by CI Staff
GuruFocus.com is a website devoted to value investing and the idea that individual investors might benefit from selecting stocks that have been researched and chosen by the best investors in the world, such as Warren Buffett and Peter Lynch. GuruFocus.com tracks these investors’ stock picks and portfolio changes, offers stock screens based on their methods and provides articles to help you become a better investor. In addition, GuruFocus.com explains why these Gurus made the decisions they did and how they came to their conclusions.
Although many argue against following gurus, founder Charlie Tian, Ph.D., cites a quote from Isaac Newton to explain his perspective: “If I have seen further, it is by standing on the shoulders of giants.” Though it may not always be the best investing strategy, following gurus is a great place to start for investors, especially those making random speculative decisions, such as buying a stock simply because its price is incredibly low.
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For those who do not necessarily wish to mimic one particular investor or those who want to choose their own investments, GuruFocus.com’s All-In-One Guru Screener is an outstanding feature. Users can select a variety of criteria from advanced, such as the Altman Z-Score and the Shiller P/E ratio, to generic, such as price and yield. The list of passing companies is updated as the criteria is selected. The default view, Active Filters, shows the companies and their data as it relates to the screen’s criteria. Users can also choose a variety of views, such as Valuation, Growth, Insider and more. The Guru Consensus and Guru Buy/Sell views specify which gurus like a company, whether they rate it a buy or a sell and the company’s performance since the guru made the recommendation. Selecting a guru’s name will display his or her stock picks, their performance, the guru’s sector weightings, news related to him or her and more related information.
After constructing a portfolio, GuruFocus.com allows users to monitor their portfolios directly on the website. That way it is easy and quick to identify if a guru changed his or her recommendation on a particular security, for instance.
The website’s articles are also quite useful, as novice investors can read up on measures used in the screening tool, such as the Shiller P/E ratio, or general informative articles, such as on hedging a portfolio. In the Articles tab, users can also find guru interviews, videos and research.
GuruFocus.com is a service well suited to investors who trust and value the opinion of big name investors. Since the premium membership is a pricey service and the free seven-day trial requires a credit card, individual investors should first try the free membership. It provides very limited information, but is still a good place to start.
Price: $289 per year premium membership; free 7-day premium membership trial (credit card required); free limited membership