Old School Value Nugget Fest (Jan 9th Edition)


Pick the best value stocks with our Stock Ranks, screening and valuation tool. Try the live demo today.

Written by

Jae Jun

follow me on

Facebook

Twitter

Welcome to the inaugural OSV Nugget Fest.

The 2017 party continues.

It’s good and bad. At the moment, you could literally buy and rebalance growth stocks every month and do well. Keep riding the momentum train.

On the other hand, valuations are stretched and trying to find the cheaper stuff means you have reach into the “unwanted” pile.

As I look back at my hits and misses over the past few years, the common theme has been that, when I look for cheap, it hasn’t worked out as often as I would have liked. The hit rate is too low.

On the other hand, the fairly valued businesses with growing prospects have done better. In that sense, I can’t deny being gun shy when it comes to the Buffett style. I find myself looking for more cigar butt stuff than anything else when I do manual searches.

The other strategy has been to be more active with my quant portfolio. I’ve shared before that 75% of my portfolio is now built around the Action Score. Largely due to timing and luck, the Action Score stocks helped pay a big portion of my first home purchase.

When I say I eat my own cooking, I mean it.

The remaining 25% are stocks I purchased before we launched the Action Score as well as cash. Cash will increase in the next month as I deposit additional money into my IRA to reduce my 2017 taxable income.

Getting back to being proactive.

I only backtest strategies with a 1 year holding period to make it as realistic as to the point as possible. When people ask me what my selling strategy is, it has usually been to buy and hold for a year. Main reason being that life gets super busy before you know it.

But in the second half of 2017, I took a proactive approach of replacing fading stocks in the OSV Action Score category with fresh and better stocks. In this short period, it’s done better than the market, BUT, and a big but, it is unproven. I’m sure a monkey throwing darts could hit plenty of winners in this market and beat the market.

We’ll have to wait and see how the new selling strategy continues to work in 2018.

For now, I’ll leave the updates for the upcoming emails and posts. Keep your eyes posted.

Old School Value Articles You May Have Missed

What We’re Reading in the Media

What is Old School Value?

Old School Value is a suite of value investing tools designed to fatten your portfolio by identifying what stocks to buy and sell.

It is a stock grader, value screener, and valuation tools for the busy investor designed to help you pick stocks 4x faster.

Check out the live preview of AMZN, MSFT, BAC, AAPL and FB.

Image

Pick the best value stocks with our Stock Ranks, screening and valuation tool. Try the live demo today.

Pick Winning Stocks and Fatten Your Portfolio

LIVE PREVIEW OF AAPL, MSFT