Top Performing Stock Models

Guru Based on Annual
Return
Meb Faber 24.0%
Dashan Huang 23.3%
James O'Shaughnessy 22.8%
Partha Mohanram 16.8%
Wayne Thorp 20.5%
Motley Fool 15.4%
Patrick O'Shaughnessy 20.1%
Benjamin Graham 13.5%
Validea 18.2%
Validea 12.8%
* Returns are model returns and do not reflect actual trading. Full performance disclaimer
All Stock Portfolios

Top Performing ETF Models

Portfolio Annual
Return
Factor Rotation - Momentum with Trend 14.5%
Factor Rotation - Composite with Trend 14.2%
Factor Rotation - Momentum 13.1%
Factor Rotation - Composite 12.4%
Factor Rotation - Value with Trend 11.8%
* Returns are model returns and do not reflect actual trading. Full performance disclaimer
All ETF Portfolios

Our Latest Articles

5/26/2021

Ark Investments and the Potential Downsides of an ETF Structure

By Justin Carbonneau (@jjcarbonneau)

Exchange traded funds have many great qualities. They are mostly transparent, low cost, trade in real-time and can have significant tax advantages over other investment vehicles like mutual funds and managed accounts. But like anything else, the structure is not without its weaknesses, and somewhat ironically, the success of one firm demonstrates some of the challenges ETFs and investors may face.

5/19/2021

The Voting Machine vs. the Weighing Machine

By Jack Forehand, CFA, CFP® (@practicalquant)

"In the short run, the market is a voting machine but in the long run, it is a weighing machine." I am probably one of the biggest users there is of this Ben Graham quote. I use it in articles. I use it in podcasts. I also use it in presentations. Whenever someone like me uses this quote, we are basically trying to make the same point. That point is that the market can be irrational in the short-term and supply and demand can cause prices to stray far from intrinsic value, but eventually fundamentals matter and things like earnings and cash flows drive stock prices.
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Our Podcast - Excess Returns

6/7/2021

Episode 96: Finding Quality Value Stocks With Joseph Piotroski's F Score Methodology

Research shows that value stocks can generate an excess return because the market tends to overestimate their problems, and value investors benefit when it realizes that. But despite that being true on average, many value stocks actually have even bigger problems than the market has priced in. This week, we look at one of the quantitative strategies we follow that attempts to separate the winners from the losers within the value investing space. We discuss Joseph Piotroski's paper "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers". In the paper, Piotroski developed a series of nine fundamental tests (which he called the F Score) to identify value stocks that are more likely to generate an excess return going forward. He found that stocks with high F Scores showed significant improvements in performance relative to stocks with low F Scores. We examine the nine criteria used in this strategy in detail and talk about how it can be implemented in an investment strategy.

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6/3/2021

Episode 95: Robert Hagstrom on Warren Buffett's Money Mind, Successful Investing & Finding Quality Companies

There have been so many books written about Warren Buffett that it can be hard to keep track of them. But before all of that could happen, someone had to be the first. This week we are joined by Robert Hagstrom, whose book The Warren Buffett Way was the first book that took a detailed look at Buffett's investment strategy. And subsequent to that, he has also published The Warren Buffett Portfolio and Warren Buffett: Inside the Ultimate Money Mind, which looked at how Buffett constructs portfolios and the mental aspects on his investment process. Robert is also a Senior Portfolio Manager at EquityCompass and has a long record of taking the principles of Buffett and applying them in the real world. In the interview, we look at the details of the investment process that has made Buffett successful and what Robert has learned managing money using Buffett's principles over his career. We also look at Robert's lessons from working with Bill Miller and how Miller has helped redefine the way investors define value investing.

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Performance Disclaimer: Returns presented on Validea.com are model returns and do not represent actual trading. As a result, they do not incorporate any commissions or other trading costs or fees. Model portfolios with inception dates on or after 12/30/2005 include a combination of back tested and live model returns. The back-tested performance results shown are hypothetical and are not the result of real-time management of actual accounts. The back-testing of performance differs from actual account performance because the investment strategy may be adjusted at any time, for any reason and can continue to be changed until desired or better performance results are achieved. Back-tested returns are presented to provide general information regarding how the underlying strategy behind the portfolio performed in our historical testing. A back-tested strategy has the benefit of hindsight and the results do not reflect the impact that material economic or market factors may have had on advisor's decision-making if actual client assets were being managed using this approach. The model portfolios offered on Validea are concentrated and as a result they will exhibit high levels of volatility and their performance can be substantially impacted by the performance of individual positions.

Optimal portfolios presented on Validea.com represent the rebalancing period that has led to the best historical performance for each of our equity models. Each optimal portfolio was determined after the fact with performance information that was not available at portfolio inception. As a result, an investor could not have invested in the optimal portfolio since its inception. Optimal portfolios are presented to allow investors to quickly determine the portfolio size and rebalancing period that has performed best for each of our models in our historical testing.

Both the model portfolio and benchmark returns presented for all equity portfolios on Validea.com are not inclusive of dividends. Returns for our ETF portfolios and trend following system, and the benchmarks they are compared to, are inclusive of dividends. The S&P 500 is presented as a benchmark because it is the most widely followed benchmark of the overall US market and is most often used by investors for return comparison purposes. As with any investment strategy, there is potential for profit as well as the possibility of loss and investors may incur a loss despite a past history of gains. Past performance does not guarantee future results. Results will vary with economic and market conditions.