Edward Croft
- Joined 14 Sept 2009
- 1,989 comments
- 235 posts
Biography
I'm Ed Croft, Co-Founder and CEO of Stockopedia. Like a lot of investors, I learned the hard way that too much conviction and overconfidence can come back to bite you in the markets. So I went looking for a better approach — and found it in the academic evidence on rules-based investing.
That conviction is what drives the development and ethos of Stockopedia. Everything here is built with one aim: helping you take the research-backed route to investment success. Picking better stocks with the power of the StockRanks — Quality, Value, and Momentum. Making your research more effective, more efficient, and honestly, more enjoyable. And creating a space where we all keep levelling up as investors.
That’s what I write about here. I hope you find it useful.
Investment strategy
Rules- based. I'm a huge believer in the power of rules-based investing to dramatically improve long-term outcomes in stock markets. The investment industry often doesn't have the individual's best interests at heart. So self-directed investing really is the way forward. But if you're going to be self-directed, you have to learn to manage your monkey mind. Otherwise, we end up making all kinds of mistakes due to behavioural biases: FOMO, overconfidence, overtrading, overattachment, loss aversion, and more.
I have a simple framework I call the 3D investment framework, and it guides everything I do.
- Exposure to return drivers (like quality, value, and momentum)
- Diversification for resilience (not just to reduce risk but also to increase your chances of owning the big winners). 20 stocks is adequate, but more focused portfolios can do very well given enough attention
- Maintaining your discipline (which essentially means having rules for entry and exit). Whether on a schedule or using thresholds.
There's too much to go into here, but I write a lot about the NAPS investment process on the site and share a lot of research findings into more active approaches, too. These generally guide my own investment choices as an individual and in managing investments for my family.