Learn How to Analyze Stocks Using the Strategies of Buffett, Lynch ...

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Behavioral Finance: Investor Biases ◦ Over Optimism: We are overoptimistic with our estimate of how we can do and to find good stocks. ◦ Overconfidence: Overconfident that your judgment is always right and creates and illusion of control and knowledge. ◦ Recency : Peoples tendency to give too much credence to their most recent, short term experience. Rebalance Long Term All Cap Emotion Portfolio Construction ◦ Loss Aversion: Fear of losing money and subsequent inability to withstand short term events and maintain a long term perspective.
Portfolio Construction – equally weighted holdings and diversification • 10, 20 or 50 Stocks depending on multiple factors like portfolio investment size and risk tolerance • You can’t beat the market by owning it Rebalance Long Term All Cap Emotion Portfolio Construction • Equally weighted shows optimal historical performance in the Validea system. Studies have shown equal weighting can generate outperformance over market cap weighted approaches.
Page 1 and 2: Learn How to Analyze Stocks Using t
Page 3 and 4: Who: At Validea we follow numerous
Page 5 and 6: Let’s look at the quantitative st
Page 7 and 8: Methodology Example, Peter Lynch 1.
Page 9 and 10: Methodology Example, Peter Lynch 1.
Page 13 and 14: Methodology Example, Warren Buffett
Page 15 and 16: Methodology Example, Warren Buffett
Page 19 and 20: Methodology Example, Ben Graham 1.
Page 21 and 22: Methodology Example, Ben Graham 1.
Page 23 and 24: Other Key Pillars In Strategy Rebal
Page 25: To Be Successful You Need To Stick
Page 29 and 30: Key Lessons We have Learned that wi

Learn How to Analyze Stocks Using the Strategies of Buffett, Lynch ...

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