Our Factor-Based Models Have Substantially Outperformed the Market Since 2003
| Guru Based on | Number Of Stocks |
Rebalancing | Annual Return |
|---|---|---|---|
| Motley Fool | 10 | Monthly | 12.2% |
| Benjamin Graham | 10 | Annual | 11.1% |
| Martin Zweig | 20 | Quarterly | 10.9% |
| Peter Lynch | 20 | Monthly | 10.2% |
| Kenneth Fisher | 10 | Quarterly | 9.6% |
| James P. O'Shaughnessy | 20 | Monthly | 8.0% |
| Warren Buffett | 10 | Monthly | 7.2% |
| Joseph Piotroski | 20 | Annual | 6.3% |
| John Neff | 20 | Quarterly | 5.3% |
| Joel Greenblatt | 10 | Monthly | 5.7% |
| David Dreman | 10 | Monthly | 4.2% |
11/28/2018
By Jack Forehand (@practicalquant)
The day you begin to follow a new investment strategy is typically a day of optimism. You have done your research, you have looked at the historical results, you believe in the investment process, and you expect to see similar returns in the future to what the strategy has done in the past. You have even potentially looked at the ups and downs of the strategy and are prepared for the fact that the ride won’t be one that goes straight up. And then you invest your money and reality sets in.11/21/2018
By Jack Forehand (@practicalquant)
An investor who has been investing the past 20 years has seen two bear markets. Both of them included declines of over 40%. Based on that, the tendency is to think that the term "bear market" is synonymous with that type of decline. The tendency is to think that the only type of bear markets that occur are the ones you have experienced yourself. The reality, though, is that all bear markets are different. The major declines we have seen in the past two are actually the exception rather than the rule.11/6/2018
By Jack Forehand (@practicalquant)
When it comes to market valuation, investors love certainty. They want to hear definitively that the market is cheap, or the market is expensive, and that they can use that information to predict where it is headed in the short-term. As a result, strategists that make these type of market calls (particularly the ones who do so on the negative side), can generate significant headlines and attention for themselves. None of this does anything to serve investors, though.10/29/2018
By Justin Carbonneau (@jjcarbonneau)
The $1.5 billion Mega Millions jackpot had a lot of people daydreaming about what they would do if they won such a windfall. With odds of about 1 in 250 million, you can almost guarantee with 100% certainty that you and everyone else you know that bought a ticket woke up on last Wednesday to be disappointed.Validea researched history's top stock pickers and developed computer models that mimic the approaches these gurus used to beat the market over lengthy periods of time. The Guru Investor is your guide to the gurus we follow and their strategies.
As a Validea subscriber, you'll receive the following benefits:
Analysis of any stock using the proven strategies of investment legends like Warren Buffett, Benjamin Graham and Peter Lynch.
Twelve different model portfolios, each of which chooses stocks using one of our individual Guru Strategies. Two consensus-based portfolios that buy and sell stocks based on a blend of our individual Guru Strategies.
Screen for stocks that pass the strategies of investment legends such as Joel Greenblatt, James O'Shaughnessy and Martin Zweig.
Our bi-weekly newsletter provides an in-depth look at our flagship Hot List portfolio, which has substantially outperformed the S&P 500 since its July 2003 inception.
Daily updates on which stocks have been upgraded or downgraded by our guru-inspired models. When a stock's fundamentals falter, you'll know right away.
