Value Investing: Three Ways To Achieve Superior L/T Returns

Value Investing: Three Ways To Achieve Superior L/T Returns

1. Informational advantage – unless you are analyzing microcaps, “better information” usually means insider information and will land you in jail.

2. Analytical advantage – being able to analyze information better, you can build better models.

3. Behavioral advantage – be more rational than average market participant

These Are John Buckingham’s Stock Picks For 2021

John Buckingham Stock PicksThe economy remains in distress, although there are signs of recovery underway. John Buckingham of Kovitz, editor of The Prudent Speculator newsletter, has found that value stocks typically outperform coming out of economic downturns. Thus, he argues that this is an excellent time to be a value investor. Q4 2020 hedge fund letters, conferences and Read More

Long term returns

Investment process

  • Screens – 52 week lows, insider buying, magic formula (high return on capital + low P/E), etc…
  • Watch lists – often when we do analysis we find companies we like but that are too expensive (no margin of safety), we determine what price valuation we want to own them at and put them on a watch list and wait. Actively seek to identify great businesses, value them and put them on a watch list.

H/T ContrarianEdge

Three Ways To Achieve Superior Long Term Returns

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