As promised, we’re launching a comprehensive Passive Strategies section for our premium members real soon (check the “Strategies” in the upper menu). Passive, or automatic, strategies are based on buying a basket of 20-30 attractive stocks that were chosen according to constant value-investing screening parameters. The idea is to buy undervalued stocks of high-quality companies without the need to analyze companies or value their stocks thoroughly and replace it with a new basket of attractive stocks after 1 year.
These strategies obviously have limitations and this is why many value investors prefer an active portfolio like our LongRunPlan portfolio. Still, they are great for investors who want to beat the market without working hard as they are very simple to implement (it only requires 10 minutes once year…) and have proved to work fantastically for famous value investors, including Benjamin Graham, Warren Buffet, Joel Greenblatt and many others.
If you ask me, most of my savings are invested in an active portfolio of the best ideas that I find and bought after thorough analysis and full valuation process, but I also have a smaller portfolio that is based on net-nets and stocks from few other passive strategies. This is a great way to benefit from the advantages of both active and passive strategies.
Currently, the Strategies section contains a complete list of Net-Net stocks in all the main Exchanges around the world and soon more smart strategies will be implemented.
Here is a link to the list of net-net stocks: https://longrunplan.com/net-nets/ (requires Premium plan registration). The list is updated on a daily basis.
In case you’re not familiar with the strategy, Net-Net stocks (or net-nets) are Benjamin Graham’s deep undervalued stocks that are traded below their net current asset value (NCAV, defined as Current Assets – Total liabilities). It has been proved by many investors that a basket of net-nets is capable of beating the market dramatically.
I’ll post more details on net-nets in the following weeks and will cover the most interesting ones in the future. Meanwhile, you can read more about net-nets here.