Five Picks for Investing in a Bull Market Without Getting Trampled

In a recent article for Forbes, Validea CEO John Reese discussed how investors can take advantage of the ongoing bull market without getting trampled. He refers to the strategy of Warren Buffett who, Reese writes, “would probably answer this question by advising investors to be prepared–to stick to business fundamentals rather than stock market trends when deciding what to buy.” Using the stock screening models he created based on the investment philosophy of Buffett and other legendary market investors, Reese identified the following high-scoring stocks: Tractor Supply Company (TSCO)is an operator of rural lifestyle retail stores in the U.S. that […]

John Neff and Five Picks for the Low P/E Investor

For legendary investor John Neff, who managed Vanguard’s Windsor Fund from 1964 to 1995, a stock’s price-earnings ratio represented a measure of what level of growth investors are expecting a company to achieve in the future. This according to a recent Nasdaq article by Validea CEO John Reese. The expectation factor, writes Reese, “was paramount for Neff, who found that high-flying growth stocks with high P/E’s were very sensitive to any disappointment compared to expectations.” But Neff saw the upside potential in this scenario if an investor was able to find those stocks that were unfairly beaten down. Reese outlines […]

Share Buybacks Down Plus Five Picks

Although share buybacks boost earnings-per-share for investors, companies are slowing it down of late, writes Validea CEO John Reese in a recent article for Nasdaq. Reese cites a recent Barron’s article that says: “As with many games, this one has gone on for too long, as companies borrowed heaps of cash not to fund future growth, but to reduce their share count even further.” One reason for the slowdown, Reese says, is that share valuations are higher. “The move only makes sense,” writes Reese, “if the shares are being repurchased at a reasonable price.” Using stock screening models he created […]

Buffett and Thorp, and Five Stocks to Consider

 In yesterday’s Forbes, Validea CEO John Reese profiles the mathematician and author Edward Thorp, describing him as “masterful at integrating his vast knowledge of probability and statistics into the world of investing.” In the article, Reese highlights how Thorp shared Warren Buffett’s penchant for gathering and using data to unveil market opportunities in the form of mispriced equities. Using the stock screening models he created based on the strategies of Buffett and other investing gurus, Reese identifies the following five high-scoring stocks: TJX Companies (TJX) is an off-price apparel and home fashions retailer in the U.S. and across the world. […]

Quant Strategies Are Not Magic

 The flow of funds into the quant investment strategies continues but, like most new ideas, this one doesn’t come without caveats, writes Validea CEO John Reese in a recent Forbes article. Reese argues how quant strategies shouldn’t be considered a magic bullet, but rather a tool to thwart an emotional approach to investing. He underscores the advantage of the type of blended approach used by Validea, and identifies the following picks identified using his stock screening models: Accenture PLC (ACN) provides management and technology consulting services. The company earns high marks for its predictable and stable earnings-per-share as well as […]