While Marks vehemently rejects any kind of conjecture or speculation and touts the usefulness of value investing, he acknowledges that value investing also gives importance to taking into account the future when it comes to stock analysis. Marks shows us the cracks and weaknesses of technical analysis-based investing techniques and why momentum investing and analyzing a stock based on its past trends is not the right approach. His book entitled “The Most Important Thing” needs more attention, especially during volatile times of today when investors are scrambling to make sense of the stock market movements.Ī chapter in Marks’ book entitled “ The Most Important Thing is … Value” talks in detail about different approaches to investing. But legendary value investor Howard Marks has penned some great words of wisdom on this topic that remain unprecedented. Steve Goldberg is an investment adviser in the Washington, D.C., area.Much has been said and will be said about value investing and the art of picking stocks that are trading below their true value. Any newsletter can have a bad year, and short-term returns aren’t predictive of anything. If you decide to subscribe to a newsletter, resolve to stick with it for at least two or three years. Instead, the letter will continue to offer its analysts’ gold-rated funds- an approach that has produced market-beating returns. It ranks number 16 based on raw returns.Įditor Russ Kinnel recently discontinued the letter’s model portfolios. ![]() On a risk-adjusted basis, it ranks number six among the 47 letters Hulbert has tracked for at least five years. But the letter has exhibited just two-thirds of the volatility of the index. Over the past five years, it has returned an annualized 11.2%, an average of 5.5 percentage points less than the S&P 500. Morningstar Fund Investor draws on about 100 Morningstar analysts for its selections. The letter mostly uses exchange-traded funds, which stay recommended for two years, on average. The letter’s recommendations have been one-third less volatile than the S&P index, helping propel InvesTech to the number-two ranking in Hulbert’s universe on a risk-adjusted basis. Over those years, the letter ranks number three among the 25 fund letters Hulbert has followed that long. Thanks to some awesome market calls, InvesTech’s recommendations have returned an annualized 8.7% over the past 15 years-an average of 4.1 percentage points better than the S&P. His mix of fundamental and technical indicators strikes me as well thought out. Jim Stack’s InvesTech Research newsletter, whose motto is “safety first,” is no stranger to readers of this column. ![]() In terms of absolute returns, the letter ranks sixth on Hulbert’s list on a risk-adjusted basis, it ranks fifth. Over the past 15 years, the letter’s portfolios have returned an average of 7.2% annualized, beating the S&P 500 by 2.7 percentage points per year and doing so with 15% less volatility than the index. As befits a newsletter that recommends Vanguard funds, Wiener eschews market timing and, on average, holds funds nearly four years. But so does his fund selection, which includes a longtime overweight in health care stocks. Vanguard’s low costs give him a huge advantage. The letter costs $100 a year.ĭan Wiener, editor of the Independent Adviser for Vanguard Investors, has built his success largely by investing in-of all things-Vanguard’s actively managed funds. Lowell wins special kudos for performing well even though he limits his picks to Fidelity funds, which have been only so-so performers in recent years. His five portfolios hold funds an average of 1½ years. Editor Jim Lowell offers solid investment advice amid a sea of nautical metaphors.
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