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… Read More

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… Read More

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… Read More

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… Read More

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… Read More

Five Picks for the Common-Sense Investor

How should an investor address the ever-present question as to whether an exciting, media-saturated stock is actually a sound opportunity? In anticipation of Snapchat Inc.’s IPO, Validea CEO John Reese addresses the quandary in his article for Nasdaq this week. Citing new research by Charles Lee and Ken Li of Stanford University, Reese explains the need for caution in situations such as this. Findings suggest that “those companies most likely to issue stock have a… Read More

Six Tempting Picks for the ‘Joe Six Pack’ Investor

“Davos Man,” the hypothetical investor who gravitates toward global businesses and bonds has been ruling the roost for the past decade, but he might be passing the baton to “Joe Six Pack” investors, which focus more on mainstream, domestic assets. This according to a recent Globe and Mail article by Validea CEO John Reese. The article discusses the notion of the Great Rotation theory– the idea that the financial assets that thrived during the last… Read More

Finding the Cream of the Dow

The milestone of the Dow hitting 20,000 in late January should be taken with a grain of salt, writes Validea CEO John Reese in this week’s Nasdaq. He argues that, given the Dow’s history, the event isn’t really that significant. Starting at its inception in 1896, it took the Dow over a decade to reach 100, then 66 years to reach 1,000, then another 41 years to make 15,000—so, rising by 5,000 in three-and-a-half years,… Read More

Three Stocks that Follow Peter Lynch’s Investment Style

The highly successful track record of Fidelity’s Magellan fund throughout the 1980s made then-manager Peter Lynch a household name. In a recent Globe and Mail article, Validea CEO John Reese outlines the major tenets of the Lynch investment philosophy and the corresponding metrics used to evaluate stocks. Lynch believed in doing plenty of research before investing and sticking with companies you understand, says Reese, who explains that, while at Magellan, Lynch “honed in on fast-growing… Read More

Stocks that Could Benefit from the High Price of Raising Kids

A new report from the U.S. Department of Agriculture found that married, middle-income parents will spend $233,610  to raise a child born in 2015 from infancy to adulthood, a figure 3% higher than the prior year, writes Validea CEO John Reese in last week’s Forbes. Using his guru-inspired stock screening models, Reese identifies five high-scoring stocks (representing a range of spending categories), that could see some upside from the high price-tag: Procter & Gamble (PG)… Read More