Prior to completing this assignment, read Chapter 13 in the Dhandho Investor, Lawrence Cunningham’s Initiative on Quality Shareholders Highlights Download Initiative on Quality Shareholders Highlights, and Jason Gordon’s Total Shareholder Return – Explained Links to an external site..
Cunningham (2020) “compared two portfolios over the study period (2014–2018): one comprised of the 25 companies attracting the highest density of QSs [Quality Shareholders] and the other of the 25 attracting the lowest density of QS. The high QS density portfolio outperformed the low QS density portfolio in each of those five years” based on cumulative return data for the five-year period (p. 33).
Choose one company from the list of quality shareholder (QS) attractors in the article.
In your paper,
Explain eight successful corporate policies or practices that 3M company uses as a QS attractor.
Cite examples from 3M company using the Introduction to APA Links to an external site. guidelines.
Compare the company’s capital allocation strategy to the Dhandho principle of low-risk, high-return approach.
Cite examples using APA Style Links to an external site..
Calculate the cumulative shareholder return for your chosen company for the period 2014–2018.
Compare the cumulative return you calculated for your chosen company to the cumulative return on two major stock indices for the period 2014–2018.
Compare the evidence of the investment performance exhibited by quality shareholders to other active management investment strategies.
Provide two additional sources in your comparison.
The Quality Shareholders paper,
Must be five to seven double-spaced pages in length (not including title and references pages) and formatted according to APA Style