Housing Market Confidence is Building

Homebuilder optimism has grown, according to The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) which settled at 65 in September (it had not been that high since October 2015). In an article for TheStreet, Validea CEO John Reese outlines some of the reasons for the upbeat mood and offers the following four picks that look solid based on our guru models: LGI Homes (LGIH) is engaged in the design, construction, marketing and sale… Read More

Stocks with a Durable Competitive Advantage

A mainstay of Warren Buffett’s investment philosophy is his belief that the strongest companies possess a keen competitive edge against their peers. He looks for businesses that perform consistently, regardless of outside forces, boast brand recognition, and/or provide goods and services people use on a daily basis. In an article for The Globe and Mail, Validea CEO John Reese offers four stock picks that score highly based on their competitive strengths. Apple Inc. (AAPL): The… Read More

Canadian Stocks Offer Value

Since the start of the bull market in March 2009, U.S. equities have outperformed Canadian stocks. However, things are changing and the Canadian stock market is coming on strong, writes Validea CEO John Reese in an article for The Globe and Mail. Despite the trend, however, Reese says that Canadian stocks are still “better bargains than their U.S. counterparts.” He cites the rebound occurring in Canada’s commodity and energy stocks and the stability of a… Read More

Graham and Buffett Back-to-School Picks

There’s a wide range of expectations for the retail sector with respect to this year’s back-to-school shopping results. In a recent article for Forbes, Validea CEO John Reese offers some data and insights on which retailers might make the grade. According to the National Retail Foundation, an improved sales season would be the first in four years. Total spending for K-12 and college is expected to reach $75.8 billion, up from $68 billion last year.… Read More

Focus on the Cold, Hard Facts & Fundamentals

While the importance of numbers in finance may seem painfully obvious, it’s not unusual to hear people discuss markets and investments in terms of opinion and hearsay. In a recent article for TheStreet, Validea CEO John Reese warns that buying stocks on a “hunch” amounts to guessing. Instead, he advocates evaluating buying opportunities based on underlying business fundamentals, the focus of his guru-inspired investment strategies. Among the data points central to these strategies are: debt,… Read More

Fundamentally Solid Value Picks in the Spirit of Graham and Doddsville

  In his revered 1984 speech at Columbia Business School, Warren Buffett referred to the strong track records of a group of prominent value investors as follows: “A concentration of winners that simply cannot be explained by chance can be traced to this particular intellectual village.” In other words, writes Validea CEO John Reese in a recent Forbes article, value investing pays off in the long term. The article emphasizes the importance of focusing on… Read More

Blending Strategies to Reduce Volatility and Boost Results

No single investment strategy ensures success and, as we have emphasized time and again, zig-zagging from one to another is a futile (and often costly) exercise. In a recent article for Nasdaq, Validea CEO John Reese explains how combining different investment methodologies can reduce overall volatility in a portfolio and lead to improved long-term results. Since inception (in 2003), Validea’s Momentum Investor portfolio has returned 192.2% and our Value Investor portfolio has returned 238.3% (outperforming… 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

John Neff: Bargain Hunter

Unloved but promising stocks were just the ticket for Investment guru John Neff. While managing the Windsor Fund for more than 30 years, his conservative approach earned an average 13.7% annual return and beat the market by an average of 3.1% per year. In his article for TheStreet.com this week,  Validea CEO John Reese describes this Low P/E Investor’s philosophy and offers some fundamentally solid stock picks. Scripps Networks Interactive, Inc. (SNI) is a developer… Read More

Augmented Reality Craze and Stock Picks

Earlier this month, Pokémon Go took the augmented reality world by storm, sending throngs of folks into the streets hunting monsters. In his latest article for TheStreet.com John Reese, CEO of Validea, offered his insights on AR, where it’s headed, and the potential opportunities it presents in other industry sectors. The retail sector and social media space are two areas he highlighted as rife with potential. In fact, several retailers have launched AR apps to… Read More