Frequently Asked Questions

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You have questions. We've got answers.

Here are the most frequent questions and aswers from the last decade.

Why consider Waverley Research?

Waverley Research is an independent research service developed for investors that use the internet. We have spent years honing an algorithm that identifies quality investment selections. Our goal is to improve your upside potential and help manage your downside risk in challenging markets. Waverley Research offers a proven method to give investors an opportunity to outperform the market over a long period of time.

Is Waverley Research registered as a securities broker/dealer or an investment advisor with the US Securities and Exchange Commission or with any state securities regulatory authority?

No, Waverley Research is strictly a financial publisher and therefore is not legally permitted to offer personalized trading or investment advice to our subscribers. The material provided on our site is for general information purposes only and should not be construed as investment advice. No information on this site is intended as securities brokerage, investment, tax, accounting or legal advice or as an offer or solicitation of an offer to sell or buy, as an endorsement recommendation or sponsorship of any company, security or fund.

Why do most financial professionals fail to outperform the market?

Most professional portfolio managers or financial advisors fail to outperform the DJIA consistently over time. This fact surprises most people. A major reason is the short-term focus that most professionals have developed. Their focus has become who has outperformed the rest last quarter instead of who provides the best long-term returns.

Another factor contributing to their underperformance is that these same professionals have made the process complicated and have convinced us that investing is to complex a business to be left to the average person.

Contrary to this thinking, Waverley Research believes that discipline and patience are the cornerstones for successful investing. Our algorithm and disciplined approach to investing can help you to outperform the market by managing your own simple portfolio of top quality stocks.

Why does Waverley Research employ a value investing strategy?

A value-oriented approach to stock selection is considered a conservative strategy. Owning undervalued quality stocks is a low risk method for seeking superior long-term returns. These stocks tend to be less susceptible to price declines in volatile markets because expectations about performance are already low.

Why does Waverley Research focus on the thirty stocks that comprise the Dow Jones Industrial Index?

The success Warren Buffet has experienced is based on three basic principles. Is the company in which you are investing simple and understandable? Does the company have a consistent operating history? Does the company have favorable long-term prospects? The Dow Jones Industrials represent an elite club of the titans of industry. By investing in stocks from this exclusive list you know you are investing in quality companies. These stocks represent well-known, mature companies that have strong balance sheets with sufficient strength to ride out rough times.

How did you test the validity of the Waverley Research algorithm and model?

To ensure the validity of our algorithm we applied our model on out-of-sample data. This was accomplished in two ways. First, we ran the algorithm over a different period of time than was used to develop our model. Second, we used different times of year to start and re-balance the portfolio.

How are returns calculated?

Annual returns for the Waverley Research Selections were calculated by taking opening period prices, subtracting them from the price at the end of the period, adjusting for any stock splits and adding dividends received for the period. A period consists of one year.

Historical returns represent actual stocks and real time. They are the results you would have obtained had you been invested in those stocks in those years.

All returns are expressed before commissions or taxes.

How do I incorporate the information provided by Waverley Research into my investment strategy?

Benjamin Graham wrote "Investing is most intelligent when it is most businesslike." It is critical that you understand a company's market standing, earnings potential and management skills to evaluate whether you should invest in its stock.

Waverley Research recommends that you evaluate our selections to determine if their level of retained earnings, their trends in earnings, their return on shareholder equity, the level of spending needed to maintain current operations and their use of retain earnings satisfy your investment criteria.

Why does Waverley Research use a disclaimer?

There is a disclaimer that every mutual fund, financial analyst and brokerage house in the country have to use in its sales literature: "past performance is no guarantee of future results." Keep this warning in mind as you study your investment options. The greatest stock picking method cannot predict the future. Waverley Research cannot know what the stock market is going to do tomorrow, let alone a year or two from now.

We encourage our subscribers, and visitors to our website, to invest carefully and to utilize the information available on the websites of the U.S. Securities and Exchange Commission at and the National Association of Securities Dealers at The required filings of publicly traded companies are available at the SEC's EDGAR page at

Will my registration information remain confidential?

Your privacy is important to us. Information we gather during the member registration process is strictly confidential and is not sold or distributed. Your email address is collected to allow you to receive Waverley stock selections and updates.