This is how $100 in the long-run-plan stocks portfolio has grown since its launch in 2004, compared to the stock market.
The LongRunPlan portfolio is a value investing stock portfolio composed of high-quality companies, traded on US Exchanges that were very selectively chosen and bought at large discount below their fair value. What is a large discount? We like buying a dollar and paying only 50 cents for it, i.e. buy a stock for less than half the price of its real worth. This large Margin of Safety increases your chances to profit from your stocks even if you missed something in your analysis or valuation process.
The portfolio yielded a +20% annual return since launched in 2004 (in Hebrew, and the English version was initiated in January 2016).
Our investment philosophy
We apply the common value investment strategy that is based on “buy at a low price and sell for the fair value”, so after purchasing the shares, we hold on to them patiently for as long as necessary, until they are back to their fair price. Statistically, it takes a stock 1-3 years to close the valuation distortion, and indeed an average stock is held for about 2 years. However, there are cases where stocks continue to be attractive and held for a longer period of time.
These are the principals that have worked great for Warren Buffett and other gurus for decades, so we implement them in our portfolio as well:
- Manage a portfolio of about 15 shares.
- Choose quality companies without high debt.
- Focus on deeply undervalued stocks.
- Invest in growth companies from sectors with increasing demand.
- Keep an eye on spinoff stocks (why?).
- Hold stocks patiently, even for a few years.
- Don’t buy and sell too often.
- Ignore economic events and negative news.
- Take advantage of market volatility (buy when everyone is selling and sell when everyone is buying).
Following our portfolio
Following and copying our portfolio is very simple.
We send you an alert by email or text message if you prefer for every stock that is bought or sold, combined with a detailed review of the company and its stock valuation, so you can decide whether to buy it to your own portfolio.
If you’re a passive investor that doesn’t want to work hard analyzing companies and stocks, just buy and sell when we do it. If you’re an active value investor then use our stocks as initial ideas and do your additional research as you prefer.
Whatever way you choose to go, if you are a patient investor who wants to build an intelligent portfolio that has the potential to constantly beat the market for the long run, we believe that this portfolio will be very useful for you.
The site has over 400 members who are following my portfolio, so it is likely to be useful to you as well.