iStockResearch Wealth Management

iStockResearch

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Professional WEALTH MANAGEMENT from iStockResearch without restrictions on YOUR use of YOUR MONEY – CLICK HERE

Wealth Management by iStockResearch

iStockResearch offers you a unique opportunity to profit from our expertise in choosing fundamentally undervalued stocks. Recently we introduced a unique program which allows you to hand over to us management of your money while retaining full control over it at all times. There is no lock-up, hold-out or any other restriction on your use of your money. It is very simple, easy to implement, and, most importantly, very reliable and safe. Also, you will have complete information of all transactions where your money is involved as they happen. You even will have the power to stop them from happening if you choose to do so (it’s your money and you are free to do whatever you want with it).

We believe that we have a competitive edge in valuation of stocks, which in combination with prudent portfolio management allows us to generate superior returns. We invite your to join us in sharing benefits of this. If you are interested or have questions please send us a note to the e-mail address stated at the bottom of this page.

Investment Philosophy

We are value investors. All of our investment decisions are based on thorough analysis and selection of securities on the basis of their undervaluation. The undervaluation is defined as the difference between the intrinsic (or fair) value of a security determined using fundamental analysis and its market price. We strongly believe that only value investing allows achievement of consistently better-than-average (or better-than-market) return on invested capital with lower-than-average (or lower-than-market) risk.

We are true disciples of Benjamin Graham, David Dodd, and Warren Buffett, and use the concept of margin of safety in all our investment decisions. However, our proprietary stock valuation model and other techniques used in determining intrinsic value of a security go far beyond the traditional methods used by value investors. Specifically, we extended application of the value concept to valuation of fast-growing companies.

As a matter of principle and prudent (read: “conservative”) handling of risk, we do not employ leverage. In regard to the investment horizon, we are aware that it takes time for a fundamentally-undervalued stock to approach its intrinsic (or fair) value. However, a well diversified portfolio of undervalued stocks is almost guaranteed to outperform the market in any given period.

Investment Strategy

We believe that in order to make money in the stock market, an investor should buy quality stocks with high upside potential and hold them till they reach an upper limit of their valuation range. This could take years, especially for stocks of companies which consistently increase shareholders’ value, and for which the upper valuation limit is constantly adjusted upwards. Frequent reshuffling of a portfolio leads to higher transaction costs. Also, more important, because such reshuffling is usually done to sell stocks which have substantially appreciated in value and buy stocks whose performance has bee lagging, this results in capping gains on good performing stocks and extending losses on underperforming ones. This is a loosing strategy, even though intuitively it seems to fit the paradigm of buying low and selling high. What usually happens is that rising stocks continue to rise and falling stocks continue to fall.

However, it is also true that if a stock has been a Wall Street darling for a few years, its market valuation begins to far exceed any reasonable optimistic fundamental valuation of the stock and its price is doomed to come down sooner or later. The same extremes, but in the opposite direction, are also common to underperforming stocks. Such market aberrations happen all the time. However, stock overvaluation or undervaluation cycles do not warrant frequent reshuffling of a portfolio.

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