John Neff and Five Picks for the Low P/E Investor

For legendary investor John Neff, who managed Vanguard’s Windsor Fund from 1964 to 1995, a stock’s price-earnings ratio represented a measure of what level of growth investors are expecting a company to achieve in the future. This according to a recent Nasdaq article by Validea CEO John Reese. The expectation factor, writes Reese, “was paramount for Neff, who found that high-flying growth stocks with high P/E’s were very sensitive to any disappointment compared to expectations.”… Read More

Peter Lynch Style Investing: Simpler is Better

 In an article for this week’s Nasdaq, Validea CEO John Reese highlights the investment philosophy of guru Peter Lynch that centers on the importance of investing in what you know. “Hardly a pithy inside tip” writes Reese, “but very characteristic of the Lynch approach.” Lynch generated one of the most impressive track records of all time during his tenure as manager of Fidelity’s Magellan Fund from 1977 to 1990. Reese outlines the concepts that form… Read More

Buffett to Investors: Railroads are Resilient Businesses

In his 2016 letter to Berkshire Hathaway shareholders, Warren Buffett argues that the resilience of the railroad business makes it an attractive investment, writes Validea CEO John Reese in a recent article for TheStreet. Buffett summarizes his faith in the industry, writes Reese, as “justified both by our past experience and by the knowledge that society will forever need huge investment in both transportation and energy.” Using the stock screening models he developed based on… Read More

Buffett and 3G Capital Might Like These Picks

 While the private-equity firm 3G Capital and Buffett’s Berkshire Hathaway have teamed up on a few headline deals (such as the acquisition of H.J. Heinz and the subsequent merger of Heinz and Kraft), their investment portfolios look a little different, writes Validea CEO John Reese in a recent article for The Globe and Mail. The Berkshire portfolio is weighted heavily in stocks of consumer goods and companies (including a big bet on Apple), while 3G’s… Read More

Buffett Revisited

The Oracle of Omaha is an investment legend whose tireless work ethic and down-to-earth philosophy has helped him grow Berkshire Hathaway into one of the largest companies in the world. In a recent article for Nasdaq, Validea CEO John Reese digs into Buffett’s stock selection method and offers five stocks picks that make the grade under his Buffett-inspired screening model (the first of which are currently in the Berkshire portfolio): Apple Inc. (AAPL),the tech industry… 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

Apple vs. Google, and Other Market “Playoff” Matchups

With the NCAA’s college football playoff only a couple weeks away, Validea CEO John Reese recently took a look at some stock market “playoff” matchups that feature several global powerhouses, including Apple, Coca-Cola, and Google. In a column for Forbes.com, Reese looks at how four pairs of market rivals stack up against each other. The matchups: Apple vs. Google, PepsiCo vs. Coca-Cola, Exxon Mobil vs. Chevron, and Anheuser-Busch InBev vs. Molson Coors. Reese uses his… Read More

Be Like Buffett: Go Low — Low-Beta, That Is

Conventional wisdom has long held that, in investing, greater risk leads to greater reward. But over the past couple years, new research has turned that idea on its head, and in his most recent Seeking Alpha article, Validea CEO John Reese looks at some of the implications for investors. “In Betting Against Beta, Andrea Frazzini and Lasse Pedersen found that [Warren] Buffett’s Berkshire Hathaway has beaten the market over the long haul by focusing on… Read More

When It Comes To Growth Or Value, Have Your Cake And Eat It Too

It’s extremely common to hear investment commentators talk about “growth” and “value” as though they are polar opposites. But Validea CEO John Reese says not to buy that false notion. “When it comes to investing’s great ‘either/or’ – that is, the growth or value debate – you can have your cake and eat it, too,” Reese writes for Canada’s Globe and Mail. “That’s because the great growth versus value debate is, in fact, a false… 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