The results of the wRatings System has shown consistent performance over the past 10 years, just what investors would expect from the only system that ranks close to 5,000 companies by competitive strength. The W Ratings are similar to the hotel industry's five-star rating system, with tiers of stocks ranked in each level on a weekly basis. We continually backtest our algorithms to show the power of tracking competitive strength.

We benchmark against the S&P 500 and NASDAQ, with the chart below showing performance at various time intervals. Whether at the 10-year, 5-year, 3-year or YTD (Year-To-Date), the tiers have performed closely in accordance with their competitive strength, with the 5Ws outpacing S&P 500 the most and the 1Ws the least. The stock performance data here excludes all dividends or commissions and assumes a quarterly re-balancing of each tier on the first of a calendar quarter.
If you invested using equal dollar distributions across all 5W stocks (green bar) in every quarter since 1999, your investment increased by 880% through October 1, 2009 whereas the S&P500 and NASDAQ both decreased by 18% and 46%, respectively. This elite tier ranges from 23 stocks at its lowest in Q4-2006 to 101 stocks in Q2-1999.

In Q3-2009, the 5W tier contains 51 stocks that represent the best opportunity for price appreciation in the coming quarter. These best of the best companies possess the most competititive strength when compared to all other rivals (almost 5,000 stocks). They are both meeting customer expectations and generating economic profit through their far superior business frameworks.

This analysis proves that the wRatings System works in a variety of market conditions that we've experienced over the past decade. If you'd like to test our data for inclusion in your investment models, please contact us at members@wratings.com or 1.703.788.6532.