Price is what you pay, Value is what you get.Warren Buffett
Eventually everything trades at its fair value...Zerohedge
Grufity's Fair Value Picks Have Outperformed S&P500 for Three Years in a row
Grufity's Fair Value model takes all the S&P 500 stocks and divides them into separate buckets based on their attractiveness. The S&P 500 stocks put in the 'Very Cheap' bucket by the model have greatly outperformed the overall S&P 500 Index. Conversely, S&P500 stocks considered 'Very Expensive' by the model significantly underperformed the S&P500 index in the past three years. This shows the power of the model's valuation ability.
Returns of $10,000 invested in:
Very Cheap Stocks: $17,289
S&P 500 Index: $12,922
Very Expensive Stocks: $11,022
Grufity's Fair Value model does a great job in separating High Performing Stocks from Low Performing ones in the S&P 500 list.
Stocks Marked 'Very Cheap' by Grufity's Fair Value Model Have Easily Outperformed Russell 2000 Index
Grufity's Fair Value Picks have solidly outperformed Russell 2000 for Three Years in a row| 2021 | Returns | |
|---|---|---|
| Very Cheap | 62.0% | |
| Russell 2000 | 14.5% | |
| Very Expensive | 5.6% |
| 2022 | Returns | |
|---|---|---|
| Very Cheap | -3.5% | |
| Russell 2000 | -21.6% | |
| Very Expensive | -33.2% |
| 2023 | Returns | |
|---|---|---|
| Very Cheap | 39.8% | |
| Russell 2000 | 15.1% | |
| Very Expensive | 16.6% |
Grufity's Fair Value Model Really Shines in Mid Caps and Small Caps
Small Caps and Mid Caps are mostly overlooked by investors as all the focus goes to Magnificent 7. These stocks are not part of the market's beauty contest and require a deeper look. Grufity's Fair Value Model opens up this universe of Mid-Caps, Small-Caps and Micro-Caps for investments as it separates high-performing, rewarding stocks from the low-performing, risky ones. Russell 2000 stocks that were marked 'Very Cheap' by the model doubled in three years while the index was flat.
Returns of $10,000 invested in:
Very Cheap Stocks: $21,859
Russell 2000 Index: $10,334
Very Expensive Stocks: $8,224
Russell 2000 stocks considered 'Very Cheap' by the model greatly outperformed Russell 2000 index and the 'Very Expensive' bucket over past three years.
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