There are many ways to approach value investing. Traditionally, value investors analyzed corporate balance sheets and tried to identify tangible assets. A value stock was one that was cheap relative to those assets. Their goal was to eliminate as much risk as possible.
A new method of value investing is emerging. Value investors are now turning to corporate income statements looking for stocks selling cheap relative to their earning power. The challenge is to identify those stocks with great earning potential and have attractive P/E ratios.
To meet this challenge Waverley Research developed an algorithm to identify strongly financed growing companies that are undervalued by the market concentrating on a small number of stocks at a time, namely, those stocks listed on the Dow Jones Industrial Average (DJIA).
This algorithm generates the Waverley Research Selections that we offer for consideration.
The Waverley Research investment approach as outlined in the "Utilizing the Waverley Research Selection" section is a buy, hold and rebalance strategy. Investors need to adapt to changes in the market and therefore need to review their investment plans/stock selections annually to ensure that their underlying assumptions haven't changed significantly and make changes that are reflective of those as they happen.
You have questions. We've got answers.
Here are the most frequent questions and aswers from the last decade.
Waverley Research offers you powerful, quantitative investment research to help you make better investment decisions and to succeed in meeting your investment objectives.
Visual comparison of how the Waverley Research algorithm and our buy, hold and rebalance strategy generates extraordinary total returns and consistently outperforms the Dow Jones Industrial Average.
To be a successful investor you need a trading system with profitable expectations, sound money management and the fortitude to trade consistently. This section illustrates the Waverley Research system and the process used to calculate returns.
Following the development of our algorithm and before offering our selections to the public we conducted extensive back testing examining both long term and recent past performance to determine how our strategy holds up in various markets. Our back testing results are quite impressive. The complete back testing performance charts and graphs are presented in the tables in this section.
The key to successful investing is to make long-term investments in quality companies. We strive to provide our customers with quality investment research and superior service. If we are successful in adding value to our customer's portfolios, our business will continue to grow and, more importantly, we will have done the right thing.