The Diversified Buybacks portfolio seeks to own a diverse group of companies that have all bought back their own shares.
My goal is to invest in companies that are buying back their own shares. In doing so, companies reduce their total number of shares outstanding. That potentially increases value for existing shareholders.
I focus on income-producing companies that have strong Standard & Poor’s credit ratings.
I invest in companies that buy back their own shares, thereby decreasing the total number of shares outstanding. My investment decisions are based on fundamental analysis, including discounted cash flow, earnings growth and overall financial health as measured by debt ratings of greater than B-.
I attempt to find companies that are buying back shares either because they believe they are bargain-priced, or they believe it’s a way to build long-term shareholder value.
In addition to my buyback research, I select what I believe are a diversified mix of stocks based on discounted cash flow, earnings momentum and free cash flow metrics. My research also attempts to find companies that are healthy enough that they can continue to pay dividends.
This portfolio seeks a greater mix of diversification than my High Yielding Buybacks strategy. I attempt to hold about 20 stocks.
I typically sell positions when I believe that a company’s fundamentals have changed, when my research indicates that the financial health of the company is compromised or when the market price exceeds my calculated price target.
Past performance is no guarantee of future results.
Performance of the portfolio manager's account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings distributions and broker commissions. Manager returns include trades and positions that fail Covestor's trading rules, as a result, actual client returns will differ. Covestor advisory fees are simulated and applied retro-actively to present the portfolio return "net-of-fees".
Average client returns are calculated by Covestor and are composed of the average, time-weighted returns of all active client investments (some of which may contain investment restrictions) to the underlying portfolio. These daily average returns are then linked together for the timeframe presented. These returns include cash, dividends, earnings distributions, brokerage commissions and Covestor advisory fees.
All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by Covestor, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
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Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations. Benchmarks presented are total return and therefore inclusive of cash, dividends and earnings distributions but not transaction costs.
Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
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Transactions that are marked as "Replicable" passed Covestor's trading rules and were eligible for replication at the time of execution, subject to individual
client constraints. Eligibility for replication may change over time. Actual client investment trade activity may vary.
Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index.