In Canada’s Globe and Mail, David Parkinson takes a look this week at Validea Canada’s guru-inspired investment strategies.
“One of the problems with pursuing a specific investing strategy — even one supported by the proven successes of one of the most revered investing minds on the Street — is that it rarely works best in all circumstances,” Parkinson writes. “Depending on the market conditions, it may be more profitable to be a growth investor, in others a value investor. In some cases, it might work to be a momentum investor, in others a contrarian investor. And stocks that fit well with one successful strategy might be a poor fit in another.”
“But what if you could hedge your strategy bets — play multiple strategies at once?” Parkinson adds. “That way, even if one approach to the market is stumbling, your portfolio might still have strength in an alternative approach. The folks at Validea Canada have an online tool that aims to do just that.”
Parkinson keys in on the 10 stocks in the Canadian market that get interest from four or more of Validea’s Guru Strategies, which include models based on the approaches of such legendary investors as Benjamin Graham, Warren Buffett, and Peter Lynch.
In a follow-up article, he looks at Validea’s “Top 5 Gurus Portfolio”, a 10-stock portfolio that uses five top-performing guru-inspired strategies to pick two stocks each.