Our Factor-Based Models Have Substantially Outperformed the Market Since 2003
| Guru Based on | Number Of Stocks |
Rebalancing | Annual Return |
|---|---|---|---|
| Motley Fool | 10 | Monthly | 12.4% |
| Benjamin Graham | 10 | Annual | 11.4% |
| Martin Zweig | 20 | Quarterly | 11.1% |
| Peter Lynch | 20 | Monthly | 10.4% |
| Kenneth Fisher | 10 | Quarterly | 10.0% |
| James P. O'Shaughnessy | 20 | Monthly | 8.2% |
| Warren Buffett | 10 | Monthly | 7.3% |
| Joseph Piotroski | 20 | Annual | 6.4% |
| John Neff | 20 | Quarterly | 5.6% |
| David Dreman | 10 | Monthly | 4.6% |
| Joel Greenblatt | 10 | Monthly | 5.4% |
01/07/2019
By Jack Forehand (@practicalquant)
There is perhaps no issue that is the subject of more debate in the factor investing community than factor timing. We are all trained to buy low and sell high, and it is tempting to conclude that we can do the same thing with factors. For example, if value stocks have struggled for a long period of time and they are cheap relative to their history, it makes intuitive sense to add exposure to them and to try to take advantage of mean reversion when they bounce back. It also makes sense in theory to reduce exposure to a factor after a long run of positive relative performance. As is the case with many things in investing, though, the actual implementation of that concept proves much more difficult in the real world than it seems in theory.12/10/2018
By Justin Carbonneau (@jjcarbonneau)
The original "hierarchy of needs" model was developed by Abraham Maslow in 1943. Maslow proposed the hierarchy as a way to understand human motivation and later extended it to human curiosity. The hierarchy can be viewed as a pyramid with layers, which included things like “physiological,” “safety,” “belonging and love,” “esteem,” and “self-actualization”. Each part builds off the one below, and before one could move up the pyramid the existing layer would need to be understood and internalized.12/5/2018
By Jack Forehand (@practicalquant)
Wall Street prediction season is upon us. It is the time of year when all the major investment banks and market pundits will issue their 2019 market outlooks. They will tell you what they think will happen in the next year and will even by nice enough to give you exact price targets they think the S&P 500 will reach by year end. Unfortunately for all of us, those predictions won’t be worth that much.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.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.
