In his latest column for Seeking Alpha, Validea CEO John Reese takes a look at a strategy that has been a consistent winner even though it focuses on an area of the market — small growth stocks — known for volatility and risk.
Motley Fool co-founders Tom and David Gardner have both put up exceptional long-term track records, and in a recent interview with WealthTrack, Tom discussed the brothers’ investment philosophy. Gardner says that the biggest thing an investor can do to improve their chances of success is extend their time horizon. He also says that, while the Fool offers a number of different approaches and portfolios, all of them center on the concepts of focusing on the… Read More
Few stock newsletter writers have beaten the market in both the 2007-09 bear market and the current bull market — but those who have are saying this isn’t the time to ditch stocks, according to newsletter tracker Mark Hulbert.
In his latest column for Canada’s Globe and Mail, Validea CEO John Reese discusses the merits of investing in small-cap stocks, and looks at a small-cap strategy that has produced exceptional long-term results. “From 1927 through 2012, one dollar invested in the total U.S. stock market would have grown to just shy of $3,000, according to Index Fund Advisors,” Reese says. “The same dollar invested in a basket of small U.S. stocks? It would have… Read More
While a number of recent financial scandals have led many investors to grow weary of the stock market, Motley Fool co-creators Tom and David Gardner say investors shouldn’t lose faith in stock investing. “I think that it is a great time to invest — I have always felt that way,” David tells Yahoo! Finance’s Daily Ticker. “While the backdrop of the system and a lot of skepticism is out there, probably it’s also a sign… Read More
In a recent article for Canada’s Globe and Mail, Darcy Keith highlights Validea.com’s top-performing model, the strategy that Validea CEO John Reese bases on the approach of Tom and David Gardner of The Motley Fool. Validea’s 10-stock, monthly rebalanced Fool-inspired portfolio has returned 226.4% (14.7% annualized) since its 2003 inception, vs. just 34.3% (3.5% annualized) for the S&P 500. “Don’t let the name deceive you; there’s nothing to be feeling foolish about here,” Keith writes. “The… Read More
Author and Wharton Professor Jeremy Siegel says dividends could — and should — be coming back into favor. In an interview with The Motley Fool’s Morgan Housel, Siegel discusses the reasons why dividend payouts have declined over the years, including tax issues and the fact that the rise of stock options as compensation have given many executives incentive to push profits back into share-price-boosting efforts, not dividend payouts. But Siegel says his research shows that… Read More
How many stocks should an investor own in order to diversify away stock-specific risk? Some interesting data shows that it may be fewer than you think. The data comes from hedge fund guru Joel Greenblatt’s book, You Can Be A Stock Market Genius, and was highlighted by top value investor Whitney Tilson a few years back (and recently reprinted on The Motley Fool website). According to Greenblatt’s book, the risk-reduction benefits of adding more stocks to… Read More
In his latest article for Canada’s Globe and Mail, Validea CEO John Reese takes a look at his small-stock-focused Motley Fool-based strategy, which has returned 16.1% per year in its eight-year history in the U.S., vs. 3.5% for the S&P 500. “Just as analysts and institutional buyers (which are often too big to take a meaningful stake in small stocks) tend to overlook smaller stocks, so too do average investors,” Reese writes. “Because of that,… Read More
While 2010 was a good year for the broader stock market, it was an even better year for John Reese’s Validea.com Guru Strategies. For the full year, Reese’s guru-inspired 10-stock portfolios returned an average of 19.2%, easily outpacing the S&P 500’s 12.8% return. The best performer was the approach inspired by little-known professor Joseph Piotroski, who in 2000 developed an accounting-based method to find solid stocks using the book/market ratio. In 2010, Reese’s Piotroski-inspired portfolio… Read More