Industry Rankings: Gurus’ Strategies Say Transportation-Related Stocks Looking Strong

`Every day, Validea.com uses John Reese’s Guru Strategy investing models to rank dozens of industries using a myriad of financial and fundamental data. The rankings include a value index, a growth index, and an overall index that takes both growth and value factors into account. Here’s a look at some of the current top-rated industries. 

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A Fool’s Recipe for Beating the Market

Motley Fool co-founders Tom and David Gardner have both put up exceptional long-term track records, and in a recent interview with WealthTrack, Tom discussed the brothers’ investment philosophy. Gardner says that the biggest thing an investor can do to improve their chances of success is extend their time horizon. He also says that, while the Fool offers a number of different approaches and portfolios, all of them center on the concepts of focusing on the business, not technical factors or short term stock movements, and thinking long-term. He talks about why it’s important to diversify, and why his value approach has been less volatile than his brother’s growth approach but has delivered lower returns over the long haul. Finally, Gardner talks about why he thinks index fund pioneer Jack Bogle is wrong in saying that the average investor can’t beat the market, and why he thinks Starbucks is currently one stock that can help them do that.

Quality Investing Works — If The Price Is Right

Investing in “high-quality” stocks sounds like a no-brainer. But in a very interesting piece on ETF.com, Vitali Kalesnik and Engin Kose of Research Affiliates show that quality metrics alone don’t provide the boost to returns you might expect. (H/T Stingy Investor)
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Good Companies, Cheap Shares: How To Win With The Greenblatt Approach

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 10.7% since its late 2005 inception vs. 5.3% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring stock ideas from the Greenblatt-based investment strategy.

Taken from the September 12, 2014 issue of The Validea Hot List

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Great Pages: Zweig’s “Shotgun” Approach

Can a single page of a book change your investment life? We believe it can. Periodically, we highlight some of the Great Pages that have had a great impact on our investment philosophy. Today, we look at p. 194 from Martin Zweig’s “Winning on Wall Street”, in which Zweig first discusses stock-picking using a “rifle” approach (deeply analyzing a small number of companies), and then talks about the “shotgun” approach (screening thousands of stocks against pre-set criteria). 

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