How are stocks chosen for the Selected Investments model Portfolios I, II and III in Selection & Opinion?
Portfolio I, Stocks with Above-Average Year-Ahead Price Potential, is built on Value Line’s well-respected Timeliness Ranking System. It is primarily suitable for investors who wish to take more risk in hopes of greater returns than might be afforded in Portfolios II or III. To qualify for purchase, stocks have to be ranked 1 (Highest) for Timeliness. To reduce portfolio turnover (and recognizing the fact that many good growth stocks go up and down in price along the way), a stock that drops a rank in Timeliness to 2 (Above Average) may remain in the portfolio, assuming that the company’s longer-term fundamentals remain sound. A stock that drops to 3 (Average) for Timeliness must be sold. We attempt to diversify the holdings as much as possible, but note that the Timeliness Ranking System tends to favor high earnings growth and more volatile issues that may cluster in a few industries. Portfolio II, Stocks for Income and Potential Price Appreciation, attempts to combine our Timeliness
Related Questions
- The Selected Investments section of Selection & Opinion has three portfolios. Why isn there a "Conservative" portfolio?
- How are stocks chosen for the Selected Investments model Portfolios I, II and III in Selection & Opinion?
- Who is on the Level II and III Certification Board and how were they selected?
