Quality Shareholders

[WLOs: 3, 4] [CLOs: 3, 4, 6]

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 – ExplainedLinks 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 your chosen company uses as a QS attractor.
  • Compare a company’s capital allocation strategy to the Dhandho principle of low-risk, high-return approach.
  • 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,

Carefully review the Grading RubricLinks to an external site. for the criteria that will be used to evaluate your assignment.

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