5 Star Stocks – Value Investing

What is Value Investing?

Value investing is an investment strategy where stocks are selected that trade for less than their intrinsic values. Value investors actively seek stocks they believe the market has undervalued.

Warren Buffett has become a Billionaire by following this process – but why doesn’t everyone else?  Because it is hard.

Take my Gilead Sciences (GILD) investment for example – I feel this will be a great long term hold – and I love getting a 2.27% dividend payment every three Months while I wait.  But the stock has not performed well – and most short term investors will not have the patience to hold it for a few years – to enjoy the turnaround.  Short term headlines like these will scare them out of the stock:

• Business Insider – HILLARY: This is my plan to tackle ‘troubling’ drug price hikes
• MarketWatch – How Gilead ‘broke’ Obamacare

But if you have a process to narrow your focus on only the best companies – and have the patience required – Value Investing can be very rewarding.  With that said – only two biotechs make the 5 Star Screen this week:

3 Click on the links to research further.

Not surprising given the headlines I included above.

Happy Labor Day!

Please enjoy some quality music over the long weekend:

https://www.youtube.com/watch?v=ePm3FhAfGOo