Investing Principles Part III: Buying Stocks Where the Insiders Are Buying

In a continuation of our discussion around the Tweedy Browne publication What Has Worked In Investing we’re going to address the approach related to investing with the “inner circle” and buying stocks where insiders are buying as well. Results of several different studies were included, one of which was conducted in 1976 by Validea “Conservative Growth Investor” Martin Zweig. This guru believed that those who work for a company know it best and if several are buying shares (and nobody is selling) it could bode well. In order for a stock to pass our Zweig-based screening model, there must be […]

Guru Martin Zweig: Earnings-Focused Stock Hunter

Since the age of 13, Martin Zweig was determined to become a successful investor. He succeeded in a big way, and his stock recommendation newsletter (the Zweig Forecast) was ranked number one by Hulbert Financial Digest for 15 years. In a profile on Zweig for Forbes, Validea CEO John Reese describes this guru’s complex, largely earnings-based investment strategy. Zweig believed there were two different approaches to choosing stocks: the “shotgun” approach and the “rifle” approach. The first of the two (his preferred method) involves compiling publicly available data on a large number of stocks and then screening by various criteria. […]

Great Pages: Zweig's "Shotgun" Approach

Can a single page of a book change your investment life? We believe it can. Periodically, we highlight some of the Great Pages that have had a great impact on our investment philosophy. Today, we look at p. 194 from Martin Zweig’s “Winning on Wall Street”, in which Zweig first discusses stock-picking using a “rifle” approach (deeply analyzing a small number of companies), and then talks about the “shotgun” approach (screening thousands of stocks against pre-set criteria). 

How To Buy Growth Stocks Like Martin Zweig Did

Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the Martin Zweig-inspired strategy, which has averaged annual returns of 10.2% since its July 2003 inception vs. 6.3% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring stock ideas from the Zweig-based investment strategy.