Invest Using the Proven Strategies of Wall Street Legends

Validea Guru Investing Report
How You Can Beat the Market Using Strategies of the Pros

John Reese
Validea CEO 		With all the hype on Wall Street these days, it is easy to lose track of the major goal of investing - performance. Performance is what all investment strategies should be judged by. For an investing strategy to be considered successful, it should have a track record of outperforming the market over a long period of time. Unfortunately, those type of strategies are few and far between.

When I set out, along with a team of researchers, to write my book, The Market Gurus, I had one goal in mind - finding the individuals who had a long-term record of outperforming the market, and trying to find out as much as I could about the strategy they used to do it. After several years of research, I was able to locate a group of strategies that had the solid track records I was looking for and that could easily be followed by individual investors. These strategies were based on the published writings of a select group of market gurus, each of whom was a top performer themselves. These gurus include Warren Buffett, Peter Lynch, Ben Graham, Martin Zweig and David Dreman.

After publishing my book, it became obvious to me that it wasn't necessary to continue investing in underperforming mutual funds and that there was a better way to invest. That is why I founded Validea.com, which makes following the strategies of legendary market gurus simple and easy for the individual investor.

Guru Investing (the principle upon which my model portfolio system was founded) is not just about a particular strategy or a particular person. Guru Investing is a different way to invest that is both disciplined and sensible. It involves following proven strategies through both good and bad times. It also involves letting the fundamentals of a company speak for themselves and removing emotional decisions from the investing process. This special report outlines the principles behind Guru Investing and why I think it is a better way to invest. I have developed these principles over a period of many years and have seen the results of it in my own portfolio. I hope you take an opportunity to review these principles and to try Validea.com for yourself to see how the system of Guru Investing can work for you.
 



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The Principles of Guru Investing

  • Don't Try to Re-Invent the Wheel
    Over 90% of managers who attempt to beat the market over the long-term will fail. Investors give themselves the best chance of succeeding by following the proven quantitative strategies of individuals who have consistently beaten the market themselves. Many market beating investors, including Peter Lynch, Ben Graham, James O'Shaughnessy, Martin Zweig and Joseph Piotroski, have published the quantitative portions of their strategies for other investors to use. Why not take advantage of their wisdom?

  • Combine the Strategies to Maximize Return and Minimize Risk
    A very limited number of stocks appeal to more than one of these proven investing strategies at any given time. By combining these strategies, investors can add an additional level of diversification for a given number of stocks because each strategy looks at a very unique set of criteria. When multiple strategies agree, the result is often a stock that appeals to many investing styles simultaneously.

  • Take Emotion out of The Investing Process
    Even the most astute investors regularly make mistakes because they let emotion get the best of them. By adhering to quantitative strategies and buying and selling only at regularly scheduled intervals, emotion is removed completely from the investment decision making process.

  • You Don't Have to Hold Stocks for the Long-Term to be a Long-Term Investor
    The key to successful long-term investing is to find a strategy that works and to stick with it through the inevitable ups and downs of the market. If the strategy no longer recommends a particular stock after holding it for a month, the stock should be sold and replaced with a new stock that does. Adhering to a proven style over the long-term makes you a long-term investor, even if you sometimes sell stocks in short-term time frames.

  • Diversify, But You Can't Beat the Market By Owning It
    Investors who hold too few stocks are taking an unnecessary amount of risk. On the other hand, mutual funds that own 500 stocks are inevitably going to closely track the returns of the market. Investors should hold a focused portfolio of 50 or less stocks, which provides most of the benefits of diversification, but also allows the winners in the portfolio to have a greater impact.

  • Size and Style Focused Systems are Just Limiting Investment Possibilities
    Good investments can be found in different market segments at different times. Why limit yourself to a particular style (such as small-cap growth stocks), when you will inevitably underperform the market when that style goes out of favor. Buy the most attractive stocks, regardless of the size or style classification they represent.

    The Validea Hot List

    The epitome of Guru Investing is the Validea Hot List portfolio, which is based on a system that combines all the proven guru strategies from my book together. The Hot List is a model portfolio that contains the top 10 scoring stocks according to a proprietary model that not only takes into account how many guru strategies a stock passes, but also weights the guru strategies with the best historical risk-adjusted performance more heavily. The result is a portfolio of the best stocks from the best performing strategies. The Hot List not only has outperformed the S&P 500 substantially since its inception, it has done so without selecting high risk stocks. Don't take my word for it, though. You can see the performance of the Validea Hot List, as well as the average fundamentals of the stocks currently in the portfolio, in the column to the right.

    So that's it. Guru Investing is not rocket science. It doesn't take a team of NASA researchers to implement it either. It is a simple and disciplined approach to investing and it involves finding what works and sticking with it.

    I hope now that you have had the opportunity to examine the fundamentals of guru investing, you will take this opportunity to give Validea.com a try to see how you can benefit from these simple investment principles.

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    Thank you for your time.

    Best Regards,

    John Reese
    Founder & CEO, Validea.com

    • The names of individual investment advisors (i.e., the 'gurus') appearing on this website are for identification purposes of his methodology only, as derived by Validea.com from published sources, and are not intended to suggest or imply any affiliation with or endorsement or even agreement with the information presented personally by such gurus, or any knowledge or approval by such persons of the content. All trademarks, service marks and tradenames appearing on this website are the property of their respective owners, and are likewise used for identification purposes only. Validea is not registered as a securities broker-dealer or investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Validea is not responsible for trades executed by users of this site based on the information included herein. The information presented on this website does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information on this website is generic by nature and is not personalized to the specific situation of any individual. The user therefore bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional prior to making any investment decisions. Performance results are based on model portfolios and do not reflect actual trading. Actual performance will vary based on a variety of factors, including market conditions and trading costs. Past performance is not necessarily indicative of future results.