“If we buy the past losers and sell the past winners and hold them for another three years, then what we see is that there is a reversal.”

Alex Edmans · The Rational Reminder Podcast · The Madness of Markets (Alex Edmans)

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What was described

Rank all stocks by total return over the past three years, buy the bottom decile (past losers) and short or sell the top decile (past winners), then hold the positions for another three years

reversal observed; past losers become winners and past winners become losers over the 3-year holding period

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