The Easiest Way to Rank Almost 5,000 Stocks

Episode #345 | January 23, 2024

Episode #345 | January 23, 2024

The Easiest Way to Rank Almost 5,000 Stocks

In This Episode

On this week's Stansberry Investor Hour, Dan and Corey are joined by their colleague Matt Weinschenk. Matt is the director of research and a senior analyst here at Stansberry Research. And he's dropping in to share the exciting, revolutionary technologies being developed at Stansberry that can give investors an edge.

Dan and Corey kick things off by discussing Argentine President Javier Milei's incendiary speech at the recent World Economic Forum in Davos, Switzerland. They start by quoting some passages from it and covering the main themes – from the negative consequences of government intervention to potentially abolishing the central bank. After, they talk about why this type of rhetoric from a politician would never fly in the U.S., even though it reflects a lot of people's feelings. As Dan quips, "The United States is up to its eyeballs in central bank."

Next, Matt joins the conversation and elaborates on what type of investor he considers himself to be. He brings up value investing, the importance of bottom-up business-quality analysis, and how he uses quantitative tools to find the best businesses. Speaking about his strategy, he says...

Bottom-up [investing] is most important, but I think you need to know enough macro to not step in a pothole. [You've] just got to avoid the big errors and make sure the tailwinds are with you.

Matt then explains the "Stansberry Score," which ranks nearly 5,000 stocks from first to last. It assigns each stock both an overall number and letter grade, plus letter grades for financials, capital efficiency, and valuation. Matt describes it as "kind of a brain dump of all our Stansberry investing philosophy into a number." Investors can use it to check ratings on stocks they may be interested in, or they can use it to find hidden gems. For example, Matt points out that the No. 1 Stansberry Score stock right now is a Mexican airport company that many have never even heard of. And he specifies...

This is not a little trading indicator. It's not based on technicals and lines on a chart. This is a deep business-quality analysis that really is saying, "Hey, if you buy this, over the next two to five years this is going to be the kind of stock that compounds your wealth." If you're an investor at home and you're saying, "What should I be looking at? Oh, there's 3,000 stocks out there. Oh, is this one a quality stock? Is it struggling?" We can really shortcut that.

If you're interested in learning more about this tool and trying it for free, you can check it out at StansberryAnnouncement.com.

Matt also goes into detail on The Quant Portfolio. This new portfolio is fully optimized and uses Stansberry Score data to evaluate each stock. Entirely using computers and algorithms, it looks at the relationships between each stock and picks out the best ones that will work together to provide the highest returns. And so far, it's blowing the market out of the water! Matt emphasizes that in the past two years of live testing, The Quant Portfolio is up 20%, while the market is only up 5%...

We're driving toward that answer of position size and portfolio management, trying to deliver that to individuals.

Lastly, Matt talks all things econometrics – what it is, whether it's worth studying, and its interplay with machine learning.