So I set about creating the Qlik Index - a stock market index of companies who are achieving success through deploying Qlik effectively, and transforming their businesses in the process.
I started by making a list of the top 30 publicly listed Qlik customers - I ranked them by how many Qlik users they had. I then used that information to build an evenly weighted index, buying an equal amount of each companies’ stock at a specific point in time 5 years ago - so I could track it against some of the benchmark indexes to see how it performed. I also used historical FX rates, which I added from Qlik DataMarket, to track the performance in US Dollars each month over 5 years.
I had a feeling that it would be good, but was quite surprised by just how good the performance was - the Qlik Index beat the Dow Jones Industrial Average by 25% over 5 years, without dividends re-invested, and the Dow has had a very good run over that time. Now this doesn’t mean that Qlik software is solely responsible for the out-performance, but it does show a correlation between strong performance and those companies who embrace analytics and use it to make strategic decisions.
It’s not the holy grail of investing, but it’s a very good stock screen – and I certainly won’t be making any new investments in companies who are not embracing analytics for decision-making.
My starting point will be with Qlik customers, specifically those customers who are deploying Qlik throughout their business.
I will continue to monitor the progress of my portfolio using Qlik Sense, and will report back again soon.
Technical Note 1: The yield on the Dow was slightly lower than on the Qlik Index (2.68%), and so I didn’t calculate the impact of re-invested dividends as they were too close for there to be a significant difference.
Technical Note 2: The portfolio was valued each month in US Dollars using the currency rates at that point in time. Weakness in the Euro over the last 2 years eroded some of the potential gains.