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Shailesh Kumar
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Shailesh Kumar is the CEO of Value Stock Guide, one of the premier value investment advice site on the internet. An MBA from University of Michigan and a former Management Consultant, Shailesh has helped numerous Fortune 100 executives with their strategic and operational issues and now... More
My company:
Value Stock Guide Membership for Long Term Value Investors
My blog:
Value Stock Guide - Investing in Undervalued Stocks
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  • Leading S&P 500: 1st Quarter Update Of Value Stock Guide Portfolio

    The first quarter of 2015 had everything in it to keep the investors on tenterhooks. There was of course the slide in the oil prices and the spectre of a rise in the Federal Reserve interest rates. The US Dollar gained against the world currencies and the Greek drama continues. The result of all this was a tepid Q1 gains in S&P 500 of 0.95% (Total Returns).

    Small Caps Gained Ground

    Small capitalization stocks fell behind considerably compared to their large cap brethren in 2014. This year so far the small caps have performed well, albeit volatility continues to be a feature. Russell 2000 index is up 4.32% in Q1 on a total return basis. As small companies tend to be more domestic in nature and much more reflective of the economic conditions in the country, it is understandable that the relative solidity in the US economic environment is now being reflected in these stocks. After trailing the S&P 500 by 8.8 percentage points in 2014, there was a valuation gap that needed to be closed.

    Value Stock Guide Portfolio Gained 1.92% in Q1 2015

    We trailed the Russell 2000 index in Q1 but handily beat the S&P 500. Traditionally the VSG portfolio has leaned heavily towards smaller company stocks, as that is where most undervalued opportunities exist. However, now we are picking up a few names in mid and large cap companies that are being valued attractively, mainly in cyclical industries. There are pockets where investors are fleeing beyond rational reason and the time is ripe for picking up good solid companies at attractive valuations.

    We have also picked up a deeply undervalued and debt free oil stock this year which has already delivered close to 25% in the short couple of months.

    The following table describes the performance of Value Stock Guide Portfolio since its inception on July 23, 2009.

    Total ReturnsVSGS&P500Russell2000
    Value of $100K since Inception$ 329,998$ 232,322$ 225,299
    2015 YTD1.92%0.95%4.32%
    Last Year4.98%13.69%4.89%
    Last 3 Years92.28%74.59%69.42%
    Cumulative since Inception230.00%132.32%125.30%

    2014 performance for the portfolio was below expectation but we continued to stay disciplined and carefully adjust our portfolios. As a result we think we are very well positioned for a great 2015.

    Apr 06 3:34 AM | Link | Comment!
  • Q3 Update: VSG Portfolio Gains 31.73% YTD Vs 19.79% S&P 500

    I strive to achieve an average of 30% annual returns consistently and while it may not always work each year, my picks have performed well enough since the portfolio inception to give me an average of 30% return or better. This year with the market itself racking up close to 20% total returns so far, outpacing the S&P 500 has been extremely satisfying. In my experience, and this has generally borne out over time, value investors tend to underperform the market in the times of extreme optimism and outperform the market when other investors are running for the hills.

    It has been a struggle to find good opportunites in Q3, but we did find a few and are able to continue growing the portfolio at a good clip without taking undue risk.

    Read more about how we did this year and what I think the future holds

    We sold out of ISH last quarter and added 2 new positions. More details on site.

     

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Sep 30 11:41 PM | Link | Comment!
  • 26.7% Return In First 6 Months Of 2013 Following A 32.44% Gain In 2012

    I generally do a quarterly update on how the Value Stock Guide portfolio is performing. As Q2 ended, I was knee deep into analyzing a very interesting stock (which we subsequently bought) and as a result, this update is a little late. The performance numbers are as of the market close last friday (Jul 5). Here are the key numbers

    Value Stock Guide Premium Portfolio Performance
    Total Return20132012Since Inception (Jul 23, 2009)
    VSG Premium26.70%32.44%182.55%
    S&P 50015.68%16%76.88%

    Data as of Jul 5, 2013. Total Returns include dividends. VSG Premium returns data is net of commissions

    Essentially, $100,000 invested in S&P 500 (assuming no transaction costs) on Jul 23, 2009 would be worth $176,880 as of July 5th 2013. The same $100K invested in the Value Stock Guide Premium portfolio would be worth $282,550. Put it another way, you could have taken out your original investment, gone for a round the world cruise, and still kept pace with the Joneses! At least as far as the size of the portfolio is concerned.

    The Chinese credit crunch inspired dip in the markets in the last few weeks has barely registered on the VSG portfolio. Since I do not watch CNBC or Bloomberg, I would not have known how badly the market is taking it, if it were not for Twitter!

    We are on track to deliver another outstanding year. As you recall, in 2012 we trounced pretty much every index in existence and about 99% of the hedge funds. Except of course, we do not do any fancy derivatives - just focus on old fashioned stock picking based on value investing principles.

    Visit us at ValueStockGuide.com or if you are interested in duplicating our investing returns, consider the premium program.

     

    Jul 10 10:18 PM | Link | Comment!
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