The LongRunPlan offers a value investing stock portfolio comprised of high-quality companies that were very selectively chosen and bought at a large discount below their fair value, and a variety of quantitative investment lists of attractive stocks based on the most successful screening criteria in the literature. All these strategies have proven to beat the market in the long run if patiently applied.
Active investors can use our portfolio and lists as a launching pad for further research, and passive or mechanical investors can choose to copy the portfolio and lists as is without the need for additional analysis.
Implementing the strategies on this site is very simple. Here’s the most efficient way to do it:
1. Open an investment account with a discount broker
There is a large variety of brokers and banks in which you can manage your portfolio. To reduce the fees and trading costs, we recommend that you open an account with a leading discount broker, for example, Interactive Brokers, or with zero commission brokers like FIRSTRADE or Robinhood. Choose only an accredited broker to ensure your money is in a safe place.
2. Building and managing your portfolio
If you’re an active investor you already know how to do it. Use our portfolio and stock lists as initial ideas and do your additional research as you prefer. Remember that an active investor holds a more concentrated portfolio so choose your stocks wisely and selectively.
If you’re a passive investor that doesn’t want to work hard analyzing companies and stocks, you must apply an automated-mechanical strategy composed of a more diversified portfolio. Thus, choose one or two strategies, either our portfolio and/or any quantitative strategy on the site, and follow them for at least several years.
If you decide to follow our portfolio, the best way is to copy it as is, meaning buying all the stocks from the list below at the same allocation we bought and keep a cash balance similar to ours. Then, hold on to them until they are out of the portfolio, usually 1-5 years after they are bought, and buy the new shares that enter the portfolio later on (For additional practical instruction about how to copy our portfolio go here).
If you follow one of the quantitative strategies, buy 20-30 stocks, hold each one for 1 year and then sell and replace it with a fresh one from the same strategy. In both cases buy all stocks at an equal amount of money.
It is wise to diversify your portfolio with stocks from all around the world, but if you prefer to go with US stocks only, that will also do the job.
3. Invest patiently for the long run
Choosing the right stocks is just half the way. To succeed in the long run you must be patient. To be patient means implementing your strategy for at least a few years whether the market goes up or down or both. So, don’t let market volatility affect your investment decisions. Hold your stocks for as long as needed and replace them with new ones when required. This is the best way to succeed in the stock market.