Track Record Standard Edition

My buyback stocks rock!

My buyback investment strategy has consistently beaten the market, from the bull market of the 1990s through the ensuing bear market and its subsequent recovery, followed by the current see-sawing market. Whether the market is bullish, bearish or flat, solid or wobbly, my portfolios beat their benchmarks.

The research is behind me. A major study of the stock market over a 20-year time period found that in each four-year period, value buyback stocks – buyback stocks with high book-to-market ratios — generated returns 388% higher than other stocks. The financial difference Buyback Stocks make for your bottom line is tremendous.

In a 10-year period of a raging bull market, if you had invested $10,000 in a typical S&P 500 portfolio, your investment would have grown to $67,917. That’s an excellent return, but the same $10,000 invested exclusively in value buyback stocks would have grown to $130,254. That’s nearly $70,000 more in profits, double what you received from a typical S&P 500 portfolio. And that’s just returns from an average value buyback stock portfolio. Over half have done even better, sometimes much better.

I am proud that as of February 28, 2022, 4 of my 5 model portfolios have substantially beaten the market since inception. For instance:

Portfolio Inception Date Since Inception Since Inception Outperformance
5-Stock Buyback Dogs:  Mar-97 829.51% S&P 500 445.38% 384.13%
Buyback Income Index:  Mar-97 1232.10% S&P 500 445.38% 786.72%
20-Stock Buyback Index:  Mar-97 1101.80% S&P 500 445.38% 656.42%
Buyback High-Tech:  Jan-00 173.99% NASDAQ 235.73% -61.74%
Buyback Health & Bio-tech:  Dec-01 852.66% S&P 500 276.74% 575.92%

Over the years, we’ve made money on some of the biggest, most well-known companies in this country, and on some smaller high-fliers, too. We buy throughout all industries -- retailers, restaurants, drug companies, high tech, airlines, oil companies, financials, insurers, dot coms. The common thread in all of our investment recommendations has been that they all were buying back their own shares, and ultimately reducing total shares outstanding.

For example, since 1996 we’ve bought positions in the following companies, and gained substantially when we sold: Accenture (14%), AFLAC (306%), Air Transport Services Group (27.47%), Altria Group (338%), American Express (448%), Assurant (63%), Atkore Int'l Group (30.29%), AutoZone (102%), Avis Budget Group (40.22%), Avon Products (39%), Berkshire Hathaway (51%), Big Lots (42%), Celestica Inc. (46.55%), Crocs, Inc. (64.17%), DST (65%), Exxon Mobil (46%), Fang Holdings (35.08%), Fortinet (74%), H&R Block (61%), Hologic Inc. (59.85%), Ing Group (67%), Intel (324%), Intuit (42%), Joy Global (113%), Lexmark International (60%), Limited Brands (74%), Mellon Bank (173%), Merck (73%), Methanex (26%), MGM Resorts Int'l (40%), New Plan Realty (93%), Papa Johns (102%), Pepsi (70%), Philip Morris (92%), Polycom Inc. (47%), Regions Financial Corp. (31.39%), Rex Stores (48%), Seagate Technology (46%; 77%; 141%), Sirius XM (40.36%), SkyWest (96%; 187%), Spartan Motors (266%), (74%), Synaptics Inc. (106%), Synopsys Inc. (51%), Tandy (564%), Teva Pharmaceuticals (113%), Tractor Supply Co. (47%), TRI Pointe Group (39.04%), Union Bank (156%), Wal-Mart (258%), Yankee Candle (35%), Zynga Inc. (25.21%).

At The Buyback Letter, we take companies that announce buybacks and analyze them more rigorously than they've ever been analyzed before, to separate the wheat from the chaff. Then we recommend stocks based on the profiles for each portfolio. Each month in the newsletter, we offer you buy, sell or hold advice on all our guided portfolios, so that you, too, can beat the market using The Buyback Strategy.