Find more than 20.000 value stocks. Invest in stocks with a higher intrinsic value than their latest stock price.
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The Value Strategy is not the reinvention of the wheel.
It's a strategy followed by the greatest stars of wall street. But you don't have to be an expert in stock markets to boost your stock portfolio´s performance!
We learned from the best investors and made value investing as easy as possible so every user at home can build up their own Fair Value Portfolio in a few steps.
We from fairvalue-calculator.com examined studies and did big backtesting to prove our strategy. In the past 14 years we proofed that our strategy would have outperformed stock markets.
With an additional annual return of 9-15% and less volatility, the fair value calculator strategy shows a promising way in stock picking.
Read our examinations of backtesting and studies our strategy.
Did you know that only 5% of all managed funds outperform the overall market, generating more returns than a random selection of stocks? A study by Cass Business School in London even shows that monkeys invest better and more successfully on the stock market than fund managers do. This is partly because the costs of actively managed funds are so high that a completely random list of stocks often outperforms fund managers.
Avoid high management fees on funds and take your stock investment into your own hands. Use the Fairvalue Calculator to choose stocks that are worth more than they cost. All you need is a brokerage account and this website.
With the Fair Value Calculator, you can see what a stock is really worth and put together your own well balanced portfolio of undervalued, cheap stocks. On the one hand, you can use the free calculators or the search and database to assemble your own Fair Value stock portfolio. In addition, a Portfolio Manager is available to help you to create a balanced and diversified stock portfolio.
The best part is that you do not need any previous knowledge and putting together a well-balanced portfolio is child's play. Just follow the steps in the Portfolio Manager. Once you have compiled your portfolio, you can transfer the created stock list to your brokerage account. Should an action in your account be necessary or a fair value suddenly fall, we inform you automatically by email.
Premium Membership gives you access to all the premium tools to determine the true value of stocks and the composition of a fair value stock portfolio. These following tools are available within the premium search & database:
With the Portfolio Manager, you can assemble your personal stock portfolio full of Fair Value shares. The Portfolio Manager helps you to put together your stocks portfolio.
In the colored bars under the Watchlist, you can see what type of stock you should add to create a balanced low-risk portfolio.
For the stocks In your Portfolio Manager you will also receive alert emails: If a stock no longer meets the requirements of the Fair Value Strategy an email will be automatically sent to your Inbox. For every meaningful and necessary action that is necessary in this portfolio, you will also receive an email. You can place as many stocks as you want in the sample portfolio or watchlist.
To meet the requirements of the Portfolio Manager, you can use the categorical search for Fair Value stocks. Of course, you can also use this search without the use of Portfolio Manager.
Simply select the country of origin of the stock and select the market capitalization of the company.
Low caps are rather smaller companies, mid-caps medium-sized companies and high caps the largest companies in the selected country of origin.
You now have the opportunity to add the stock to your portfolio or to visit the stock and read more fundamental key figures.
In the result list you will find only stocks that have a higher fair value (intrinsic value) than they currently cost.
These lists are kept up-to-date, just as the stocks in your Portfolio Manager are constantly being updated.
In addition, you can see the percentage difference to the fair value and the performance that the stock has made while in your Portfolio Manager.
There are currently thousands of undervalued cheap stocks in our database that you can view with a premium membership.
In the search you can already look up without a premium account if the stock you are interested in is in our database. If you have a premium account, you can use this search to search for a stock and see the fair value and fundamental metrics:
The idea of investing in undervalued stocks, ie stocks with a higher true value than the current market price, is not new. Probably the most well-known representative of this investment philosophy is probably Warren Buffet.
As co-founder of the Value approach, Warren Buffet managed to accumulate an incredible fortune over the course of his life, beating the market by an average of 15% a year.
As a beginner you often have wrong beliefs about the stock market. It has to be realized that institutional investors have no advantage over private investors.
I have the feeling that people who trust their bank to invest their money often think, "They have specialists for that" or "they know a lot more than me".
However, this is not quite correct, as any information your bank has can also easily be retrieved from the internet. But not only that, big institutional investors have two more crucial issues:
Only the glossy Flyer conveys that this is done in your interest. Only you can act 100% in your own interest. Because whether you win or lose your bank probably does not matter, because the commissions and expenses ceded them no matter how their depot develops.
In addition, a fund manager can not simply go for millions on a new stock. With the huge amounts of money the fund has to move, it is as damaging as the Titanic when it tried to dodge the iceberg.
By contrast, as a private investor, you are literally sitting in a speedboat and can get out of one position in seconds and immediately switch to another. It can often take months for a fund manager to stock up on the desired number of shares. There are simply not enough stocks, and during the acquisition of the shares, the fund drives itself up the buying price.
A rather difficult undertaking if you ask me - as if the fees you pay for it are not bad enough.
The following example is a classically wrong approach of the beginner: After successful education and years of hard work, you have decided to invest on the stock market due to the recent increases in the stock market in order to secure a financial cushion for later.
You go to your house bank and find out about investment opportunities: "Fund XY Protect" with the double-security mechanism or even the "Fund XY Growth" for something more daring?
The financial adviser will now proudly show you the pie chart detailing how the fund invests. "Opportunity Large Caps in Emerging Markets with High Performance and High Return on Investment in Unique Asset Management" sounds great.
No matter which stocks are in there and how revolutionary the system may seem. The question is not what stocks will be invested or what system will be used to select these stocks, but what are the fees that the advisor, in whatever form, wishes to have for parking your money.
A 5% initial charge, an annual management fee of 2.5%, transaction costs of 0.5%, and hidden costs can undermine the return. Total costs of more than 6% are independent of performance on the agenda. In addition, 90% of fund managers perform worse than the overall market.
This means that if you invest purely in the DAX without selecting individual stocks, you are already working better than 90% of German fund managers.
For example, this could easily be done with an ETF. All in all, you can expect that after a year of investing in a mutual fund through your house bank, you will most likely not make any money even in times of rising stock markets, due to expenses and the inability of the big funds to move. To prove this, I will now select a randomly chosen fund of 3 major banks in Germany and compare their 3-year performance with the DAX. But since I do not feel like receiving threatening letters from lawyers, I will not name the names, in this point you have to trust me. So I call these funds 1-3.
Let's start the games:
The DAX has had a performance of 27.5% over the last 3 years. This performance could easily have been achieved with an ETF and generated a return of 27%. How would the fund managers have performed in those three years?
I have used a search mask for funds of a financial website, only displayed stock funds and blindly selected the 1st, the 5th and 10th fund in the list and posted the return here. None of the three funds beat the market (here the DAX). Try it for yourself and compare the equity fund returns with the indices in each country or market!
And the costs such as initial charge of 5% is included yet! Actually unbelievable ..
I still dare one more experiment: I search Google for the "best stock fund currently" click on the first Google entry and look at the 3 year performance. Unbelievable .. A list of 65 funds appears and none of the 65 was even able to generate a return of 27% in 3 years. With 13 million investors in Germany, approximately 10 million invest in funds and only 3 million select individual shares. Why?
Note on ETFs: ETFs are passively managed stock baskets that are launched once and then no longer changed. That's why ETFs cost just 0.5% a year and you can use it to portray pretty much every index in the world, even baskets from individual industries can be purchased. This is called passive stock funds, so here no fund manager buys or sells stocks.
If you're now convinced that you'd better take stock investing into your own hands, then you should use this website fand the Fair Value Calculator - your chances are not bad that you'll be successful in the stock market.
Here I would like to cite a few facts that legitimize the use of the fair value strategy. As already mentioned, I did backtesting and live testing on the Fairvalue method, which strongly suggests outperformance. A live test was launched on 30/03/2016, and the compiled portfolio created according to the fair value method recommended here on this site has been able to deliver a higher return than the overall market. Already after a year! The Dow Jones performance was also below the fair value portfolio during this period. The effect is even greater the longer the depot is running (according to my backtests).
This is my personal opinion. Dr. Peter Klein, BA
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* Payment method of the membership fee is Paypal. By clicking on the button "Buy now access to premium tools" you will be redirected to Paypal. As a result, you can make the payment. With the completion of the payment you also pay the monthly fee of 7.90,- Euro. You can cancel this fee anytime on Paypal by clicking on the payment and subsequently canceling the subscription. (Only with the monthly subscription you will receive email alerts if fair values in your watchlist change or an action in your portfolio is necessary.) The access is still valid for the current month even if you instantly cancel it. The 49.90 euros correspond to the setup fee for your access and will be charged only once. By purchasing Premium Tools, you will be able to view the Fair Value of Shares and other details. You do not really buy stocks, you buy the analysis of the intrinsic value of the stock.
Disclaimers: fairvalue-calculator.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on fairvalue-calculator.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The experts may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall fairvalue-calculator.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on fairvalue-calculator.com, or relating to the use of, or inability to use, fairvalue-calculator.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. With the Use of the Portfolio Manager you don´t actually buy stocks with real money. You just get the Information of how a stock portfolio could be compiled. To follow the instructions on this side is no guarantee for success on the stock market. Stock investments are risky and can cause financial damage or lead to money losses.