Build Your Own Multifactor Portfolio With Value Stocks

Factor investing draws on historical research about what kind of stocks beat the broad market in the hope that they will carry on doing so.
To create a multifactor portfolio you can either buy an index fund that does this for you or you can build your own factor fund out of single value stocks. In my latest video that’s exactly what I do when I show you how you can create a value and momentum tilt to your portfolio by screening for individual stocks.
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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.
#ValueStocks #Investing #PensionCraft

[@cooper8t]

I was hoping half way through the video you'd compare the "build your own value with momentum portfolio" with a multifactor portfolio, such as RAFI, Value factor, ishares global multifactor or JP Morgan's multifactor fund to see what the difference is. Instead the video was a tad too "advertising/ promotional", but interesting enough.

[@btcee611]

seems to be a common theme of late

[@DConnor799]

I take it as a sign that not as many people are searching for stock advice on KZbin now so he has to fund it with sponsors lol.

[@adamhopkinson7299]

45th, seems like a ball ache all this trouble for 9-10% return annualised isn't that ball park index fund* returns? *global

[@muffemod]

I was here!

[@fu955]

What did you guys come up with ? I got this “CCL , GRMN , LOGI , KIE , STC “ CCL I got in there because I think it should do well after the cov!d eara is over . This portfolio beat SPY annual returns by 4%

[@fvlok]

Haha too emotional to follow this route

[@intgom]

Does Stock Card cater for UK stocks (not based on my quick scan of the website)?

[@DYRHodaMehr]

Hi John, we cover U.S.-listed stocks for now. So, if a U.K. company is also listed on U.S. stock exchanges, we have it. We plan to expand to other exchanges such as LSE in the next few years.

[@george6977]

Selecting individual stocks, researching and maintaining a concentrated portfolio is a lot of effort, and increases risk. You will need to study accountancy and even the auditors are incapable of spotting fraud. Stocks are like gremlins, they produce spin-offs; you end up with a nightmare portfolio. Much better to invest via low cost broad market ETFs which beat 85 % of active fund managers. Spend the time saved on learning about investment, then perhaps buy a few individual stocks.

[@pixelezio]

I feel baited into watching a 14 minute advert 🙄

[@Sukerkin]

Or a How To guide perhaps? Did you not find it interesting or useful?

[@TM-hw5tq]

Yeah, I feel like if it wasn’t wasn’t paid for content Ramin would have discussed the other big downsides of fees and concentration risk. At a minimum why not do some back tests vs commonly available factor etfs? I was on the cusp of signing up for patreon membership but this rather puts me off. I don’t need any more ‘sponsored content’ in my life lol!

[@thecasualfront7432]

yup, thats exactly what it is. just another youtube grifter, except this one is aiming at "sensible investors"

[@d.patrikakis8908]

Ramin has plenty of content where he demonstrates how to invest. In the past he posted videos using the Vanguard platform, crypto exchanges and others. This is purely showing you an investing philosophy and how it could be applied in my opinion.

[@thecasualfront7432]

@@d.patrikakis8908 bollocks its a paid promotion for some software company

[@gerry2345]

I like this vid... Good insight.

[@Pensioncraft]

Thanks @GerrysPlace your support is always appreciated

[@mutton_man]

Are these just for north America stocks?

[@labmq]

8th

[@TM-hw5tq]

Ramin, I am used to the comments sections of your videos being full of advertisers guff but seeing it in your ususally excellent videos is too much.

[@rafaelf6994]

Ramin, take a look at TIKR Terminal, you may enjoy a lot and could be great for educational purposes

[@lamanerasiemprelahay9851]

¡Ten el Valor Amigo! 😉

[@ereztsur7152]

Hi Ramin. Love your content. Could you talk about BRITISH value stocks?

[@QYousefi]

First

[@Pensioncraft]

Nice job @Qahir Yousefi!

[@MrKendoex]

@@Pensioncraft Could you share why 200 day moving average is far too short-termed? Since 6 months are 180 days, wouldn't the 200 days moving average be suitable? Thanks

[@yashin2068]

As always, thank you :) Useful video sir.

[@Pensioncraft]

Always welcome

[@richarddraperdrums5251]

Hi Ramin, How does the value + momentum approach compare on the ulcer index vs return that you displayed recently when suggesting quality was the 'best' for risk/reward? Looking at SPVM 10-year annualised performance of 13.2% vs 14.7 for SPY, this doesn't seem to demonstrate outperformance of value+momentum. Or can this be easily explained by the fund/ natural period of underperformance in last decade bull run/ other? Many thanks again for all your credible content, Richard

[@eweng903]

Problem with the value investing screen idea is simply that stock market prices on any given trading day are accurate. What you are doing is a leap of faith where you are hoping that a stock's price will increase in value going forwards based on a narrow assessment. That strategy inevitably carries higher risk because your stock screen is not actually a crystal ball.

[@linux2005]

No

[@CaseyBurnsInvesting]

You still on the inflation is transitory, base effects train? I’m curious if/when you’d get off that train.

[@robweinberg9396]

so are you investing? and if so, in what

[@mutton_man]

It's too early to tell. Alot of central bankers and economist are saying that the inflation will die down towards to end of the year and be getting back to the 2% in 2023/2024. Do you think inflation will be staying high for the foreseeable future?

[@CaseyBurnsInvesting]

@@mutton_man I personally think the rate will come down (not the prices) towards the end of 2022 to early 2023.

[@CaseyBurnsInvesting]

@@robweinberg9396 $250 a day into my core holdings. Mostly S&P 500.

[@robweinberg9396]

@@CaseyBurnsInvesting $65,000/yr input interesting approach. any output or rebalance? or just buy and hold?

[@Logical-imp]

I forgot to skip the ad and it went on for full 14:07 minutes.

[@stevew7803]

Thanks Ramin. I've been a subscriber to your channel for a couple of years. Your videos are always interesting, well presented and packed full of useful information. You have mentioned on many occasions that you are a fairly cautious investor and therefore you tend to avoid buying single stocks. In the regular Q&A sessions you won't usually answer questions relating to buying single stocks as opposed to funds/ETFs etc. This is the first video I can remember where you talk about picking individual stocks for a specific investment strategy. Can we expect more videos related to stock picking for a particular strategy or is this just intended as more of a "one off" introductory video on how to use the Stock Card site and its screener tool?

[@bunducraducu6718]

Thank you for all information, love your videos. God bless you, Sir!

[@Pensioncraft]

You are very welcome

[@nomcognom2332]

I think using Piotroski F-Score in the #2 criteria would work fine as well.

[@apothe6]

Avantis has great factor funds.

[@andreworrell8407]

Great video Ramin! Love your use of Stock Card! I learned alot in this video about combining value and momentum to build a robust portfolio. Keep up the great work as always.

[@Pensioncraft]

Glad you enjoyed it!

[@MK-uy5gs]

Ramin, could we just not buy 50% of msci world momentum and 50% value, instead of just the standard 100% msci world and hold long term to get excess returns?

[@robweinberg9396]

great video for the individual active investor

[@Pensioncraft]

Glad you liked it!

[@wolfiestreet6899]

I don't like StockCards lack of transparency on subscription fees.

[@DYRHodaMehr]

Sorry to hear that Wolfie. How can we make it more transparent in addition to having a "Price" page? Appreciate your feedback.

[@Ganok]

Woohoo congratulations on the sponsor!

[@Pensioncraft]

Thank you! Cheers!

[@ranjitinamdar]

One quick question - In western countries, doesn't the tax arbitrage which MFs and ETFs have over individuals buying and selling stocks (to rebalance for example to maintain such an ETF) exist? I find that a major difference! If I'm holding MFs and ETFs which are internally buying and selling stocks, there is no capital gains tax on those for me.....

[@mattlm64]

Stock Card would be better if it partnered with a broker to offer direct indexing so investors could set parameters and invest automatically.

[@DYRHodaMehr]

That's a great idea!

[@deepakuniyal]

Already doing this … factors include : World Quality, World Value , Emerging Mrkts

[@djpuplex]

Value should not be indexed and selected. I've done this for years.

[@simony2801]

Over the months you have wisely highlighted the value of buying the entire market type strategies and now you are making stock picking content, have you crossed to the darkside? I hope the paid part of the video has not swaid you.