Anyone subscribe to Validea.com? They publish a "guru portfolio", and their Ben Graham has been their best performer so far.
yahoo.businessweek.com
I found the BusinessWeek interview with Validea's founder very interesting, especially the stock choices that he mentioned.
Q: What stocks are in the Graham portfolio?
A: Each portfolio consists of 10 stocks. Graham's portfolio is Building Materials (BMHC ), Natuzzi (NTZ ), Orthodontic Centers of America (OCA ), Wescast Industries (WCST ), Fresh Del Monte Produce (FDP ), Ameron Intl. (AMN ), Industrias Bachoco (IBA ), LaFarge Intl. (LAF ), Skechers (SKX ), and Stage Stores (STGS ).
Of the above ten, I have seven. They rebalance their portfolios monthly; I don't know what "rebalance" means in Validea's context, but for me, and just guessing, I'd say I've held each my seven stocks at least a year. (For example, I've posted on AMN since 2000, I believe.) It seems to me there's a conflict for Validea: to keep subscriber interest and provide a sense that subscribers are getting value-for-money spent, the list - I would guess - has to be "updated" or changed frequently. But, it's my opinion that Ben Graham types have to be patient to see gains work out, so it's not at all unusual to expect to hold these stocks for quite a while, certainly more than a few months. I'd like to know how Validea might deal with this.
"(John)Reese (Validea founder) points out that Validea also compiles a hot list of stocks that have garnered the most interest among the strategies. That list now includes Bank of America (BAC ), PetroChina (PTR ), D.R. Horton (DHI ), Fresh Del Monte (FDP ), Foot Locker (FL ), Home Depot (HD ), Pulte Homes (PHM ), and Royal Dutch Petroleum (RD )." Here again, it seems to me most, if not all, of these stocks have been mentioned here when they were at lower prices, and I assume those here who bought at that time are still holding many of their shares. For me, I might characterize my positions here as "comfortable holdings" but not "hot".
Any comments here on the Validea approach and possible worth of a subscription? |
