This week, we highlight the returns to the Enterprising Investor Shadow Stock Portfolio.
Shadow Stock Portfolios
The purpose of the shadow stock portfolios is to show investors how systematic investment strategies can be implemented using the stock screens featured on TheStockMarketBlueprint.com
Welcome to our latest issue of ValueWalk’s hedge fund update. Below subscribers can find an excerpt in text and the full issue in PDF format. Please send us your feedback! Featuring Point72 Asset Management losing about 10% in January, Millennium Management on a hiring spree, and hedge fund industry's assets under management swell to nearly Read More
Additionally, the shadow stock portfolios are establishing track records for the strategies being implemented. These records provide actual investment results in real-time.
Enterprising Investor Description
Chapter 15 of The Intelligent Investor is titled “Stock Selection for the Enterprising Investor.” In this chapter Benjamin Graham lays out six criteria which are “rather similar to those we suggested for the defensive investor, but not so severe.”
The first criteria is concerned with the stock’s price relative to recent earnings, and the next four are concerned with the company’s “past performance and current financial position.” The last requirement values the stock based on the company’s net tangible assets.
According to Graham, an enterprising investor buys from a list of common stocks “that can be identified as undervalued by logical and reasonably dependable standards.”
See a more detailed explanation of the screen here.
Returns to the Enterprising Investor
Since beginning the shadow stock portfolios on June 1, 2016, the Enterprising Investor portfolio owns two stocks and is 20% invested.
The return on the invested capital is nearly 8%. The total return on the portfolio when including cash is 1.58%.
Here’s a breakdown of what the portfolio owns and how it’s performing:
- Company Name: Haverty Furniture Companies
- Ticker Symbol: HVT
- Shares Purchased: 53
- Buy Price: $18.58
- Buy Date: 6/1/16 (closing price)
- Current Price: $18.84 (closing price on 7/13/16)
- Reinvested Dividends: None
- Total Investment: $984.74
- Current Worth: $998.52
- Return: 1.40%
- Company Name: Celadon Group, Inc.
- Ticker Symbol: CGI
- Shares Purchased: 130
- Buy Price: $7.67
- Buy Date: 7/7/16 (closing price)
- Current Price: $8.78 (closing price on 7/13/16)
- Reinvested Dividends: None
- Total Investment: $997.10
- Current Worth: $1,141.40
- Return: 14.47%
- Investable Cash: $8,018.16
- Invested Amount: $2,139.92
- Starting Balance: $10,000.00
- Current Balance: $10,158.08
- Total Return: 1.58%
Check out the Shadow Stock Portfolios blog post to review the strict “buy” and “sell” rules followed by this strategy.
Build Your Own Portfolio
By investing blindly based on what the screens tell you to, rule-based investment strategies eliminate human emotions from the decision-making process.
Follow along every week to see the performance of a different featured Shadow Stock Portfolio. Each strategy is highlighted every eight weeks.
The shadow stock portfolios invest only in the qualifying stocks on the screens available withPremium membership. Basic membership screens display a limited number of stocks with specific market cap criteria.
You can implement these strategies yourself by upgrading to Premium. Start your risk-free 14 day trial now and access the Premium stock screens.