Hello, my name is Arthur

and I am a value investor! I pick stocks based on true value investing principles, and help my subscribers achieve great long-term investment returns.

Boost your portfolio
for just $699 per year.

Our Investment Approach

We pick stocks of profitable and properly managed companies that have some kind of durable competitive advantage working on their favour, allowing the magic of compounded interest to happen over time.

To find these treasures, we constantly scan for companies around the world searching for strong fundamentals and peruse over hundreds of income statements and balance sheets.

We place strong emphasis on buying great companies at a fair price or better: the entry price is calculated using our desired annual return as a reference, and not the other way around.

We consider ourselves business owners and judge the merits of our investments based on the companies' performance, instead of the stock price.

Our target is an annualized compounded return of 15-20%, which can only be achieved buying great companies capable of reinvesting our earnings for a long period of time.

All the companies in our portfolio share these characteristics:

  • Fat business margins
  • High and stable returns
  • Above average growth rates
  • Predictable revenues, earnings and margins
  • Little or no debt on the balance sheet
  • Little or negative dillution rates
  • Predictable spending patterns
  • Outperform the competition
  • And many others!

We don't attempt to make money in the stock market. We buy companies on the assumption that the stock market could close the next day and not reopen in five years.

Our investing methodology is inspired by Phil Fisher, Charlie Munger, Warren Buffet and to a much lesser extent, Benjamin Graham.

Scan for valuable companies
Constantly scan markets from all over the world looking for prospective investments, and study one by one using the process below.
Study financial health, debt levels and leverage
Would a bank lend money to this company? Study company's financial health as a lender. Discard insolvent companies or very indebted companies.
Study business margins and operating metrics
How good is the business? Discard commodity type businesses with low or fluctuating margins and operating metrics. Discard companies in highly-competitive industries.
Study growth, predictability and management
Discard poorly managed companies with unpredictable or decreasing revenues, net earnings or earnings per share. Cashflow statement must be stable and predictable.
Study the nature of the company
Discard companies that depend too much on commodity prices, research and development or property, plant and equipment. It takes money off the bottom line.
Compare against industry and competition
Evalute how the company does against its competition and companies in the same industry. It should stand out as one of the leading companies, poised to acquire its competition.
Due dilligence: look for good signs and red flags
Verify the company's performance and find advantages. Discard companies that pose a future danger or flash red lights (Obsolete industries, high dillution rates, zombie companies, etc).
Determine entry price
We'd like to buy this company. What annual return would make us happy? Project future earnings using min/average/max operating metrics and determine entry price.
Buy the company or sell put option
When the share price meets our predetermined entry price, buy the company. If the price is not there yet, we might write a put option and earn a premium for waiting.
Follow up on the company
Monitor the performance, financial health, expense items, shares outstanding and debt levels of the company every quarter. Hold the company as long as the business is sound.
Sell the company
Sell our stake in the company only if the company is no longer performing as it should or any red flag persists. The best holding time for a good company is forever.

What makes us different

No hype or false promises

No hype or false promises

Our only promise is that we'll recommend profitable, efficient and prudently managed companies that are likely to beat the market.

No fear mongering

No fear mongering

We'll never appeal to your greed or fear to sell stuff you don't need. We'll never say things like "This stock is going up 300%" or "The stock market will implode, are you prepared?".

No macro predictions

No macro predictions

We are not macro analysts and we don't pretend to know the economic future of any given country, let alone the world.

No crystal ball investing

No crystal ball investing

We don't have a crystal ball. No matter how good the story is for any given company, our decisions are driven by facts alone.

No spam or third party advertising

No spam or third-party advertising

We'll only contact you to send buy or sell recommendations. Nothing else. No spam or third-party advertising.

Cost effective

Cost effective

Our service costs just a fraction of what a mutual fund or active manager would charge.

How does it work

Sign Up

1. Sign up

To get started, just sign up and become a subscriber. You'll be asked to confirm your email and be given a login password via email.

We offer a 30-day risk free trial, which starts right after your registration is finished.

Access the portfolio

2. Access the portfolio

Once subscribed, you'll be able to log-in and have access to our portfolio of stocks, which you can proceed to buy with a portion of your funds, leaving dry powder for future acquisitions.

Get email alerts

3. Get actionable email alerts

Whenever a valuable company is trading at a fair price or better, we'll send you an email alert recommending to buy the stock, and a report about the company.

Track the portfolio

4. Track the portfolio

Log-in at any time to track the companies in the portfolio or download the report for any given company again.

Some of the companies in our portfolio

The most efficient salmon-farming company in Europe (UP 35.40% + dividends)

A micro-cap biotech company from the UK that synthesizes antibodies for blood testing (UP 28.92% + dividends)

A top-quality chocolate confectioner company (UP 18.51% + dividends)

The most efficient provider of infrastructure software in the US (UP 15.49%)

The top-performing soft beberages company in the world (UP 14.88%)

An Indian technology company that outperforms western giants (UP 14.32% + dividends)

Advantages of value investing

Increasing returns on investment

Increasing returns on investment

Long-term investors of great companies are rewarded with increasing return on the investment every single year, as retained earnings are reinvested into the company at their internal return on equity rate.

Tax efficiency

Tax efficiency

By holding a company as long as it functions properly, you are offseting capital gains taxes to the future almost indefinitely, while retained earnings and share buybacks increase your stake at the company, tax free.

Low transaction costs

Low transaction costs

When it comes to value investing, the best holding time is forever. This means that you'll pay very little fees to your broker in transaction costs.

No anxiety

No anxiety

You don't really care if the stock price moves up or down. All you care about is buying great businesses at a fair or better price, and keeping track of the business operations.

The world is yours

We search for value in every market in the world with decent accounting standards. The companies in our portfolio are mostly listed in the USA and Europe.

However, we can invest in companies headquartered in...

  • United States
  • Europe
  • Japan
  • Australia
  • New Zealand
  • Singapore
  • Hong Kong (extra caution due to accounting standards)
  • South Korea (extra caution due to accounting standards)
  • Russia (extra caution due to accounting standards)
  • Mexico (extra caution due to accounting standards)
  • Brazil (extra caution due to accounting standards)
  • China (extra caution due to accounting standards)
  • India (extra caution due to accounting standards)

Given the choice, we'll always trade an American or European exchange. Since some companies are listed in several exchanges, we often can choose in what currency and exchange to trade it.

Stock Brokers

Saxo Bank

Saxo Bank is an international bank and stock broker based in Denmark. Offers virtually all markets and a fantastic investment platform. It's the best option for European residents.

TD Ameritrade

TD Ameritrade is a brokerage firm based in Omaha, Nebraska. Offers lots of markets, a good investment platform and fast support. It's the best option for American and Canadian residents.

Interactive Brokers

Interactive Brokers is a brokerage firm based Greenwich, Connecticut. It provides access to virtually all markets. Support is very fast, but the online platform is not as intuitive.

Frequently asked questions

What is the initial holding time?
We'll normally buy a company with intention of holding it at least 5 to 10 years, depending on the industry.
How should I structure the portfolio?
According to your risk profile. Ours is 5% gold, three years of living expenses in short-term bonds, and equities.
How often do you send buy recommendations?
We'll email you once a month with a company to buy or a put option to sell, alongside with the company report.
How often do you send sell recommendations?
Not very often. We hold companies as long as they perform and management is prudent. The best holding time is forever.
What kind of annual returns can be expected?
Making a 15% compounded annual return on investment is something worthy of celebration, and reaching 20% is outstanding. We are aware that many other market research advisory services advertise higher returns, but they can only attempt to reach those returns trading energy or mining stocks, which are the most volatile industries of the planet.
What kind of stocks do you recommend?
We can recommend great companies at a fair price or better, or good companies at a bargain price. If we're lucky and a recession hits, we can find great companies at bargain prices too, but of course, this does not happen very often. As far as the nature of these companies, we usually recommend boring, stable, properly managed and little indebted companies.
How do you find valuable companies?
We use a mechanical approach to fundamental analysis based on propietary scores. Each company has a different score which is calculated from its business margins, operating metrics, overall debt level, leverage usage, short-term solvency, interest expense, predictability and growth of revenues and earnings per share, stability over time of margins and operating metrics, stability of expense items of the income statement and many other factors. All the components that make up the score are broken down on every report.

This approach automatically discards commodity-type businesses, very indebted companies or unproperly managed companies.
What about the stock price?
The stock price determines the annualized return on the investment and ultimately, determines when we buy into any given company. However, the stock price plays no part in our process of determining the value of a company. We only pay attention to stock prices after we've decided what companies we'd like to buy.
How do you calculate the expected annualized return on investment?
First, we project the earnings of the company to the future over a number of years, under different case scenarios of performance. We can do so because we know the historical operating metrics of the company: return on equity (ROE) and return on assets (ROA), and we use whichever is more stable over time for this purpose.

Secondly, once the earnings projection is finished, we calculate possible stock prices using historical price to earnings (PE Ratio) ratios. And lastly, the annualized compounded return on the investment is calculated for each projection. The end result a cloud of possible investment outcomes, from worse case scenario to best case scenario, which is included in every report.
Do you pay attention to interest rates and inflation?
We do, but don't try to forecast neither. We use those figures to make investment decisions. We'll buy a company with great fundamentals if it offers an annualized return on the investment (on book value and dividends or using its lowest historical PE-Ratio) above the long-term corporate bonds yield, with less drawdown risk that the inflation cost (compounded loss of purchasing power) of remaning in cash for the same period of time. We also require the return on the investment for the first year to be above the 10-Y Treasury Bond yield.
Do you invest in dividend yielding companies?
Most of the companies in the portfolio pay dividends, but we don't own them because of that. In fact, we actually look for companies which are capable in reinvesting retained earnings to increase future earnings, either by expanding the business, making acquisitions or buying back shares. However, paying dividends usually keeps management in check.
What happens if the stock market crashes?
You'll have strong, productive and little indebted companies in your portfolio. With any luck, you'll get to buy more of them at a discount. Predicting a stock market crash is almost impossible: the best way to protect yourself is by investing in sound companies, and when a crash happens, go on a shopping spree.
What happens if there is nothing to buy at any given month?
If there is nothing to buy, we'll satisfy our thirst for action selling a put option for a company we'd like to buy anyway. For instance, if we'd like to buy XYZ company at 50$ per share but it is trading at 60$ per share, we'll sell a 6-12 month put option at a 50$ strike price, and earn a premium for waiting. If the price falls below 50$, we'll buy the stock and keep the premium.
The stock market is at all time highs! Do you still find companies to buy?
Finding new investments is much more difficult when the stock market is making new highs. It's easier to find opportunities during market downturns or corrections. However, we can still cash-in profits selling put options for the companies we want to own, and we also invest overseas.
Do you hedge against a market downturn?
We don't hedge against a market downturn per se unless the cost of doing so is miniscule. Instead, we apply the opposite logic to find unstable, indebted and unproperly managed companies that are trading at insane valuations, and spend some of our dividends buying put options for these companies, as a cost-effective insurance for our holdings. If a market crash happens, these companies will suffer much more than the stock market.
The company XYZ is great and all over the news, why are you not invested in it?
Because the company does not meet our value investing standards, or is not trading at a price that would make us happy. Our process ensures ignoring the darling of the day that eventually goes bankrupt, or at least ignore it until it trades at a fair valuation or better.
What would you do if a company -bought properly years ago- trades today at insane valuations?
We'd consider the tax implications before selling: capital gain taxes are hefty in every western country. For instance, if the capital gains taxes in your country of residence are above 30%, selling is probably a bad idea. If you also happen to have plenty of cash sitting in the brokerage account, selling is definitely a bad idea. We'd only sell if we could find other company offering better returns on our investment, even after paying capital gain taxes. Other issue is if the company has lost performance or became risky.
What red flags can make you to sell a company prematurely?
Most reasons are debt related and have to do with the operating risk of the company, not with the stock price itself. For instance, a huge spike in the company's debt not caused by an acquisition, or a sudden spike in interest expenses relative to operating income. These precautions prove very useful. For example, a careful eye would have picked up the fact that in 2007 Bearn Stearns reported that its percentage of interest payments to operating income had jumped to 230% and would have sold the stock on the spot almost a year before the company went bankrupt. Purists like us would have never touched the stock due to the fact that interest expense to operating income was too high to begin with.

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