Life after growth investing; Explore value investing using this new stock tracker app.
Growth investing is a stock-picking strategy where you pick stocks based on (earnings) growth expectations. However, increasing interest rates makes generating growth more expensive and thus those types of stocks are less lucrative nowadays.
In contrast, value investing is an investment strategy where you pick undervalued stocks that get their worth out of their current profitability instead of their growth potential. These types of stocks generally perform better when the cost of capital is increasing.
To find good value investing stocks, you can use my embedded stock tracker app below. The app dynamically calculates the top 25 stocks according to Joel Greenblatt’s Magic Formula from “The Little Book That Beats the Market”. You may need to wait a few seconds for it to load…
Joel Greenblatt’s Magic Formula intends to identify undervalued, but well-performing companies to invest in. The formula is based on two key metrics: Earnings Yield (to find undervalued stocks) and Return on Tangible Capital Employed (to identify efficient, profitable companies).
Companies that rank well on both metrics are expected to outperform the stock market. However, be sure to read the financial reports and form your own opinion before actually investing in any of these stocks!
Follow my blog if you like to read my in-depth analyses of specific stocks. Also, stay tuned if you would like to hear more about how I built this app, and “Free Money Stashes” and “Free Money Generators” opportunities in the stock market. No rights can be derived from this blog or app. Information is provided ‘as is’ and solely for informational purposes, not for trading purposes or advice.
