January Members Engagement Meeting Recap

Graham Griffin

New features and model portfolios

GuruFocus founder Dr. Charlie Tian went live today to kick off the new year with a Members Engagement Meeting. Viewers of the live stream got an in-depth look at GuruFocus’ model portfolios and some of the newly created portfolios that GuruFocus will be tracking throughout the foreseeable future. As well, Tian explored several of the most powerful features that have been implemented into the website over the last year.

Watch the full video here:

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Tian started off the presentation by taking a look at the model portfolios that GuruFocus has created over the years. On the summary page, members can see the performance of these different portfolios since they were created.

Overall, the Most Broadly Held Portfolio has performed the best, with a 382.07% gain since it was created in 2006. This portfolio also averaged 15.32% over an annualized 10-year period despite value investors struggling over the last few years.

Each year the Most Broadly Held Portfolio is rebalanced to include new companies that have taken over within the tracked guru’s portfolios. The new holdings in the portfolio this year include Accenture PLC (NYSE:ACN), American Express Co. (NYSE:AXP), Salesforce.com Inc. (NYSE:CRM), PayPal Holdings Inc. (NASDAQ:PYPL), Square Inc. (NYSE:SQ) and Union Pacific Corp. (NYSE:UNP). Several of the long-term holdings in the portfolio have boasted massive overall changes, including Apple Inc. (NASDAQ:AAPL) at 777.05% and Microsoft Corp. (NASDAQ:MSFT) at 692.52%.

There are also two brand new portfolios that can be found that track High Quality Low CAPEX Companies in the U.S. and in China. Tian was especially excited about the China portfolio as the economy has grown to a point where there are many companies that are now considered high quality overseas that offer up great investment opportunities.

Once Tian had answered a few questions regarding the model portfolios, he moved forward to discuss the Buffett Indicator and his overall view of the market. He explained that the Buffett Indicator was modified to include the total assets of the Federal Reserve to generate a more accurate view of overall market valuation. This was done because the assets of the Fed have risen sharply over the last decade and now factor in as a large amount of the gross domestic product.

Alongside a question relating to Jeremy Grantham (Trades, Portfolio)’s letter to investors, Tian explained that he agrees that the market is very stretched at this point in time. He believes that we are close to the peak of a bubble and that it could pop at any given time. Predictions about the market show future returns coming in relatively flat and Tian feels confident that the models will prove to be true.

Tian spent the rest of the presentation highlighting some of the major additions to GuruFocus over the last year. He began this section by taking a look at the All-in-One Screener and the new features that have been added to it, including the Historical Data Screen and Customized filters. Once he finished with the All-in-One screener, he moved to the GF Value chart.

The GF Value chart that has been added to all stock summary pages and the data used for it can be used in the All-in-One screener.

The GF Value Line gives a stock’s intrinsic value based on GuruFocus’ own valuation method. The website’s calculation considers the following three factors:

  1. Historical price valuations, including price-earnings, price-sales, price-book and price-to-free cash flow.
  2. A GuruFocus adjustment factor based on the company’s past returns and growth.
  3. Future estimates of business performance.

Tian used Walmart Inc. (NYSE:WMT) as an example to show off the chart.

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Tian finished off the presentation by taking a brief look at the FilingWiz at the request of a viewer. He explained that there are plans to continue working on the FilingWiz tool to improve its functionality, but one of the useful things it can do is combine values from different tables.

Disclosure: Author owns no stocks mentioned.

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