What Happens When a Wall Street Icon Meets Silicon Valley Data

Editor’s Note: The future of investing is data-driven; and two of the sharpest minds in the business are proving it.

Yesterday, Louis Navellier shared how he’s upgrading his famous Stock Grader system with advanced digital intelligence. Today, Andy Swan, cofounder of LikeFolio, is here to show how his team’s real-time social-data engine can predict market trends before they show up in earnings reports.

This collaboration between Louis, Andy, and his brother Landon has already pinpointed more than 240 “double-your-money” setups in backtesting. And on October 28 at 10 a.m. Eastern, they’ll reveal the system live.

Here’s Andy with a closer look at how it works – and what it could mean for your portfolio.

It’s amazing how much you can learn from spending the day with a fellow investor.

Especially when it’s someone who’s been doing it professionally for 45 years…

… whose quantitative system has topped the performance of the S&P 500 since 1997…

… someone whose investment firm manages around $1 billion in assets…

… whose mutual funds and ETFs have been ranked #1 by Morningstar and The Wall Street Journal…

…whom The New York Times has called “icon among growth investors”…

… who’s a regular guest on Bloomberg Television, Fox News, and CNBC.

As you’ve likely already guessed, that someone is Louis Navellier. And meeting him lit the fuse on an exciting new collaboration. 

Louis began programming computers that beat the market in the 1970s while still a student. And he launched his first newsletter in 1980, back when my brother Landon and I were still learning how to walk.

_{That’s me on the right beside Landon (in the middle). You know Louis, of course.}

He’s a living legend among quant investors like us – folks who rely on data, not guesswork, for their edge. That’s why they call him the “King of Quants.” He’s been doing this longer than anyone else we know.

And when he shared how he got into this business, it sparked a collaboration that led to our Ultimate Stock Strategy. It’s a rule-based system that, according to backtests, on average would have found a new stock every six trading days with the potential to double your money. 

I’ll get into the details in a moment – plus how you can learn more. First, let me share a little bit about how Louis blazed a trail for us quants. 

Louis Navellier’s Quantitative Stock Grading System

It all started with an assignment Louis got as a student.

He was studying finance at Cal State Hayward. One of his professors there had a consulting gig with Wells Fargo. He invited Louis to help him run some models using the bank’s mainframe.

Louis was tasked with building a model portfolio of 320 stocks that would track the returns of the 500 stocks in the S&P 500. 

Only his portfolio didn’t just mimic the performance of the index – it beat it.

It was the foundation of the Stock Grader system he uses today. It ranks more than 6,000 stocks based on sales growth, operating margin, earnings momentum, and other fundamental metrics. Then it combines this ranking with institutional buying and other catalysts. 

It all gets boiled down to a grade, just like you’d get in school:

• A stock with the highest growth and business quality ratings gets an “A.”
• A stock with miserable ratings gets an “F.” 

Since Louis started his first newsletter in 1980, this system has flagged 675 stocks that could have doubled your money or more – including 22 that shot up 100 times in value.

Louis proved that a rules-based system combining fundamental analysis and market flows could systematically beat the index. 

Landon and my breakthrough was proving that consumer behavior online could, too.