highest dividend yield into a second sorted list; (d.4) making available from the top of said second sorted list a second listing of a second number of stocks.
Claim 14
Independent Claim
304 words
A method for carrying out computerized selection of stocks for an investment portfolio comprising the steps of: (a) selecting stocks for an investment portfolio in accordance with a first strategy; (b) selecting stocks for an investment portfolio in accordance with a second strategy; (c) said first strategy comprising the steps of (c.1) accessing a database of stock information with a computer; (c.2) selecting stocks for an investment portfolio based on information in said database meeting certain criteria; wherein said criteria include selecting stocks of companies with database records indicating: (c.2.a) market capitalization in excess of a desired capital amount; (c.2.b) price-to-sales ratios lower than a desired amount; and (c.2.c) annual earnings that are higher than the previous year's annual earnings; (c.3) sorting the stocks which meet said criteria by the highest one year appreciation in stock price into a sorted list; and (c.4) making available from the top of said sorted list a first listing of a number of stocks; (d) said second strategy comprising the steps of (d.1) accessing a database of stock information with a computer; (d.2) selecting stocks for an investment portfolio based on information in said database meeting certain second criteria; wherein said second criteria includes market leaders with the highest dividend yields; wherein market leaders are stocks of companies that are not utilities and that have (i) a market capitalization in excess of a desired capital amount (ii) more common shares outstanding than the average stock in the database (iii) cashflows per share exceeding the database mean and (iv) sales that are 1.5 times the database mean; wherein market leaders exclude stocks of utility companies; (d.3) sorting said market leaders by highest dividend yield into a second sorted list; (d.4) making available from the top of said second sorted list a second listing of a second number of stocks.
Claim 15
Dependent Claim
33 words
A method of carrying out a computerized selection of stocks for investment as in claim 11 wherein said method further includes purchasing stocks in accordance with said first strategy and said second strategy.
Claim 16
Dependent Claim
69 words
A method of carrying out a computerized selection of stocks for investment as in claim 12: (a) purchasing a first set of first number stocks from said first listing investing an equal first amount in each stock; (b) purchasing a second set of second number stocks from said second listing investing an equal first amount in each stock; (c) said first amount being not less than said second amount.
Claim 17
Dependent Claim
68 words
A method of carrying out a computerized selection of stocks for investment as in claim 12: (a) purchasing a first set of first number stocks from said first listing investing an equal first amount in each stock; (b) purchasing a second set of second number stocks from said second listing investing an equal first amount in each stock; (c) said first amount being less than said second amount.
Claim 18
Dependent Claim
85 words
A method of investing in stocks comprising the steps of (a) performing a computerized selection of stocks for investment as in claim 11; (b) purchasing a first equal dollar amount of each stock in said first listing, thereby creating a balanced portfolio; (c) purchasing a second equal dollar amount of each stock in said second listing, thereby creating a balanced portfolio; (d) retaining all of said stocks for a period of one year; (e) liquidating and rebalancing the portfolio at the end of said period.
Claim 19
Dependent Claim
57 words
A method of rebalancing a portfolio of stocks, wherein (a) stocks are purchased in accordance with the steps of claim 15; (b) the stocks existing portfolio is compared with the proposed stocks for the new portfolio by the computer; (c) generating purchase and sell orders to minimize unnecessary liquidation and reacquisition of stocks in the existing portfolio.
Claim 20
Dependent Claim
11 words
A computer programmed to carry out the steps of claim 15.
Claim 21
Dependent Claim
36 words
A computer-readable medium having imprinted thereon a computer program containing instruction steps such that upon installation of said computer program in a general purpose computer, the computer is capable of performing the method of claim 15.
Claim 22
Dependent Claim
11 words
A computer programmed to carry out the steps of claim 11.
Claim 23
Dependent Claim
36 words
A computer-readable medium having imprinted thereon a computer program containing instruction steps such that upon installation of said computer program in a general purpose computer, the computer is capable of performing the method of claim 11.
References Cited (Backward Citations)
US5297032A
Cited
USPTO Annuity & Maintenance Windows
| Annuity Stage | Window Opens | Payment Deadline | Surcharge Period Until | Estimated Fee | Status |
|---|---|---|---|---|---|
| 3.5 Years (Year 4) | 2002-11-01 | 2003-05-03 | 2003-11-02 | $2000.00 | Window Closed / Lapsed |
| 7.5 Years (Year 8) | 2006-11-01 | 2007-05-03 | 2007-11-02 | $3760.00 | Window Closed / Lapsed |
| 11.5 Years (Year 12) | 2010-11-01 | 2011-05-03 | 2011-11-02 | $7700.00 | Window Closed / Lapsed |