FINANCEMonths to result88% confidence

Data-Over-Opinion Research

Approach markets with no preset answer; let data tell you what's real.

Problem it solves

results-driven research bias

Best for

Analysts and traders building repeatable signals or testing investing claims rigorously

Not ideal for

Casual retail investors with no time, coding skill, or appetite for testing

Overview

Why this framework exists

Most investors decide their conclusion first and then hunt for data that confirms it. Boyle's approach inverts this: start with no opinion, get historical data, and run tests to see whether a claim survives. The 90% of research that finds nothing is the point — it's how you isolate the rare signal that's real.

The framework treats investing claims (cheap stocks beat expensive, value beats growth, momentum works) as hypotheses to falsify rather than truths to defend. Statistics matters because it tells you whether a finding is signal or random artifact of the data. The discipline protects you from your own biases and from finance gurus who pound the table.

Applied consistently, it builds a small set of robust ideas you actually trust — and a healthy scepticism toward any prediction, including your own.

Core principles

5 total
  1. Approach every market claim with no predetermined answer.
  2. Most research finds nothing — that's the cost of finding the rare real signal.
  3. Statistics exists to tell you whether a result is real or random.
  4. Results-driven research means torturing data until it agrees with you.
  5. The future isn't predictable, but data lets you make the decisions a wise person would make.

Steps

6 steps
  1. Frame the claim as a falsifiable question
    Take a market belief ('value beats growth', 'cheap stocks outperform') and rewrite it as something testable with data. Be precise about the time period, universe, and metric.
    Pro tipWrite the question down before you look at any data — it stops you reverse-engineering the test to fit a hunch.
  2. Pull long-history data
    Get the longest clean dataset you can. Boyle uses 100 years of price-earnings ratios as an example. Short windows mistake regime for rule.
    WarningA signal that only works in the last 10 years may just be a regime, not a rule.
  3. Run the simplest possible test first
    Sort the universe in half (cheap vs expensive, growth vs value) and compare returns. Don't add complexity until the simple version is understood.
    Pro tipIf a basic split-sort doesn't show anything, fancy machine learning won't save it.
  4. Apply statistical tests for significance
    Use stats to ask 'is this real or random?' rather than just eyeballing returns. A finding without significance testing is a story, not a signal.
  5. Discard 90% of findings without regret
    Most ideas you test won't hold up. Throwing them away is doing the job correctly. Keep only the 10% with both economic logic and statistical strength.
    Pro tipTrack what you killed and why — sometimes a dead idea becomes useful when conditions change.
  6. Hold confidence loosely
    Even your survivors decay as others discover them and arbitrage them away. Treat every signal as having a finite shelf life and keep researching.
    WarningIf you find cheap stocks and others copy you, they stop being cheap — the market changes as you interact with it.

Checklist

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Examples

2 cases
Cheap vs expensive stocks over a century

Boyle describes the simplest possible quant test: take 100 years of P/E ratios, split the universe in half, and compare returns of the cheap basket to the expensive one. No theory required — the data either supports value or it doesn't.

OutcomeA repeatable methodology any retail investor with a spreadsheet could replicate to interrogate any 'X beats Y' claim.
Renaissance Technologies and Chrysler

Boyle recounts a story from Jim Simons' biography: a Renaissance trader explained their approach using Chrysler stock as an example — a company that had stopped existing five years earlier. Quant investors don't care about the name; they care about statistical properties.

OutcomeReinforces that the method is name-agnostic — the discipline is in the data, not the company narrative.

Common mistakes

4 traps
Starting with the answer
Investors decide value or growth wins, then cherry-pick the period and metric that prove them right. Boyle's old boss called it 'results-driven research'.
Confusing calculation with understanding
Statistics taught as formulas means nothing until you have a real question. People run tests without knowing what 'significant' actually tells them.
Believing complex strategies always beat simple ones
Often the simplest investment strategy outperforms because the investor can stick to it. Complex strategies fail when the user panics out at lows.
Treating one-off backtests as proof
Without out-of-sample tests and statistical significance, a backtest is just a story. Strange runs of luck are explained by probability, not skill.

Origin story

How this framework came to be

Boyle started in markets in 1997 looking 21, struggling to be taken seriously next to senior traders. He couldn't buy 20 years of experience, so he bought books, built spreadsheets, and tested every claim he read. Moving from Ireland to the US with few friends and a new computer, he spent nights running tests like 'are cheap stocks really better than expensive ones?'

That habit of testing instead of believing pulled him into statistics — not the abstract calculations he'd been taught at university, but as a tool to answer 'is this signal real or noise?' That bottom-up curiosity became the basis of his quant career and his YouTube channel.

Source

Traced to primary
Source · PODCAST
The Truth About Investing
Patrick Boyle · 2024
Open source →

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