ValuentumAd

Official PayPal Seal

2019: Another Market Beating Year for the Best Ideas Newsletter Portfolio!

publication date: Dec 18, 2019
 | 
author/source: Brian Nelson, CFA
2019: Another Market Beating Year for the Best Ideas Newsletter Portfolio!
---
Summary:
---
We estimate thus far the Best Ideas Newsletter portfolio return has beat the S&P 500 by 2.8 percentage points during 2019 (34.4% versus 31.6% for the S&P 500, as measured by the SPY).
---
Our move to overweight Apple, Facebook, and Visa worked out wonderfully for members during 2019. We continue to overweight big winners, and we credit this to our team's conviction in our very best ideas.
--- 
We also made quite the savvy move in rolling over a solid gain in Chipotle (60%+) into even more shares of Apple stock during the year. We're putting some of the best ideas right in front of our membership in full transparency.
--- 
Berkshire Hathaway's overweighting added some stability to the Best Ideas Newsletter portfolio, but it was a large drag on returns during the year. This is okay - we like the diversification benefits.
--- 
2019 was a very, very difficult year to beat the market, but by our estimates, the Best Ideas Newsletter did so, and by a fair margin, particularly for a large cap orientation.
--- 
Note this kind of outperformance is unique as many money managers continue to trail their benchmarks during 2019. We credit the outperformance to our team's work ethic and the Valuentum methodology.
--- 
We are disappointed with the current state of active management, and we are working to develop solutions for our membership. We expect to roll out an important survey in the coming months.
---
We continue to encourage members to add the Exclusive to their membership, if they haven't considered this fantastic publication just yet. More on the Exclusive >>
By Brian Nelson
---
We keep on delivering for our members.
---
Thus far, 2019 has been an unbelievably fantastic year. We estimate the Best Ideas Newsletter portfolio has advanced about 34.4% so far in 2019, beating that of the S&P 500 (SPY), which has clocked in a gain of 31.6%. In the context of an active money management industry that is struggling considerably as quant and indexing proliferate, we continue to showcase the tremendous benefits of fair value investing and the Valuentum methodology. The Best Ideas Newsletter portfolio was launched in 2011, and it has built one of the best track records of any newsletter out there.
---
As you are probably aware, active management is simply not delivering for clients. Some 90%+ of active funds have underperformed benchmarks during the past 15 years, and it doesn't look like things are going that well in 2019 either. I think it is more a function of today's quantitative and index teachings and how that has spilled over into the processes of active than really anything else. Even active fund managers have fallen into the trap of "quant speak." Just turn on CNBC to see what I'm talking above ("value versus growth," "high beta," and the like).
---
I am a very strong believer in active management, true active management--actually paying attention to one's holdings and knowing them inside and out. I believe fair value investing and the Valuentum process are very sound approaches, and they are so simple, too: We answer what we think a company is worth, and then we use technical and momentum indicators to assess the likelihood of price-to-fair value convergence. I write a lot about the support for this approach in my book Value Trap.
---
I simply do not believe most of today's active management is calculating fair value estimates and overlaying extensive discounted cash-flow modeling analysis with technical and momentum indicators. These two approaches are often at odds with each other, so most money managers tend to not blend the value or "growth/momentum" sides of active within stocks, and therefore the area that Valuentum seeks to target in combining value and momentum within stocks continues to be an unexploited opportunity, in my view. We're working on developing a new solution for our members, and we will be rolling out a survey in coming months regarding this.
---
We also wanted to let you know that we have an outstanding promotion to add the Exclusive to your membership and receive a free autographed copy of Value Trap: Theory of Universal Valuation. I wrote Value Trap with the intention of getting my deepest thoughts on stock valuation to you, and I hope that you find the text extremely valuable. We've won a couple awards from the book, but I still need your help. Please give it a review or a rating on Amazon here, if you don't mind. I really want your honest opinion, and I can't thank you enough for your continued support.
---
All told, I cannot be prouder of our members and our team at Valuentum. We're doing things that are simply remarkable in full transparency, from the strength of the Best Ideas Newsletter portfolio to the success rates of Exclusive ideas to generating high quality ideas in the High Yield Dividend Newsletter to cleaning up on some of the best dividend growth ideas on the market in the Dividend Growth Newsletter. All of this plus we deliver 16-page valuation reports, supplemental dividend reports, stock screeners, ongoing commentary and access to the Valuentum team, and more. 
---
Thank you for being here! Have a wonderful holiday season!
---
Kind regards,
--- 
Brian Nelson, CFA
President, Investment Research
Valuentum Securities, Inc.
brian@valuentum.com
---
Tracking the Best Ideas Newsletter Portfolio
---
Image: Calculating estimated outperformance of the Best Ideas Newsletter portfolio thus far during 2019. Calculations do not consider transaction costs or tax consequences. Dividends collected, but not reinvested. Trading is simulated. The Best Ideas Newsletter portfolio is not a real money portfolio. 

2 Comments Posted Leave a comment

Brendan Messenger (Abilene)
Detlev Tiszauer (Livermore)
 

Add a comment:

Sign in to comment on this entry. (Required)


-------------------------------------------------
The High Yield Dividend Newsletter, Best Ideas Newsletter, Dividend Growth Newsletter, Nelson Exclusive publication, and any reports and content found on this website are for information purposes only and should not be considered a solicitation to buy or sell any security. Valuentum is not responsible for any errors or omissions or for results obtained from the use of its newsletters, reports, commentary, or publications and accepts no liability for how readers may choose to utilize the content. Valuentum is not a money manager, is not a registered investment advisor, and does not offer brokerage or investment banking services. The sources of the data used on this website and reports are believed by Valuentum to be reliable, but the data’s accuracy, completeness or interpretation cannot be guaranteed. Valuentum, its employees, independent contractors and affiliates may have long, short or derivative positions in the securities mentioned on this website. The High Yield Dividend Newsletter portfolio, Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio are not real money portfolios. Performance, including that in the Nelson Exclusive publication, is hypothetical and does not represent actual trading. Actual results may differ from simulated information, results, or performance being presented. For more information about Valuentum and the products and services it offers, please contact us at info@valuentum.com.