Validea FAQ
What is Validea?
Validea is a unique, Internet-based supplier of research and
analytical tools for the individual stock market investor. What Validea does -
and what you will not find anywhere else, either in print or on the Internet -
is interpret the investment strategies of well-known stock market investors,
whom we call "gurus," and give you the ability to apply these interpretations
to analyze virtually any stock.
If your preference is to follow one or more specific gurus,
we provide you with model portfolios to follow, based on specific gurus.
Further, we create a consensus portfolio that combines all of our guru
strategies. Whether you are looking for detailed analysis of individual stocks
or stock ideas, Validea provides exactly what you require.
What is the quickest way to learn how to use the site?
We recommend that before you go any further, you read our free report on guru investing by clicking here.
How do you pronounce Validea?
Good question. Our name is pronounced: va-lid-e-a. It is
not pronounced: valid-idea.
Who are the gurus whose
strategies you interpret and follow?
The guru strategies on our site are based on current
and past gurus who have proven track records and, often, have truly legendary reputations.
They include: Warren Buffett, David Dreman, Kenneth Fisher, Benjamin Graham,
Peter Lynch, The Motley Fool, John Neff, James P.
O'Shaughnessy, John Piotroski and Martin Zweig. The strategies are based on our best interpretation of the
published writings of the gurus and are not endorsed by them.
What do you mean that
you interpret the strategies of these gurus?
We first choose a group of investors whose abilities are
practically beyond dispute. We then carefully read what they themselves have
written about their methodologies and how they analyze potential investments.
Almost all of our gurus have written one or more books or articles describing
their approach to analyzing stocks. The one exception is Warren Buffett; we
base our interpretation of his methodology primarily on the book, Buffettology, by Mary Buffett, as well
as on other published materials. You can find out which books we used by
reading the biographies of the gurus on our site.
When we read about a guru, we break down, into discrete
variables, what the guru looks for. Let's consider, for purposes of
illustration, the legendary Benjamin Graham, widely considered the father of
stock market analysis (and Warren Buffett's mentor). By carefully reading
Graham's classic, The Intelligent
Investor, we identified a number of variables or "tests" that he subjects
potential investments to. For example, he looks for companies whose current
ratio (current assets-to-current liabilities) is 2 or more. Companies that fail
this test are dropped from further consideration. He also looks for companies
whose earnings-per-share has grown by at least 30 percent during the past 10
years, without any down years during the past five. We then take these and a
number of other Graham criteria and create a model that we think fairly represents
his investment strategy. Then, using financial data supplied by Reuters, we automatically
apply this model to publicly traded companies whose financial data is available
through Reuters (which is virtually all companies traded in the U.S.). As a member of Validea, you have access
to these models and analyses. In this way, Validea gives you the power to apply
our interpretation of Graham to the stocks that interest you. We, of course, do
this for all of our gurus.
Note, our approach is not endorsed or otherwise authorized
by any of the gurus. We read their books and articles, and other materials
about them, identify the variables we believe they use, interpret their
strategies and weight the various criteria based on what we think is the
emphasis the guru gives to each criteria. What we provide is our interpretation
of how these gurus operate.
How do I get all the information I need to apply the
guru strategies?
You don't have to get the information. That's our job. We find
the data and calculate the variables for you. If you need the current ratio or
the EPS, for instance, our software, which is patented, automatically
does this work for you. With Validea, you just type in the stock symbols of
companies you want to know more about, and we do the analysis, including
breaking down each and every variable for each and every guru strategy for each
and every company. It's automatic and instant.
And, our site is updated every weekday night.
Why Follow Gurus?
There's an old saying: Don't reinvent the wheel. These gurus
have strategies which have been tested and used by investors for years, even
decades. If you think you are a smarter student of the stock market than
Graham, Buffett, Lynch, Dreman, Fisher and the like, then, quite honestly, you
don't need Validea. If, however, you think folks like these are pretty savvy
and have ideas which are worthwhile, then you'd do well to listen to them,
understanding, of course, that you'll be using our interpretation of their
strategies.
I have been hearing
great buzz in the media about a particular stock, but your strategies don't rate it
highly. Why is that?
We at Validea believe that the most effective and successful
investors are those with a logical, proven plan that they follow, no matter what. We analyze stocks and
make recommendations based on cold, hard calculations. No emotion, no hunches -
only the numbers matter. We let the guru strategies be our
guides because we think emotion is an enemy of the investor, not a friend.
What does Validea cost?
We don't believe in selling things "sight
unseen." That's why we offer a FREE, seven day trial subscription. During this
time, you'll have full access to all of Validea's features. If you don't find
our information and analysis worthwhile, you risk nothing, you pay nothing. If,
on the other hand, you find that Validea offers unique views of the stock
market that you cannot find anywhere else, you are invited to join. The cost,
after the free trial membership is $49.95 per month, $129.95 per quarter, or $449.95 per year.
What does membership to Validea get me?
Validea membership provides full-access to all of our subscription services and features
including our Guru Analysis, Guru Stock Screener and Model Portfolios as well as our
bi-weekly Hot List Newsletter.
Who do I contact for customer service?
For customer service, please email billing@validea.ca.
How do I change my account information or cancel my account?
Send an email to billing@validea.ca.
I am unable to login. What should I do?
You can have your username and password emailed to you by clicking here.
If you continue to have login problems after receiving your username and password, please contact billing@validea.ca.
I see a mistake on your site. Whom do I contact?
If you spot a mistake on the site, please send an email to
info@validea.ca
I would like to post a link from my site to yours. Do I need permission?
You may post links to our site, but you may not use our logos or any endorsements from Validea.
Subscription Policy/Privacy
Where can I read your subscription policy?
You can read our subscription policy here.
What is your privacy policy?
You can read our privacy policy here.
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