Time to change your investment model

We demonstrate empirically that the gains from predictng corporate earnings, or consensus hits and misses-an actvity at the core of most investment methodologies-have been shrinking fast over the past 30 years. We identfy the main reasons for this loss of earnings relevance and propose an improved alternatve to current investment methodologies, one that focuses on the "strategic assets" of the enterprise and their contributon to maintaining the company's compettve edge. We demonstrate this investment methodology using subscripton-based companies.