Reese: Value Investing Not Dead

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.