Stocks that Could Appeal to the Value Investor

In a recent article for The Globe and Mail, Validea CEO John Reese discusses the hefty divergence between growth and value stock performance so far this year and offers insights as to the various factors at play. He references the current market’s stretched valuations, noting that “it may be hard to see value” given that the market multiple is above its historical average. “But remember,” he argues, “a big driver of that is the overweighting and outperformance of a handful of big tech stocks.” Reese suggests that investors with a long-term view might consider “strategically shifting, or tilting, some of […]

Five Stocks that Satisfy Piotroski’s Book/Market Model

The concept of quantitative investing, while gaining a lot of limelight these days, is not a new concept, writes Validea CEO John Reese in a recent Nasdaq article. Reese offers a profile of investing guru Joesph Piotroski, who authored a paper on the subject in 2000 which, writes Reese, “took Wall Street by surprise.” Reese describes Piotroski’s philosophy which focused on the book-market value of stocks as well as other metrics that enabled him to differentiate those companies whose share prices were low due to underlying financial distress from those that represented good investment opportunities. Using stock screening models Reese created […]

Keys to Investing Success and Solid Picks

In a recent Forbes article, Validea CEO John Reese shared a list of core investing concepts outlined in an essay for the CFA institute by Vanguard founder Jack Bogle, and offered parallels with tenets of market gurus such as Warren Buffett, Peter Lynch, and Joel Greenblatt: Invest you must. Failure to earn an adequate return is riskier than short term market volatility. According to Joel Greenblatt: “The strategy of putting all your eggs in one basket and watching that basket is less risky than you might think.” Time is your friend. Benjamin Graham referred to compounding as the “eighth wonder […]

Finding a Hidden Gem is Harder Than You Think

Since its 1990’s beginnings as an online bookseller, Amazon has grown into a behemoth that has “irreversibly changed the way consumers shop for everyday goods and read and watch media and entertainment,” writes Validea CEO John Reese in a recent article for Nasdaq. But scoring a hidden gem like Amazon early on, says Reese, is no easy task. “More often than not,” he writes, “investors who carefully select stocks of strong companies and diversify their portfolios across a wide range of securities are going to make money, but not make it rich on those investments alone.” According to research conducted […]

Sensible Stock Picks Based on Fundamentals

While some forms of stock picking can be risky, choosing stocks based on proven strategies and underlying fundamentals can “increase an investor’s odds of enjoying outperformance over time,” writes Validea CEO John Reese in a recent Forbes article. Reese explains that stock picking resides on a continuum comprised of varying approaches and combinations of approaches. He describes the philosophy of Benjamin Graham, the legendary investor and mentor to Warren Buffett who is widely viewed as “The Father of Value Investing,” and how his fundamentals-based investment strategy formed the basis for some of the stock screening models Reese developed. Using these […]