1 The Story
Buying strength, for real money
George Chestnutt ran the American Investors Fund using relative strength, ranking stocks and industry groups by performance — and made it one of the top funds of the late 1950s and 1960s.
Chestnutt published market letters that ranked stocks and groups by strength, and his fund's record made him a practitioner's proof that relative strength could be traded, not just theorised. His ranking method averaged moving-average price slopes across timeframes. He set out his approach in Stock Market Analysis: Facts and Principles (1961).1
2 The Big Idea
What they gave the markets
Rank everything by strength, and own the leaders.
Chestnutt computed relative-strength rankings for stocks and industry groups and concentrated capital in the strongest — an early, disciplined leadership strategy.1
3 The Method & Contribution
What he pioneered
4 See It On This Site
Go deeper
On this site
Our Relative Strength deep dive traces the practitioner's lineage from Chestnutt to O'Neil's RS Rating.
5 The Work
Stock Market Analysis: Facts and Principles
Stock Market Analysis: Facts and Principles
George A. Chestnutt Jr. · 1961- Set out his relative-strength ranking method.
- Backed by the American Investors Fund's real record.
6 Read More
Go deeper
- CONCEPTRelative Strength — the definitive guide.
- TRADERWilliam O'Neil — who packaged RS for everyone.
§ Sources
- George A. Chestnutt Jr. — relative strength & the American Investors Fund — Goodreads.