Fallen Angels

Buys beaten-down stocks whose businesses keep making money: the price has fallen at least 40 percent over the past year, yet more than a quarter of its assets is still funded by equity, free cash flow over the last four quarters was positive, and the company is worth more than 2 billion dollars on the market. Whether the sell-off was overdone is for the individual analysis to decide. Only shares our own deep-dive analysis rates green are bought — yellow or no analysis at all is not enough. New positions are added once a month; a stock is sold as soon as one of these conditions no longer holds or it is no longer rated green.

This portfolio buys shares.