A basket of FKs

Investing Strategies Falling Knives
#1

A very interesting and diverse basket of value stocks has emerged in the last few weeks, most have been discussed here. I believe an equal-weighted basket of these value stocks will outperform S&P500 in the next 3-5 years.

Intel
Pfizer
T Rowe Price
Car Max
Markel
Dollar General / Dollar Tree
Meta
Alibaba

There are a few others like CVS and McKesson which were much getter bargains a few months ago but are still somewhat undervalued.

Throw in an emerging market ETF like VWO or DGS (emerging market value is Grantham’s) and you should have a globally diversified portfolio.

3 Likes
#2

Why?

If you are going to construct a basket of “fallen angles”, I would not go with names that have structural issues. I would choose the names that are still growing, just got whacked on the “valuation”.

Separately, DLTR which is now fully valued or something slightly more than that, is not a value pick.