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Validea.com is an independent research firm offering stock analysis, screens and model portfolios based on the strategies of great investors. Our model portfolios select value, dividend and growth stocks based on our interpretation of the strategies of market legends, including Warren Buffett, Peter Lynch, Benjamin Graham, Kenneth Fisher, Martin Zweig, David Dreman, Joseph Piotroski and Joel Greenblatt. Interactive Brokers customers may sign up for a free trial in Account Management. Readers who are not customers of Interactive Brokers may click the following link to sign up for a risk-free trial.

Validea

March 24, 2020

Learning from Buffett and Others During Market Crises

While no one has the answers to how deep this downturn will be and how far stocks will fall, there have been other market crises in the past. Leaning on the wisdom of great investors, particularly during times such as these, can help give us the conviction to make it through.

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Validea

March 17, 2020

Some Thoughts on Market Panics

In this episode, we talk about some important lessons to keep in mind during market panics and some strategies investors can use to manage them.

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Validea

March 9, 2020

The Pros and Cons of Trend Following

To say that the track record of market timers in general is dismal would be an understatement. There are so many factors that impact market returns that getting them all right is next to impossible. And even if you do, figuring out what is and is not already priced in can be an equally fruitless exercise.

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Validea

March 3, 2020

The Dangers of Headline Investing

The recent market sell off related to the Coronavirus has many investors worried. And with good reason. When panics like this set in, we all tend to focus on worst case scenarios and want to take action in response.

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Validea

February 25, 2020

The Mechanics of Value Investing

In this episode, Jack and Justin, partners at Validea, talk about the mechanics of systematic value investing and the many decisions that go into constructing a value portfolio.

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Validea

February 4, 2020

The Elusive Definition of Risk

Risk is one of the most challenging concepts to define in investing. There are countless ways to measure it and a myriad of opinions on the proper way to evaluate it. And the debate over risk is not some theoretical academic debate that doesn’t impact everyday investors.

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Validea

January 14, 2020

Lessons From Our Most Read Five Questions Interviews

Now that we have completed our first year, I thought it might be interesting to take a look back at our most popular interviews and some of the important lessons that I learned from them. Below are our five most read interviews from our first year and the key lesson I took from each of them.

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Validea

December 17, 2019

The Danger of Overscrutinizing Out of Favor Investment Metrics

No investing factor has been maligned more than the Price/Book in recent years. In a period where value in general has performed very poorly, the Price/Book has struggled more than any of the other common value factors. When you couple that with the fact that the Price/Book’s failure to account for intangible assets makes its validity questionable in a world where more than 80% of assets are intangible, you have a perfect storm for investors challenging the long-term validity of the factor.

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Validea

November 19, 2019

A Framework to Evaluate Value Strategies

When I talk about value investing, I am talking about a more traditional definition of it. That means buying cheap stocks relative to current fundamentals. That could mean earnings or cash flow or book value or sales or a variety of other metrics. There are some funds out there that use the word “value” in their name, but don’t fit into this traditional value mold.

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Validea

November 5, 2019

The Facts About Buybacks

Before we debate the merits of buybacks, it is important to understand what they are. Profitable companies generate excess cash on a regular basis. They have a variety of options for what to do with it. They can reinvest it back in their business. They can just keep it in the bank. They can buy other companies with it . They can pay down debt. They can pay dividends. They can also buy back their own stock.

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Validea

October 22, 2019

Five Questions: Factor Timing with Nicolas Rabener

Factor timing is a pretty controversial topic in the quantitative investing world. On one hand, we are all taught that we should buy low and sell high, so it seems intuitive to add exposure to factors that are out of favor. But in reality, it isn’t that simple and factor timing is much more difficult than it would seem in theory.

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Validea

September 3, 2019

What I Do With My Personal Portfolio

Every person is unique and everyone has many different factors that impact how they manage their money. I think looking at someone else’s portfolio is much more useful from the perspective of analyzing the thought process they use to arrive at what they own rather than a recommendation to own any of those things.

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Validea

August 27, 2019

Five Questions: Hidden Risks in Investing with Corey Hoffstein

Investing in the stock market is a risky activity. The obvious risks like losing a large portion of your portfolio during a bear market, or underperforming the market by a wide margin if you employ an active strategy can be more than many investors can handle.Given th high level of risk that is inherent in investing, it doesn’t make sense to take more risk than you have to.

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Validea

August 20, 2019

Five Questions: Lessons From Finance History with Jamie Catherwood

It is clear we can all benefit from some more knowledge about market history. And that is the focus on our interview this week. Jamie Catherwood is known as “the Finance History Guy” on Twitter. Despite just graduating college in 2017, he has used his deep knowledge of finance history and his impressive networking skills to amass over 16,000 Twitter followers (yours truly has barely crossed 1000). He also was recently hired as a Client Portfolio Associate at O’Shaughnessy Asset Management.

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Validea

July 31, 2019

Five Questions: Questioning Conventional Wisdom With Lawrence Hamtil

My favorite people to follow on Twitter are those who make me think about things in different ways than I currently do. One person who certainly fits that bill is Lawrence Hamtil of Fortune Financial Advisors. In this interview, we will cover those topics, as well as several others that might make you challenge what you think about some popular investing topics.

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Validea

July 23, 2019

The Lure of the Unsolvable Problem

Just when you think you are good at investing, the market has a way of humbling you and making you realize that no one will ever completely figure it out. That may sound like a stressful thing, but in reality, it is what makes doing this job great. For someone who strives to constantly learn and to constantly improve, there is nothing better than something you can never get too good at.

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