In his latest article for MSN Money’s Top Stocks blog, Validea CEO John Reese says that value investing is not, as some claim, dead, and he offers up his Warren Buffett-based Guru Strategy’s recent success as proof.
“Since the start of 2009, a 10-stock portfolio picked with this quantitative strategy — which is based on the value-centric approach Buffett used to build his empire — is up 99% (through Aug. 13),” Reese writes. “That’s nearly double the S&P 500’s 55% return. Last year, the portfolio gained more than 10% while the broader market was flat. And this year it’s up 13%, outperforming the S&P again.”
Reese says he’s done nothing to alter his Buffett model since the financial crisis.”It has generated these returns using good old-fashioned value investing — that is, identifying strong companies and buying their shares at attractive valuations,” he says. He offers five stocks the strategy is high on right now, including TJX Companies.