You want better than average returns—you want to beat the market. But the biggest myth in investing is that success comes from picking the right stocks at the right time. Even professionals fail at this. The truth? You do not need to predict the future to outperform. ALL the best investors follow a systematic, data-driven approach that removes emotions and focuses on proven factors like value, momentum, and shareholder yield. This article will show you how to build a market-beating portfolio using tested strategies and tools. Stop guessing. Start investing smarter.
Estimated Reading Time: 6 minutes
The Truth About Beating the Market
If you’re managing your own money, you don’t just want average returns—you want to beat the market.
That’s why you’re here. You’ve likely had a bad experience with a financial advisor or fund manager, and now you’re determined to do better on your own.
Here’s the problem: Most investors believe that market success comes from picking the right stocks at the right time. This is the Core Myth of Investing — the idea that you can beat the market by guessing which stocks will take off next.
The reality? Even professional fund managers fail to do this consistently.
The good news? You don’t need to predict the future to outperform the market. The best investors follow a rules-based, data-driven system that removes emotions and focuses on factors that actually work—like value, momentum, quality, and shareholder returns.
This guide will show you how to build a portfolio that can beat the market, step by step. Plus, I’ll introduce you to our Stock Screener, Quant Value Newsletter, and Shareholder Yield Letter, tools designed to help you invest smarter and with confidence.
Why Most Investors Fail to Beat the Market
The Truth About Market-Beating Returns
Most investors underperform because they make common mistakes. They chase hot stocks, trade too much, and buy based on emotions instead of facts.
The stock market rewards discipline and patience, but most investors react to short-term news and make bad decisions.
If you’ve ever bought a stock because everyone was talking about it, or sold too soon out of fear, you know how emotions can hurt your returns. The key to beating the market isn’t about making lucky picks—it’s about following a proven system that removes guesswork.
Why Stock Picking Doesn’t Work
Many people think investing success comes from picking the next Apple or Amazon before anyone else. The truth? Even most professionals fail at stock picking. Studies show that over time, most fund managers can’t even match the S&P 500, let alone beat it.
Instead of trying to guess which stock will be the next big winner, focus on a repeatable, proven investment strategy.
That’s where quant investing comes in. Our Quant Value Newsletter follows a rules-based approach that removes emotions and focuses on stocks that have the best chance of long-term success.
Click here to start your investment journey NOW!
The Three Core Principles of a Market-Beating Portfolio
Buy Undervalued, High-Quality Stocks
Beating the market starts with buying great companies at good prices. Many investors buy expensive stocks because they believe in the company. But even the best companies can be bad investments if you pay too much.
Instead, focus on:
✅ Value – Is the stock cheap based on earnings, book value, or cash flow?
✅ Quality – Is the company profitable, financially strong, and growing?
✅ Momentum – Is the stock trending higher for the right reasons?
Our Stock Screener helps you find stocks that meet these criteria in seconds, so you don’t have to guess.
Focus on Shareholder Yield (Not Just Dividends)
Many investors only look at dividends, but dividends are just one piece of the puzzle. A better way to measure shareholder returns is Shareholder Yield, which includes:
✔️ Dividends – Cash paid to shareholders.
✔️ Stock Buybacks – Companies reducing the number of shares, increasing your ownership.
✔️ Debt Reduction – Paying down debt to strengthen the company.
Stocks with high Shareholder Yield tend to outperform the market over time. You can read all the research on why it does here: The Power of Cash: How and why to implement a shareholder yield investment strategy 💰
Our Shareholder Yield Letter finds the best stocks based on this approach, helping you build a portfolio that rewards you with real returns.
Use a Rules-Based, Data-Driven Approach
The biggest mistake investors make is letting emotions drive their decisions. Fear and greed make people buy high and sell low. This is why you need a clear, rules-based system that tells you exactly when to buy and sell.
This article shows you exactly what you need to do: How to get started with Quant Investing
Our Quant Value Newsletter follows a backtested investment strategy that consistently finds undervalued stocks with high return potential. No emotions. No guesswork. Just data-driven decisions.
Click here to start your investment journey NOW!
How to Structure a Winning Stock Portfolio
How Many Stocks Should You Own?
If you own too many stocks, your returns will be too close to the market average. If you own too few, one bad pick can hurt your entire portfolio. So, what’s the right number?
For most investors, the sweet spot is 20-40 carefully chosen stocks. This gives you enough diversification to reduce risk but enough focus to beat the market.
How Much to Invest in Each Stock?
Many investors put too much money into one stock and panic if it drops. Others spread their money too thin, so even if they pick a winner, it doesn’t make a big impact.
A simple rule: No single stock should be more than 5-10% of your portfolio. Our screener and newsletters help you find high-quality stocks to build a strong, balanced portfolio.
How to Find Stocks That Can Beat the Market
The Right Way to Pick Stocks
Instead of guessing, use data-driven stock selection:
✅ Low Valuation – Buy stocks that are cheap compared to earnings, cash flow, or book value.
✅ High Quality – Look for strong profitability, low debt, and high returns on capital.
✅ Strong Momentum – Focus on stocks that are trending higher with strong earnings growth.
Use a Stock Screener to Automate the Process
Instead of spending hours researching, use our Stock Screener to filter stocks based on value, quality, and momentum. This helps you quickly find the best investment opportunities.
Get Pre-Screened High-Probability Stock Picks
Don’t want to spend time screening stocks yourself? Our Quant Value Newsletter gives you pre-selected stocks based on a backtested, market-beating strategy.
Managing Your Portfolio for Long-Term Success
When to Sell a Stock
Many investors hold on to bad stocks hoping they recover. Others sell good stocks too early out of fear. Both mistakes hurt your returns.
Instead, follow clear sell rules:
✅ Sell if the stock becomes too expensive.
✅ Sell if the company’s fundamentals weaken.
✅ Sell if there’s a better opportunity available.
Our Quant Value Newsletter tells you exactly when to sell so you never have to second-guess yourself.
Final Steps to Building a Market-Beating Portfolio
Use a Proven Strategy Instead of Guesswork
Investors who rely on luck don’t succeed long-term. Investors who follow a proven strategy do. The best investors follow a repeatable process that focuses on value, quality, and shareholder returns.
Get the Right Tools to Help You Succeed
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🚀 Use a Stock Screener to find the best market-beating stocks.
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📩 Get top-ranked small cap stock picks from our Quant Value Newsletter.
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💰 Discover high-yield and shareholder friendly large cap stocks with our Shareholder Yield Letter.
Conclusion: Start Building a Market-Beating Portfolio Today
Beating the market isn’t about luck or stock tips—it’s about following a proven, rules-based system. By focusing on undervalued, high-quality stocks and using data-driven tools, you can build a portfolio that outperforms the S&P 500.
Start using the right strategy and tools today—and invest with confidence!
Click here to start your investment journey NOW!
FREQUENTLY ASKED QUESTIONS
1. Can I really beat the market on my own?
Yes, but not by guessing which stocks will take off next. Most investors fail because they trade emotionally, chase trends, and lack a solid system. Beating the market is about following a proven, data-driven strategy that removes guesswork and emotion. Our Stock Screener and Newsletters help you do exactly that.
2. How do I avoid emotional investing mistakes?
Fear and greed make investors buy high and sell low. The best way to stay disciplined is to follow a rules-based system that tells you exactly when to buy and sell. Stop reacting to market noise and use backtested strategies to make investment decisions based on facts, not feelings.
3. Why should I stop picking stocks based on news and tips?
Stock tips and headlines lead to bad decisions. Even professional fund managers fail at stock picking over time. Instead, use a systematic approach focused on value, quality, and momentum—the same factors that have been proven to outperform the market.
4. How many stocks should I own for the best results?
Owning too few stocks is risky. Owning too many dilutes returns. The sweet spot is 20-40 well-chosen stocks. This gives you enough diversification to reduce risk but keeps your portfolio focused enough to outperform.
5. What is the best way to measure stock performance?
Most investors only look at stock price changes or dividends. A better metric is Shareholder Yield, which includes dividends and stock buybacks. Companies that return cash to investors this way tend to outperform. Our Shareholder Yield Letter finds these stocks for you.
6. When should I sell a stock?
Many investors hold onto losers too long or sell winners too early. Follow these rules instead:
✅ Sell if the stock becomes overvalued.
✅ Sell if company fundamentals weaken.
✅ Sell if you find a better opportunity.
Our Newsletters give you clear sell signals so you never have to second-guess yourself.
7. What is the fastest way to find market-beating stocks?
Researching stocks one by one takes too much time. The solution is to use a Stock Screener that filters stocks based on the factors that matter: low valuation, high quality, and strong momentum. Our screener does this for you in seconds, saving you days of research.
