Legendary investors Peter Lynch and Warren Buffett have each posted exceptional returns on their own, so what would happen if they teamed up to pick stocks? In a “Number Cruncher” column for Canada’s Globe and Mail, John Heinzl uses Validea Canada’s guru-based screeners to try to answer that question. In January, Globe and Mail put […]
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Archive | March, 2012
High-Quality — Not Value — Key To Buffett’s Success
March 30, 2012 
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Warren Buffett is known as a value investor, but a recently released research paper has found that most of Buffett’s success over the long term is due not to value investing, but to his focus on high-quality companies. The paper, “Betting Against Beta” (click here for a PDF copy), was authored by Andrea Frazzini of AQR, […]
Read moreBerkowitz’s Checklist and Lessons
March 30, 2012 0 Comments
After struggling in 2011, Morningstar Fund Manager of the Decade Bruce Berkowitz is rebounding strong in 2012, with his Fairholme fund in the top 1% of funds in its category year-to-date, according to Morningstar.com. And at a recent Columbia Investment Management Association conference, Berkowitz laid out his checklist for analyzing a company and its stock, […]
Read moreBeating the Market with Simplicity — and Discipline
March 30, 2012 0 Comments
Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the Joel Greenblatt-inspired strategy, which has averaged annual returns of 6.2% since its December 2005 inception vs. 1.7% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring […]
Read moreLittle-Known Manager, Huge Returns
March 29, 2012 0 Comments
A recent article in Investment News highlights a mutual fund manager you probably don’t know — but you should. The manager, James Wang of the Oceanstone Fund, has returned 41% over the past five years — annualized. That beats the S&P 500 by about 39% per year. “Indeed, a $10,000 investment at the fund’s inception […]
Read moreValuation Expert Says Market Only “Slightly Expensive”
March 28, 2012 0 Comments
An expert on stock valuation who warned about the late-1990s Internet bubble says that stocks aren’t near bubble territory today. Stocks are only “slightly expensive relative to their long-term average,” John Campbell, who is the chairman of Harvard’s Economics Department — and who was with Robert Shiller the co-author of a late-1996 paper that warned Federal Reserve […]
Read moreLee and Rosenberg Square off on Stocks
March 27, 2012 0 Comments
Thomas Lee, chief U.S. equity strategist at JPMorgan Chase, and David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates, went head-to-head recently on Bloomberg in discussing their differing opinions on where the stock market is headed. Lee is more bullish than Rosenberg, saying that history has shown that when the equity risk premium […]
Read moreGuru Strategy Ratings: CAJ, GD on the Move
March 27, 2012 0 Comments
Each week, we take a look at which stocks John Reese’s Validea.com Guru Strategy computer models have newfound interest in, and which they have soured on. Here’s a look at some of the stocks John’s strategies have upgraded or downgraded today.
Read moreWoodford Says Economy Doesn’t Support “Wave of Optimism”
March 26, 2012 0 Comments
Top U.K. fund manager Neil Woodford sees a “wave of optimism” among stock investors, and says it may be unjustified given the state of the global economy. “The current wave of optimism sweeping global stock markets assumes that the developed world will now emerge from the period of low economic growth it has faced since […]
Read moreShiller Not Convinced Housing Has Bottomed
March 26, 2012 0 Comments
Yale Economist Robert Shiller says he’s not sure the housing market has yet hit the turning point that some analysts say it has hit. Shiller tells CNBC that prices have been falling for four months now, but that indicators are looking stronger for the future. “I give it a chance that this could be a turning […]
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