This is my GuruFocus Review. In this blog post, I would like to share with you a website that I have used and have benefited greatly in my journey as a value investor.
What is GuruFocus
GuruFocus is owned by GuruFocus.com LLC, which is a Texas Limited Liability company in Plano, Texas. This company focuses on featuring reliable financial news, authentic commentaries, and thorough research and publishing. It’s a Better Business Bureau accredited institution with a soaring A+ rating.
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GuruFocus started in 2014 and was founded by Charli Tian, Ph.D. Its main goal is to help investors take less risks by investing in the right stocks that have been meticulously researched by the world’s best investors. To do this, GuruFocus.com keeps track of the portfolio changes and stock picks of the best investors on the planet, including Warren Buffet.
GuruFocus believes in the power of value investing. As what Warren Buffet said, value investing is the sole winning formula to flourish in the long-term game. Value investing is basically the tactic of choosing a stock that trade for less than its intrinsic values. Value investors are keen in looking for stocks of companies which are deemed “undervalued”. Investors who think this way believe that the market just overreacted to the good news and bad news, leading to a stock price movement which doesn’t really match the company’s long-term qualitative and quantitative information. This is an opportunity for investors to enjoy huge profits by buying stocks when the prices are already deflated.
This is just one of the many important scopes that GuruFocus keeps an eye on. The company is currently enjoying heavy traffic because it hosts countless value screeners and awesome research tools and constantly publishes valuable articles about value investing tactics. One can maximize the features and benefits of the site if he invests on the site’s Premium Membership.
The cost for US membership is $349 per year. There’s an additional fee if one subscribes more regions, like Asia, Canada, Europe, etc. You can check out their Membership Levels for more information.
Features and Benefit of GuruFocus.com
To help you gauge if the site is worth subscribing for, here are some of the features and benefits as well as bits of its pros and cons.
This is usually the main reason many people like subscribing in this company. It’s primarily because it’s super easy to use. Unlike other screeners that require a long learning curve and programming abilities, GuruFocus’ screener has a very user-friendly interface.
Here’s a sample:
Guru Focus Stock Screener
Here’s a small filter for small companies with $500M maximum market cap, low equity/ debt of 60% or less, paying a high dividend of at least 5%.
Another reason their screeer proves to be spectacular is the number of its screening criteria. Here’s a partial list of the detailed criteria:
- Inside and Institutional Ownership
- Fundamentals, such as P/E, Price-to-book, and Return on Equity
- EV/EBIT (the price ratio of enterprise value to earnings before taxes and interest)
- Beneish M Score
- Gross, Operating or Net Margins
- Market Cap to Net Current Asset Value
- Stocks at All-Time Highs or Lows
- Guru and Insider Buy/Sells
- Short % of Float
- Criteria for Shorting
- Dividend Yield
- Piotroski F Score
- Share Buybacks
These criteria are even broken down further, making users enjoy highly detailed filtering.
Guru and Insider Trades
If you are interested in the latest picks by value investing tycoons like Warren Buffett, David Einhorn, John Paulson, and George Soros, GuruFocus has all of them. You could see outdated portfolios for free, but you’ll get full access to the latest information if you choose to subscribe.
Warren Buffett Latest Trades and Portfolio
GuruFocus has lots of model portfolios that are based on certain criteria. You could use these to get some ideas for possible companies to buy.
You can even use the portfolios as part of your mechanical tactic. As you may have known, portfolios bought by the use of a strong system could really outperform the market. As you follow a model portfolio, you can eliminate all the biases and follow objectively proven strategies which have all been historically market-beating.
Here are some of the portfolios the company offers:
- CEO Buying
- Insider Cluster Buying
- Guru Consensus Buys
- Undervalued Predictable
- Low Price-to-Book
- Short-Only Portfolios
- Low Price-to-Sales
As you can see here, the value strategies have quite done well:
Articles, Videos, and Newsletters
Many articles and stock picks, even guru interviews which are all worth the read. Every month, there are 2 in-depth analyses of existing companies that successfully meet Buffet’s fundamental criteria for investment: shareholder equity every year and long term track record of increasing profitably.
Financial Data and Ratios
You can actually access free sources of financial information all over the web, but GuruFocus remains a valuable choice because of its great user interface, extensive historical data (which goes back a full 15 years), and the number of ratios and statistics involved, like EV/EBIT, Z-score, M-score, Graham Number, F-score, and Share Buyback Ratio.
GuruFocus is generally reliable, but like any other companies it can also experience certain inaccuracies. An example is their microcap data. Also, there are some slips in their periodic inside ownership percentage inaccuracies and some short % of float (sometimes inaccurately listing at 0). You can treat all the information as accurate. However, it’s always a wiser move to double-check specific data before buying. Despite this, these can be regarded as minor flaws that can really be outweighed by the site’s more compelling perks.
And if you are into International Markets, GuruFocus got it covered as well. It can cost more if you want a wider access of international data. Nevertheless, the cost is still better than other companies. At GuruFocus, you can access data from Asia, Canada, Europe, Latin America, Oceania, and Africa. You can get to increase your investable universe with such a vast scope of information. One good thing about international investing is the net current asset investing. This tactic has boosted returns to over 20% in most studies.
The con is that there are limited US-listed companies which meet the NCAV criteria. A good solution is to follow extra means to expand your investable universe.
GuruFocus Review: Verdict
There are currently a lot of free and subscription data and information services that you can choose from. What sets GuruFocus apart is its premium interfaces, remarkable screening capacities, updated guru/ insider trades, all-inclusive data and ratios, and model portfolios. Their customer support is also highly responsive. If you are serious in achieving success financial success through value investing, you need to invest in the right resources that can really help you get there. GuruFocus is clearly one way to get started.