Frequently Asked Questions
We provide a list of common portfolio-related questions (FAQs) from A Patient Prospector community along with answers from our team.
Should I only buy stocks that are trading far from their published Goal Price?
We cannot provide personalized investment advice, so readers should conduct their own research or consult a qualified financial adviser before making investment decisions.
We find that subscribers use our research in different ways. Some follow one of our model portfolios, while others build their own portfolios by selecting stocks from our Goal Price list or from the portfolios featured in the newsletter. Some readers may also be looking for only one or two ideas at a time.
Goal Prices should be considered alongside a given stock’s valuation, risks, position size and your own circumstances.
Our goal is to build and maintain a broadly diversified portfolio of undervalued stocks. If we remain comfortable keeping a stock in the Goal Price list, that generally reflects our continued confidence in its long-term potential, although each reader must decide whether it is appropriate for their own portfolio.
Where can I find stock updates ?
We announce activity, including buys, sells, thesis updates and other changes in our thinking through updates in the monthly newsletter and in the weekly Market Commentaries. Sales are communicated through Action Alerts. These updates are emailed to subscribers and made available through the member website.
How do you identify stocks for your portfolios?
We actively follow more than 200 companies and regularly update our analysis as corporate fundamentals, industry trends, and other relevant factors evolve. Using Bloomberg as our primary data source, we also screen a universe of approximately 3,000 stocks for new opportunities that meet our value-oriented investment criteria.
How do you value stocks?
Our value-oriented approach combines quantitative screening with qualitative analysis. We use metrics such as price-to-sales, enterprise value-to-EBITDA, price-to-tangible book value, price-to-earnings, and dividend yield to identify potentially attractive opportunities and evaluate the companies we follow.
For each stock, we develop a quantitative estimate of its potential value approximately five years into the future: our Goal Price. We also establish (but do not publish) an initial Buy Limit that provides an appropriate margin of safety based on our assessment of the company’s fundamentals, valuation, business dynamics and risks.
All else being equal, we may accept a somewhat higher purchase price for a dividend-paying (or high shareholder yield) stock because the dividend contributes to the investor’s expected total return alongside potential capital appreciation.
When do you sell a stock?
We may sell a stock for several reasons:
- Its price reaches or exceeds our Goal Price.
- We identify another opportunity with a more attractive risk–reward profile.
- Changes in the business, valuation, or investment thesis mean the stock no longer justifies continued ownership.
- The stock develops trading characteristics (such as persistently weak or deteriorating liquidity) that make it unsuitable for continued ownership.
How should I incorporate stocks from APP into my existing portfolio?
We cannot provide personalized investment advice. Our recommendations are intended as independent research and should be evaluated alongside your existing holdings, investment objectives, time horizon, risk tolerance, and need for diversification.
Before investing, we encourage readers to conduct their own research or consult a qualified financial adviser to determine whether a particular investment is appropriate for their circumstances.
Do you rebalance?
Our portfolios are equity-focused, so we do not rebalance into other asset classes. However, we regularly review each holding and its portfolio weighting, making adjustments when changes in valuation, fundamentals or risk warrant them.
We do not prescribe an identical allocation for every subscriber. Portfolio construction depends on each investor’s objectives, risk tolerance, account size, and existing holdings. With most portfolios holding more than 80 stocks, individual results will also vary depending on which recommendations a subscriber chooses to own.
What should I do if a stock reaches its Goal Price but I haven’t received an Action Alert?
Our Goal Prices are estimates, not automatic sell signals. We continuously review them and may revise them as a company’s fundamentals, valuation or outlook changes.
How often are Goal Prices posted?
We publish Goal Price updates for All-Access members on a weekly basis. Updated Goal Prices are reflected in the member dashboard and communicated through our regular research and alerts.
Here are some FAQs about this website and Dashboard. For help, please reach out to us.
Does my A Patient Prospector subscription include investment advisory services?
No. A Patient Prospector subscriptions provide access to research and publication content. Investment advisory services are offered through MPS pursuant to a separate advisory agreement and are subject to separate advisory fees.
Will an advisory account follow every A Patient Prospector Buy/Sell Alert or Goal Price?
Not necessarily. A Patient Prospector research is general and is not tailored to any particular investor. Advisory recommendations and portfolio decisions may differ based on a client’s investment objectives, financial circumstances, strategy, restrictions, tax considerations and other relevant factors.
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