Revamped AAII Stock Ideas

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Five-Cent Spread Program on Small-Cap Stocks Ends The U.S. Securities and Exchange Commission (SEC) terminated its small-cap stock pilot program which mandated minimum quotations and trading increments for stocks of certain smaller companies. Companies Surpassing Industry Norms These 15 stocks are cheaper than their peers…

 

Selecting Stocks From a Screen

I’ve long been a fan of stock screens. They filter a database to identify stocks with specific traits. A value screen may identify stocks trading at low price-earnings (P/E) ratios with above-average levels of return on equity (ROE). A growth screen can find stocks that consistently grow profits and are projected to continue doing so…

 

The January 2018 AAII Journal is Now Available Online.

  Feature Article » Polar Opposite: MAGNET Complex Goes From Bottom to Top in 2017 by Wayne A. Thorp, CFA Our annual review of the AAII screening strategies finds MAGNET Complex on top after being the worst performer in 2016.   Portfolio Strategies » Insights on Using the 4% Withdrawal Rule From Its Creator by…

 

Driehaus Screen for Growth and Momentum Stocks

Momentum investors seek rapidly growing companies with prices to match. Their hope is that continued growth will attract additional investors who will continue to drive up the stock price. That investment philosophy, centered on earnings growth, underlies the approach used by Richard Driehaus, who was named to the Barron’s All-Century Team of All-Stars in 2000….

 

Tweedy, Browne: “What Has Worked in Investing”

Many individual investors embody value investing—Benjamin Graham and Warren Buffett immediately come to mind. Among investment management firms, perhaps none is as devoted a follower of the principles of value investing as Tweedy, Browne Company. In his book “Smarter Stock Picking” (FT Press, 2010), David Stevenson wrote: “Graham may be the patron saint of most…

 

Screening for Stocks Based on the Latest CAN SLIM Criteria

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Focus on the Value of a Business, Not the Stock’s Valuation Valuation ratios do not tell you what you are getting for your money, whereas intrinsic value allows you to assess the stock’s potential. Rupal Bhansali, manager of the Ariel International (AINTX) and the…

 

Going From a Stock Screen to a Real Portfolio

Not all that long ago, “stock-picking” entailed tedious, relentless research. In order to get the complete financial picture of a firm and its shares, individual investors had to scour the pages of financial newspapers or pore over scores of thick, dull annual reports. You either spent hours upon hours in the local library or you…

 

How I Choose a Stock to Buy or Sell

This week I subbed in for Charles Rotblut on the weekly radio show MoneyLife with Chuck Jaffe. Each week Charles chooses a “buy of the week” and a “sell of the week” and provides some editorial guidance on his reasoning. In order to prepare for the interview, I had to think, “what qualities do I…

 

AAII Journal January 2017 Issue Now Available

Feature Article: Downward Estimate Revisions Screen Tops Unconventional Year Bucking its historical trend during a year marked by unusual events, Estimates Revisions Lowest 30 Down was the top-performing AAII screen of 2016.   In This Issue: Stock Strategies: Deep Value Investing Has Not Gone Out of Style An updated version of Benjamin Graham’s Deep Value…

 

David Dreman’s Contrarian Approach to Stock Selection

David Dreman is a famous investor whose name is linked with the definition of “contrarian.” Contrarians think independently, as opposed to going along with the crowd. Dreman feels that irrational behavior in the markets tends to push a stock’s value away from its true value. The savvy contrarian investor executes a value investing approach with…