This Deep Value Investor Reveals His Top Personal Holdings

Real Money’s Paul Price explains why these 12 under-followed, under-the-radar gems beat all major indexes in January.

The list of stocks is made up of names that rarely grab headlines: Wolverine World Wide  (WWW) – Get Free Report, Generac  (GNRC) – Get Free Report and even Cracker Barrel Old Country Store  (CBRL) – Get Free Report.

But what all 12 of the stocks have in common is their gains over January–every single stock.

Wolverine World Wide climbed more than 38% from Jan. 4 to Jan. 31; Cracker Barrel, by nearly 15%.

The list was Real Money Pro columnist Paul Price’s recently compiled “Dandy Dozen” stocks that make up his top personal holdings. The full list of stocks can be found here.

Price gave a one-month update on the performance of the list, and showed that through January, not one of the 12 names lost ground, though a single company made a minimal gain of 0.32%. Wolverine enjoyed the highest bounce. Some rose in the teen percent range, while others a bit higher or lower. The equal-weighted average of the dozen stocks clocked in at 13.49%.

“It was a tremendous month,” Price said by phone on Thursday afternoon in an interview about the list, adding that so far, February has been even better.

Price’s stocks outperformed the Dow Jones industrial average by 66.8%, the S&P 500 by 139%, and the Nasdaq Composite by 33.3%.

“Those are real numbers,” he said. “All 100% of my top positions were in positive territory, even without accounting for any dividend income.”

But unlike other popular picks touted in major financial news media, Price’s list is empty of big tech mega-cap names like Apple  (AAPL) – Get Free Report, Microsoft  (MSFT) – Get Free Report or Nvidia  (NVDA) – Get Free Report.

“The reason I go there is that the companies that are less followed–that don’t have 50 analysts covering them–can get the furthest away from their proper values. A lot of the ones I have are very under-followed and very under-known by most investors. The fewer analysts, the more chance you have of discovering a hidden gem.”

To take advantage of what Price calls the “snowball effect” of investing, he employs a covered-call strategy that he explains in detail in his columns.

But he said the essence of his investing strategy is pretty simple: Know what a stock is really worth and fight to urge to let emotions of losses–or hot gains–get the best of you.

“What is a stock really worth on a normalized value?” is the question Price says is key to starting a position.

A doctor, he said, for example, knows what a normal range is for a patient’s temperature and knowing the value of a stock is no different–when the numbers veer too much one way or the other, they are bound to either come back to a normal number–or something big, and possibly bad, is going to happen.

“If you take someone’s temperature, and it’s 103 degrees, that is not normal.”

To find out the rest of the stocks on Price’s “Dandy Dozen” list as well as more on his investing philosophy click here.

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