Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Love Value Investing? Here’s How You Can Outperform with 23% CAGR

Published 2024-04-05, 09:09 a/m

1. Traditional value investing requires extensive financial knowledge, but with tools like InvestingPro+, investors can harness AI for streamlined analysis.

2. ProPicks, a feature of InvestingPro+, combines AI algorithms and expert analysis to identify undervalued stocks, including the "Top Value Stocks" strategy.

3. Backed by over a decade of data, ProPicks strategies have delivered remarkable returns, with the "Top Value Stocks" strategy outperforming the S&P 500 by over 707%, making InvestingPro+ a valuable tool for time-strapped investors.

There are many forms of investing and value investing is one of them. In it, investors try to hunt for a high valuation gap, especially when the price drops noticeably but the intrinsic value stays firm. However, how would you go about doing value investing?

One way is to learn the complete valuation skill which requires a deep understanding of the financials of the company, a thorough knowledge of the business model, the ability to foresee the future trajectory, gauging economic cycles and so on. This way is generally not suited for anyone other than an astute investor.

The easiest way is to take the help of artificial intelligence (AI) which can do the job automatically for you. Yes, that’s right. In case you are wondering how to go about it, in InvestingPro+ we have introduced a revolutionary feature called “ProPicks”.

ProPicks is ProPicks Strategies utilizes a blend of AI and expert human analysis to spotlight stocks with the potential to outperform market benchmarks. It analyzes historical data dating back to over a decade and performs a test of the strategy to see the backtested results. In other words, whether what the AI is doing actually works or not can be seen through the backtesting.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

There are over 6 strategies currently available for the US market that have delivered not just market-beating results but also mind-boggling ones in some strategies.

Image Source: InvestingPro+

One strategy that is catching investors’ interest is “Top Value Stocks”. This strategy picks up stocks that are trading lower than their intrinsic value which means they're also a potentially huge bargain. Normally, combing through the entire US market for outperformers like this would be a full-time job. But with advanced AI analysis, evaluated on a monthly basis against market changes, it's child's play.

SALE: There are 5 other strategies that can be explored by InvestingPro+ users, without any additional cost. All the premium features are now available at a massive discount of over 69% for a very limited time. This investment in this tool is what investors like us who have full-time jobs and can’t take out time to do our own research. Click here to start making returns equivalent to astute investors.

Each month the portfolio is rebalanced and new stocks are added while some are removed. All stocks have a market capitalization of over $1 billion and a P/E of less than 35, apart from other parameters.

When compared with the benchmark S&P 500, there has been a huge difference in return. While the index has delivered a 267.7% return since 2013, the strategy is up by a mammoth 975.5%, that’s an outperformance of over 707%! Imagine garnering a 23.5% CAGR over a decade without putting in the effort to find such showstoppers. This return is almost equivalent to the legendary investor Warren Buffett.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

X (formerly, Twitter) - Aayush Khanna

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.