I’m a big fan of the Toyota Production System. I was thinking that I should find a mutual fund that invests in lean companies, but I couldn’t find one. I searched for “best lean companies” to see if I could get a list, and found Who Are the Best Lean Companies at leanblog.org, a blog I read every day.
I took all of the companies in the top 10 for whom I could find historical data. I compared buying one share of each of those companies to buying one “share” of the S&P500 over the same period. The lean companies outperformed the index.
Are those formulas right? I’m trying to get an annual return.