I'm currious to know the opinion of anyone who uses the StockVal S/W marketed by Clime, which in based on a Buffett style valuation, as described by the author in his books "A Beautiful Company at a Fair Price" & "Market Wise" (a 2 chapter excerpt explaining the valuation can be d /l from http://www.stockval.com.au/documents...xtract_001.pdf ). And of course promoted by Rodger Montgomery on ABC Radio 5.40pm Mon (ie. the valuation method ) and at the Traders & Investment Expos ( currently in Melb ).
I realise the program has only been around for a few years(I think) & Buffett is long term style of investing ( ie. 5-10yrs or "forever" ! ). But to anyone who uses it, how useful has it been in selecting profitable stocks. Do most undervalued stock tend to become fairly valued by the market price increasing to the valuator price? any identifiable time frame? eg 6 months, 1-2 yr etc. What about the reverse? do many become" fair valued" by the value decling to market price? How often is an undervalued stock identified using an RR of say 15% ?
Is it suitable to generate a universe of stocks to trade long term eg. 6-18 mths? Although I notice that some of the stocks in Clime's investment Fund are thinly traded
Or is it just a good way to select stocks to give to your grandkids ! ,
at the very least it seems a way to avoid dud stocks eg HIH etc.
Any comment's or experience using StockVal would be greatly appreciated.