There are thousands of publicly traded stocks out there for investors to choose from. The way our team sees it- there’s a vast sea of opportunities out there for some truly special stocks, if you know where to look. The only problem is that finding these hidden gems isn’t easy. It takes a lot of time, effort, and skill– and rarely do “Do-It-Yourself” investors have all three of those key elements.
This is why many choose to use index funds to build their portfolio. Using passive funds alone takes very little time, effort, and skill. And for investors who don’t have any interest in diving in deeper, this is a perfectly fine approach.
The only downside to using index funds alone is that you miss the chance to find and make focused investments in the one-of-a-kind companies that can have a huge impact on your portfolio. We believe that the most optimal portfolios include passive index funds and some thoroughly vetted individual stocks. Holding some concentrated positions in even just a handful of companies can drastically increase your potential returns.
The VTX Capital Stock Selection Process
Ideas: The goal of the Idea Phase is to translate our perspective of domestic and international macro conditions into an opinion on which sectors and industries have strong potential to outperform in the future.
Screening: Within the confines of the previous step, we use a proprietary screening system that sifts through stocks based on predetermined fundamental data. We then further filter down our findings using a mix of momentum-based technical indicators.
Final Vetting: With the final list of candidates, our Senior Analysts perform deeper due diligence on each company. We focus particularly on shareholder reports, management audits, and forecasting any upcoming catalysts for each company.
Five New Stocks Each Month
At the beginning of each month, we publish our single best stock for each of the following 5 categories below. These are stocks that our research has shown as having the biggest upside potential and the best risk/reward ratio.
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Jeff earned his undergraduate degree from Virginia Tech in Biochemistry, but investing has been his passion since his teenage years.Jeff has completed Level I of the Chartered Financial Analyst (CFA) designation as well as the Series 7 exam.
Aside from investing, he enjoys spending his free time volunteering with Best Buddies and as an EMT.He has two dogs, Annie and Sydney.
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