Fundamental analysis, model portfolios and stock screens based Buffett, Graham, Lynch and other Wall Street Legends. Check out the videos.

In these videos, Validea founder and CEO, John Reese, walks you though the research and tools available on On Validea, you can see how over 6,000 stocks stack up based on 12 different guru strategies. Each model gives you a final score and tells you why the particular stock you are interested in passes or fails […]

Howard Marks: It’s Tough to Be Good at Macro Investing

Global macro hedge funds choose positions in various equity, fixed income, currency, commodities and futures markets based primarily on the economic and political views of various countries or their macroeconomic principles. According to last month’s Barron’s, they’ve suffered poor performance of late. Last year, the article notes, the benchmark HFRI Macro Index returned only 1.29%, […]

Gus Sauter Warns Investors to Plan for a Long Life

One of the most crucial things to consider if you’re approaching or in retirement is “estimating how long you’ll live,” writes former Vanguard chief investment officer George U. “Gus” Sauter in a recent Wall Street Journal article. Sauter says he’s surprised by how many people underestimate their longevity. Using the most recent analysis of life expectancy […]

SoftBank to Buy Alternative-Asset Manager Fortress

Japanese technology giant SoftBank Group has agreed to buy asset manager Fortress Investment Group LLC for $3.3 billion in a continued effort to become one of the world’s largest investment firms, says The Wall Street Journal. Fortress manages about $70 billion in assets–and invests in real estate and private equity—is considered an “alternative-asset manager”. The […]

Sexy Companies Don’t Necessarily Make Good Investments

Snap Inc. (the maker of the popular social app, SnapChat) has been getting a lot of attention of late, according to a recent article in the Financial Times, and not just because of its imminent initial public offering at a time when such events are a rarity. The article states, “It’s a company reaching out […]

Finding the Cream of the Dow

The milestone of the Dow hitting 20,000 in late January should be taken with a grain of salt, writes Validea CEO John Reese in this week’s Nasdaq. He argues that, given the Dow’s history, the event isn’t really that significant. Starting at its inception in 1896, it took the Dow over a decade to reach […]

Cash Flows Don’t Lie

Given the current political climate and the uncertainty surrounding the financial markets, it’s important for investors to stick to concrete concepts when evaluating stocks, says an article in last week’s Globe and Mail. The article asserts that, while earnings and valuations can be subject to “faking” due to accounting loopholes, “cash flows never lie.” It […]

ETFs Make Markets Less Efficient Writes Klarman

While exchange-traded-funds have claimed a growing share of investor funds, critics say these funds are “potentially dangerous and untested through a crisis,” says a Bloomberg article from last week. In a recent letter to investors, Baupost Group founder Seth Klarman explains that the dominance of ETFs is making markets less efficient: “The inherent irony of […]

Zweig: Guard Against Following the Herd

Given the market’s currently stretched valuations, optimistic investors should be on their guard, says Jason Zweig of The Wall Street Journal. Zweig discusses new findings that show how the confidence of others can influence an individual’s decision-making to a larger degree than their own can. According to a recent report in the Journal of Neuroscience, […]

Buyer Beware of Companies Carrying Heavy Debt Loads

A decade of historically low interest rates has encouraged businesses to increase leverage and this could prove dicey for investors, says a recent Barron’s article. According to Morningstar fund analyst Kevin McDevitt, companies have been refinancing or borrowing for share buybacks, not necessarily to invest in existing businesses. “The leverage,” he says, “is an added […]

Contrarian Picks Based on David Dreman’s Philosophy

The famous investor David Dreman, who Kiplinger once referred to as the “consummate contrarian”, follows a strategy which capitalizes on the emotional, knee-jerk reactions that make unpopular stocks underpriced, writes Validea CEO John Reese in TheStreet. This is no coincidence, given Dreman’s knowledge and experience in the area of behavioral finance. Dreman identifies such undervalued […]

What “Trumpflation” Could Mean to Investors

The best scenario for investors is steady and low levels of inflation that ward off deflation but also discourage central banks from hiking rates too rapidly, says a Wall Street Journal article from last month. So far, the article asserts, “Trumpflation” has been embraced by deflation-fearing investors—but shareholders should be “keeping a watchful eye on […]

Buffett’s Breakfast Benchmark

Having a disciplined, yet somewhat flexible, spending strategy is one insight investors can glean from Warren Buffett’s daily breakfast routine, writes Validea CEO John Reese in a recent issue of The Globe and Mail. Buffett’s plan, he learned from the HBO documentary “Becoming Warren Buffett”, includes choosing from a short list of breakfast options depending […]

Bridgewater Has Strong Showing in 2016

Ray Dalio’s Bridgewater Associates earned almost  $5 billion for its clients last year according to a report by hedge-fund investor LCH Investments NV, versus losses suffered by rivals George Soros and John Paulson. This according to a recent Bloomberg article. In fact, the article points out, Bridgewater was the “most lucrative, in absolute terms, of […]