A new but timeless strategy and mindset that should greatly help investors lower downside risk while achieving market outperformance.
In The 52-Week Low Formula: A Contrarian Strategy That Lowers Risk, Beats the Market, and Overcomes Human Emotion, wealth manager Luke L. Wiley, CFP examines the principles behind selecting the outstanding companies and great investment opportunities that are being overlooked. Along the way, Wiley offers a melding of the strategies used by such investment giants as Warren Buffett, Howard Marks, Michael Porter, Seth Klarman, and Pat Dorsey. His proven formula helps investors get the upper hand by identifying solid companies that are poised for growth but have fallen out of the spotlight. Shows you how to investigate companies and identify opportunities. Includes detailed discussions of competitive advantage, purchase value, return on invested capital, and debt levels. Presents several case studies to examine companies that have overcome obstacles by trading around their 52-week lows.
The 52-Week Low Formula is a must-listen for investors and financial advisors who want to break through conventional strategies and avoid common mistakes.
Luke L. Wiley
Audible Audio Edition
Most Helpful Customer Reviews
The author has created a well thought out and logical value investment strategy. He did a great job supporting the strategy with lots of verifiable information and resources. I think most experienced investors could successfully employ his methods with acceptable results if they were to strictly follow his filters, as long as the author will disclose all of them in the future. I only have two criticisms. First, he spends too much time talking about his personal journey. This is understandable though. He is in sales and I'm sure the book is part marketing for his services. But this criticism doesn't diminish the quality of the investment strategy or his description of the strategy, which is excellent and easy to follow. But I think the people reading this book will probably be more advanced investors and will want to spend more time on the strategy versus the author's personal journey. My second criticism is on his description of "Filter 1: Competitive Advantage". I...
I was a hedge fund manager for years, before that a pit trader on the CBOE. Now I am retired and trade my own account. Over the years, I have accumulated a large library of investment books, and I am always on the lookout for new ideas that are clearly presented and can hold up against intense scrutiny. While not exactly "new", The 52-Week Low Formula is rock solid in presenting and defending its thesis, which is to buy fundamentally solid stocks that are temporarily out of favor. The comparisons would be the Dogs of the Dow strategy (much too limited, and without the proper filters), and Joel Greenblatt's Magic Formula (probably the closest comparison). Where Greenblatt's strategy is basically a two-factor model, Luke Wiley uses a five-factor strategy. One of the factors isn't really a quantitative factor at all--the company should have a sustainable competitive advantage or what Buffett calls "a moat." The investor needs to do an intuitive screening here--it's really a yes or no...
If companies like P&G, MCD, DIS or JNJ sound familiar to you that not so long ago were hated and unpopular to Wall Street, but everybody knew they were great companies and sooner or later would rebound from their lows (as they did), then this book will be of interest to you because it helps to identify companies with the highest probability of success due to their sound fundamentals that are trading near their lows while discarding the rest.
Identifying a company's advantage is no easy task and it's subjective most of the times, but one of the advantages of the methodology outlined in the book is that the process is redundant regarding the Moat, ie, every filter we use, each step we move forward means there is a high chance that a competitive advantage exists.
If you have seen great quality companies with little or no debt, falling near their 52 week lows and after a while bounce back and felt sorry for yourself because you knew all along that they were great...
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