A Proven Strategy for Disciplined Growth Stock Investing

This article was originally published on March 5, 2018, but the performance and stock list has been updated.  By Justin J. Carbonneau (@jjcarbonneau) —  There is no shortage of evidence showing value investing works over time. From the actual track records of great investors like Warren Buffett, Mario Gabelli, Bill Ruane and Tom Knapp, who were inspired by value investing techniques developed by Ben Graham and David Dodd, to numerous tests and academic studies that have… Read More

A Money Manager with a Long-Term View

Nancy Zevenbergen set up her own investment company at age 28 and, by 1992, had an office, 51 clients and $212 million under management. This according to a recent article in Forbes. Today, Zevenbergen Capital Investments operates out of a small office in Seattle, overseeing $2.4 billion in assets. The article outlines the founder’s career path and accomplishments. Her firm’s flagship growth equity fund, it reports, has returned 11.5% annually, net of fees, since 1987… Read More

Guru Martin Zweig: Earnings-Focused Stock Hunter

Since the age of 13, Martin Zweig was determined to become a successful investor. He succeeded in a big way, and his stock recommendation newsletter (the Zweig Forecast) was ranked number one by Hulbert Financial Digest for 15 years. In a profile on Zweig for Forbes, Validea CEO John Reese describes this guru’s complex, largely earnings-based investment strategy. Zweig believed there were two different approaches to choosing stocks: the “shotgun” approach and the “rifle” approach.… Read More

Manager with Growth (and a Hint of Value) Drives Long Term Returns

  Stocks of some large cap growth names may look expensive at current levels, but Aziz Hamzaogullari, manager of the top performing Loomis Sayles Growth Fund still sees plenty of opportunity. Hamzaogullari’s growth approach has a hint of value investing in it as well. Specifically, he “looks for companies that can generate sustainable and growing profits. But he will only invest in their stocks when they sell at a significant discount to estimated intrinsic value.”… Read More

Primecap: A Growth-Oriented, Independent, Long-Term-Focused Shop

Barron’s profiles Primecap Management, which it describes as “one of the best fund shops you’ve never heard of.” All of its six mutual funds are beating at least 86% of their peers over the last decade. The firm began in 1983 when Howard Schow founded it with Theo Kolokorones and Mitchell Milas. A year later, legendary advocate of passive investing and founder of Vanguard Jack Bogle put up $100,000 in seed money to launch the… Read More

Historical Data Suggests Value Strategies Set Up for Big Time Comeback

John Alberg and Michael Seckler of Euclidean Technologies Management write in Advisor Perspectives that “now is a very attractive time to invest in value strategies.” They note the extensive evidence that a value approach based on price-to-earnings ratios would have been profitable long term, adding that their research suggests it is particularly true “for companies that also have a combination of consistent operations, good returns on capital and balance-sheet strength.” Noting that growth investing has outperformed… Read More