Guru Stock Screen of the Week: Finding Small Caps with the Lynch GARP Approach

This week, we bring you the Stock Screen of the week from Validea. On Validea.com, you can screen for stocks using the site’s Guru Stock Screener, which scores stocks based on the fundamental stock selection criteria of legendary investors. The firm’s models are based on investing legends such as Warren Buffett, Peter Lynch, Benjamin Graham, Kenneth Fisher, Martin Zweig, David Dreman, Joel Greenblatt and others. This week’s screen is based on Validea’s Peter Lynch-based strategy, which… Read More

Creativity in Investment Process

A recent article in the CFA Institute’s enterprising Investor explores the role of creativity in investing, highlighting legendary investor Peter Lynch’s comment to “invest in what you know,” but also pointing out that Lynch believed “it was also necessary to support [creative] insights with traditional, in-depth research.” Freelance author Ed McCarthy asks: “Where do creative investment ideas originate? Are investment managers at the mercy of serendipitous, eureka-like moments and automated screens, or can creativity be… Read More

Is the Next Peter Lynch or Warren Buffett Waiting in the Wings as Value Emerges

Bloomberg reports on the market shifts toward value as “returning to an era when stock pickers reigned,” drawing on comments by Bank of Montreal’s Brian Belski, who said “it’s a Warren Buffet or Peter Lynch-type world where you buy good companies and stick with them.” As Bloomberg puts it, Belski’s comments reflect that “the current climate recalls the 1980s” when Lynch’s record with Fidelity and Buffet’s success “rose to fame.” The article notes, “an index… Read More

Making Friends With Bear Markets

If you are trying to avoid the next bear market, Validea CEO John P. Reese has some advice: Stop trying to avoid the next bear market. In a piece for Forbes.com, Reese cites a recent column from Mark Hulbert, who monitors the performance of hundreds of investment advisors through his Hulbert Financial Digest. Hulbert says that over the past 15 years the best performers have been those who have stayed the course through bear markets.… Read More

There’s Much More to “Buy What you Know” says Legendary Fund Manager Peter Lynch

  Peter Lynch, the super-star manager of the Fidelity Magellan Fund until 1990, says the famous advice to “invest what you know” attributed to him leaves out the importance of fundamental stock research. As reported in the Wall Street Journal recently, Lynch “explains his philosophy this way: Use your specialized knowledge to hone in on stocks you can analyze, study them and then decide if they’re worth owning.” Lynch also noted changes in the market… Read More

Would Lynch, Buffett, and Graham Like Apple, Facebook, and GE?

How do Apple, Facebook, Berkshire Hathaway, and other market giants stack up against the strategies used by history’s greatest investors? In his latest column for Forbes.com, Validea CEO John P. Reese takes a look at how 10 market titans fare, and the results might surprise you. Reese notes that, historically, small stocks have beaten large stocks by a significant margin. Small stocks have an advantage because they can fly under the radar in a way… Read More

Top Manager Borrowing From the Peter Lynch Playbook

Putnam manager Jerry Sullivan takes a three-pronged approach to picking stocks, including approaches reminiscent of Fidelity’s Peter Lynch, with whom Sullivan began his career. As a student intern 30 years ago, Sullivan caught Lynch’s eye and was offered a permanent position with Fidelity. He turned it down, but his approach to managing Putnam funds includes elements that suggest he learned a lot in those early days. Sullivan’s Putnam Multi-Cap Core fund has returned an annualized… Read More

Guru Stock Screen of the Week: Lynch Approved Stocks + Low Valuations + Long-Term Earnings Growth + Dividends

This week, we bring you the Stock Screen of the week from Validea. On Validea.com, you can screen for stocks using the site’s Guru Stock Screener, which scores stocks based on the fundamental stock selection criteria of legendary investors. The firm’s models are based on investing legends such as Warren Buffett, Peter Lynch, Benjamin Graham, Kenneth Fisher, Martin Zweig, David Dreman, Joel Greenblatt and others. The Advanced Guru Stock Screener allows users to create their… Read More

Peter Lynch And High-Dividend Stocks

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 Peter Lynch-inspired strategy, which has averaged annual returns of 11.2% since its July 2003 inception vs. 6.4% for the S&P 500. Below is an excerpt from the newsletter, along with several recent top-scoring stock ideas from the Lynch-based investment strategy.