Deep Blue of Stock Picking
Brought to you by Validea
How would you like to pick your stocks using a computer algorithm that mimics the 10 greatest investors of all time?
Sound far-fetched?
It has actually earned up to 146% in profits since September 2010.
In a world where computers can answer telephones, give directions, build cars, perform surgery guide missiles and regularly do the "impossible," this is just the next logical step.
Remember Deep Blue, IBM's formidable chess computer that beat Grandmaster Garry Kasparov in a famous series of matches?
Until Deep Blue came along, even life-long programmers believed there was no way a computer could think "intelligently" enough to beat a human in chess.
After all, the number of possible moves is astronomical. Even a supercomputer can't evaluate all of the options.
So Deep Blue didn't even try to. Instead of looking ahead, Deep Blue looked into the past… into the hundreds of thousands of classic chess games stored in its data banks.
In other words, Deep Blue's computer algorithm tapped into the intelligence of the greatest human players who preceded it.
In particular, it knew every single move played by Garry Kasparov's toughest competitors.
Deep Blue also knew every chess move that Kasparov had ever made, enabling it to identify trends, strengths and weaknesses. It was almost as if Kasparov was playing himself – the computer used its stored information to mimic some of Kasparov's favorite moves and gain an advantage.
And now this same kind of artificial intelligence has come to investing...
Our unique stock-picking algorithm uses the strategies of 10 of history's greatest investors – not just Warren Buffett, but Benjamin Graham, Kenneth Fisher and seven more legendary wealth-builders – to locate the very best stocks in the market.
Put Our System to the Test
You can give Validea South Africa a test drive without risk – because Sanlam iTrade is picking up the cost on behalf of their clients for the next 6 months.
As a subscriber to Validea South Africa, you will receive the following benefits:
We think that you'll love it... but that's up to you to decide once you've experienced the fat gains of the "Hot List" for yourself.
Meet Your Dream Team: Put the Guru Strategiesto Work for You…
Warren Buffett: The Berkshire Hathaway chairman has generated 24% annualized returns for more than three decades with his value-focused, patient, long-term approach.
Peter Lynch: Lynch's Magellan fund gained an average of 29.2% over more than 13 years – just about doubling the broader market's gain – by using a "growth at a reasonable price" strategy.
Benjamin Graham: Known as the "Father of Value Investing" – and Buffett's mentor – Graham posted per-annum returns of about 20% from 1936 to 1956, far outpacing the 12.2% market average.
Martin Zweig: During the 15 years that it was monitored, Zweig's stock-picking service returned an average of 15.9% per year by finding strong growth stocks. It ranked #1 out of more than 100 competitors for risk-adjusted returns over that long period.
John Neff: Over a remarkable three-decade run that began in 1964, Neff guided the Windsor fund to a 13.7% average annual return, easily outpacing the S&P 500's 10.6% return during that time with his value-based approach.
Kenneth Fisher: The author, Forbes columnist and money manager pioneered the use of the price/sales ratio, and his Forbes picks have nearly doubled the S&P 500's gain since 1996.
James O'Shaughnessy: O'Shaughnessy's examination of historical stock market returns ranks among the most in-depth ever. His back-testing identified a growth/value hybrid approach that beat the S&P 500 by more than 5.5 percentage points per year over more than four decades.
David Dreman: This contrarian guru managed one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services.
Joel Greenblatt: In his Little Book That Beats the Market, hedge fund manager Greenblatt laid out a stunningly simple way to beat the market using two – and only two – fundamental variables. It produced back-tested returns of 30.8% per year from 1988 through 2004, crushing the S&P 500's 12.4% return during that time.
Joseph Piotroski: This little-known accounting professor wrote a highly influential paper that laid out an accounting-based value-investing method that produced 23% average annual back-tested returns over a two-decade period – more than doubling the S&P 500's gain.
Eight out of our 10 portfolios have beaten the market over the past 3 years – most of them by huge margins. Our Neff & Fisher-based funds are our only underperformers of the 10, mildly trailing the JSE Return.
Take a peek inside to see if you like what you see...
To experience the Validea Guru Portfolios you need to log in on www.sanlamitrade.co.za as a client. Click on the Share Data/Charting link on the Top Menu Bar and then click on the Validea link. If you are not a client you can register as an iView client with us and use it at no cost for a month.
Disclaimer:
Validea is an independant service provider and views expressed by Validea are not always that of Sanlam iTrade. The information presented on this website does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information on this website is generic by nature and is not personalized to the specific situation of any individual. The user therefore bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional prior to making any investment decisions.
Performance results are based on model portfolios and do not reflect actual trading. Returns for both the model portfolios and the comparable benchmarks do not include dividends. Returns for both the model portfolios and the comparable benchmarks do not include dividends. Actual performance will vary based on a variety of factors, including market conditions and trading costs. Past performance is not necessarily indicative of future results.
The names of individuals (i.e., the 'gurus') appearing in this report are for identification purposes of his methodology only, as derived by Validea South Africa from published sources, and are not intended to suggest or imply any affiliation with or endorsement or even agreement with this report personally by such gurus, or any knowledge or approval by such persons of the content of this report. All trademarks, service marks and trade names appearing in this report are the property of their respective owners, and are likewise used for identification purposes only. Market Statistics are calculated by McGregor BFA and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.