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Undervalued stocks

In January I started publishing stocks I consider undervalued. I created an algorithm which browses through my watch list of 150 stocks and checks them whether they are priced per their fair value or not.

It is a never ending quest of investors trying to find stocks which are undervalued. There is many opinions, models, and ways to look for those stocks. But what’s the most important is whether the model works or not in the long term.

I actually created my model last year, but it still was a manual selection, calculation, and testing, which soon become a tedious work and I lost interest. I look for investment I can automate and forget about it.

So I continued working on it and improved my system and now my selection is automated.

I intended to invest in these stocks in my ROTH IRA account, but I still saw a tremendous work in doing so and last night, right before I got to bed I got an idea.

I have a Motif Investing account! I could build a portfolio (motif) which would consist of the selected stocks. It is easy to manage, rebalance, and follow. What a great idea!

I cannot use my January selection anymore, but I still could start with my February selection.

And here is the motif I created today:
 

 

 

You need to have an account with Motif Investing in order to invest in this motif. Opening an account is easy and if you open an account and start investing, you will receive a $150 bonus. Then you can invest as little as $250 into this motif and ride the stocks up. I will do it myself soon (maybe next month).

 


Get up to $150 when you start trading with Motif

 

I will rebalance this motif every month. I will remove those stocks which will reach their fair value and add new stocks which my screener considers as undervalued. All funds in the motif will be equally allocated in the selected stocks, so for example, the February selection has equal 4% allocation. But the March allocation may change based on how many stocks will be selected in March.

Then this motif would be an excellent way to track my results and even invest in this portfolio and being automatically re-balanced every month.

Let’s see, how this journey ends at the end of the year.

Good luck and happy investing!
 





2 responses to “Undervalued stocks”

  1. Evan says:

    How do you automate it? For the past few years I have been doing it PAINSTAKINGLY by hand every single month. For example:

    http://www.myjourneytomillions.com/articles/febru

    What program do you use?

    • Martin says:

      Evan,
      I could automate my stock selection and now rebalancing it, not reporting. I still have to do that manually too, but working on a way how to automate it. Playing with dynamic HTML content for this purpose loading data from my spreadsheets.

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