Keys to Success from Bogle, Buffett and Others

In a recent Forbes article, Validea CEO John Reese shared seven keys to investing success from such legends as Warren Buffett, Joel Greenblatt, Jack Bogle and Peter Lynch. Here are some highlights:

  • Time is your friend—take advantage of compounding returns.
  • Impulse is your enemy—emotional investing decisions are a bad idea.
  • Basic arithmetic works—be mindful of transaction costs and fees.
  • Stay the course—stick to your investment plan.

Using his stock screening models, Reese identified the following high-scoring picks:

  • ManpowerGroup (MAN), a provider of workforce solution and services, earns high marks for persistent growth in earnings-per-share and a favorable price-sales ratio.
  • Nissan Motor Co. Ltd. (NSANY), the automotive products company, gets a thumb’s up for cash flow-per-share and dividend yield.
  • Athene Holding Ltd. (ATH) is an insurance holding company that scores well for its price-earnings ratio and sales growth.
  • Vale SA (VALE) is a global producer of iron ore, iron ore pellets and nickel. The company is favored for its book-market ratio, operating cash flow and liquidity.
  • GameStop (GME) is a video game retailer that earns high marks for its earnings yield and return-on-total capital.