Sequential vs. Simultaneous Screening: A Case Study in Quality Investing

This article examines two stock-screening methodologies—sequential and simultaneous under a quality investing framework. Using a 21-year sample of US large-cap stocks, this study demonstrates that simultaneous screening yields superior performance, more consistent factor exposures against the benchmark, and lower turnovers in contrast to its sequential counterpart. Through case studies on Microsoft and Apple, the author highlights practical challenges associated with rigid screening thresholds, particularly in benchmark-aware strategies. Importantly, this research underscores structural differences between screening methodologies and their implications for portfolio construction. The findings offer actionable insights for practitioners when selecting or designing screening tools.