In such a short time that you’ve known us, you have seen us do so much: from generating more than 25 percentage points of outperformance in our Best Ideas portfolio since inception (May 2011) to delivering on our high-single-digit return goal of our Dividend Growth portfolio during 2012 to the Valuentum Dividend Cushion score predicting the dividend cuts of JC Penney (JCP), SuperValu (SVU), Roundy’s (RNDY), and others. You’ve seen us identify a triple in EDAC Tech (EDAC) and predict the bankruptcy of the parent of American Airlines (AMR). These are tremendous accomplishments.
There’s an old saying in the market that if your winners are outperforming your losers, you’re doing a great job. Through November of last year, 87% of all hedge funds were underperforming a broad market benchmark. And yet, nearly every single one of the holdings in our Best Ideas portfolio is outperforming the benchmark. From Apple (AAPL) and Altria (MO) to Precision Castparts (PCP), Visa (V), and Rio Tinto (RIO), we have delivered. You’ve received transaction alerts for eBay (EBAY) when it was in the low $30s and EDAC Tech in the single-digits—just a couple more examples. Look at Ford (F) in the past couple weeks! There have been no surprises. Everything we have said we would do for you, we have delivered.
We’re often asked: what’s the best way to use our process? You can read the answer here, but the best way to observe what we’re doing is to look at our portfolios (the Best Ideas portfolio and Dividend Growth portfolio). We are using our very own process to generate outperformance in our newsletter portfolios and deliver on our goals to you. There is nothing secret—we are not a black box. If you are not reaping the rewards that we are working so hard to deliver to you, you are not capitalizing on our process and efforts.
We can’t begin to tell you how many members that we have lost in the past several months because they have been impatient with our call on Google (GOOG), didn’t like the action in Intel (INTC) or Apple, or didn’t want to stay with us (for one reason or another). Or, in other cases, they just didn’t feel as though our product was differentiated or didn’t use it enough to justify its best-in-class cost (other research firms nickel-and-dime you—we give our very best to you at one third the cost).
We often wonder: given the academic support and empirical track record of our portfolios, how could investors have a different strategy than ours? Not why, but how. We do competitive advantages, we do valuation, we do the DCF, we do relative value – we do it all. By definition, the Valuentum strategy overlaps all viewpoints to identify the best ideas.
And we often ask: why wouldn’t those that don’t use our research as much, just use our research and analysis more? We’re obviously doing something right. Some of our biggest fans have even stated after reading our academic white paper: Is there even another way out there to invest than Valuentum?
In the very few calls that have taken some time to work out, Google is now approaching all-time highs again, and we are up over 7% since we added it to our Best Ideas portfolio. Intel has had some tough sledding as of late, but the stock yields nearly 5% and is ridiculously cheap, with significant potential in the mobile market (once its R&D efforts come to fruition). The put options in our portfolio are mere tactical strategies to protect capital that is a hundred times its value in the wake of uncertainty. The weightings in our portfolios have valuable insights in assessing our conviction in our ideas.
The biggest value of a subscription to our website is our judgment. We think most members that stay with us value our judgment. And other members that may decide that we’re not a good fit, place other factors above judgment.
In this day-and-age, however, there is plenty of free information out there, and everyone has an opinion. You shouldn’t pay for historical dividend data that’s available elsewhere for free or for easy site navigation because you can find what you’re looking for easier. These are just the costs of doing business. That stuff isn’t worth paying for.
And don’t get sucked in by other firms that send you hundreds of stocks and only highlight the winners to you after the fact (and hide the losers under the rug). You have to know the games that other research firms play with you.
Choose judgment, transparency, outperformance, future projections and analysis (not historical data), and a balanced and objective process that has unique indicators and tools that you can’t find anywhere else. Choose Valuentum.
We know investing is not easy. We are working hard for you to make it as easy as possible.