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Guru Analysis FAQ
What is Guru Analysis?
Guru Analysis provides an in-depth analysis of any stock using Validea's interpretations of the published writings of
(or, in the case of Warren Buffett, the writings about) 12 of history's most successful investors. These include: Warren Buffett,
David Dreman, Kenneth Fisher, Benjamin Graham, Peter Lynch, The Motley Fool, John Neff, James P. O'Shaughnessy,
Joseph Piotroski and Martin Zweig.
How does Guru Analysis Work
Using the power of Validea's computer programming and its access to the financial data of Reuters, Guru Analysis takes virtually
any stock listed on the New York Stock Exchange, NASDAQ and the smaller exchanges, and analyzes them based on each guru's published strategy.
Each strategy has different criteria it looks at. Guru Analysis runs each criteria of each strategy against the financial data of the
company you are studying. It then tells you, instantly, how each of our 12 strategies rates the stock; you get 12 scores or ratings
for each stock.
What do the guru ratings or scores mean
The Guru Analysis ratings or scores (scores and ratings are the same thing) are based on a range of 0 percent to 100 percent
for each strategy as it is applied to the stock you are interested in. The ratings factor the number of tests the stock "passes" for each strategy.
If it passes none of the strategy's tests, it gets a rating of 0 percent; and if it passes all tests, it gets a 100 percent rating. Different tests
within each strategy get different weightings, because each investor thinks some criteria are more important than others. Our interpretations of the
strategies take these different weightings into consideration. In fact, some criteria are so important to certain gurus that, if the stock
fails one of those criteria, it fails the guru's strategy entirely, and will get a score of 0 percent, even if it passes other tests.
What do "Strong Interest" and "Some Interest" mean?
Strong Interest and Some Interest are a way to tell how well a stock meets a particular strategy's criteria.
Strong Interest indicates that a stock meets essentially all of the criteria and Some Interest indicates that it meets most
of the criteria. The scores that result in Strong Interest and Some Interest will vary for each strategy, but as a general
rule 90% or above results in Strong Interest and 80% or above results in Some Interest.
How often is Guru Analysis updated?
The Guru Analysis is updated each night.
How do your guru strategies perform?
We launched model portfolios based on our guru strategies on July 15, 2003. We have a portfolio based on each of our guru
strategies and several that combine all them. View the Model Portfolio Returns.
Is there any affiliation between Validea and the gurus that the strategies are based on?
No, the names of individual investment advisors (i.e., the 'gurus') appearing on
our site 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 our reports
personally by such gurus, or any knowledge or approval by such persons of the
content of our site.
What is the Guru Stock Screener?
The Guru Stock Screener allows you to see the stocks currently passing the strategies
from our Guru Analysis. You can see the stocks that pass a particular strategy you are interested in or you can combine
the strategies to see stocks that pass multiple gurus simultaneously. Our Advanced Guru Stock Screener allows you to combine
your own fundamental screens with our guru strategies and save the resulting screen as your own guru methodology.