I Tried Value Investing for 30 Days

Is value investing really the smartest way to grow your money in the stock market? I ran a 30-day experiment to find out — and the results surprised me.

First things first — what exactly is value investing?

Value investing is one of the most widely used strategies in the stock market, most famously practiced by Warren Buffett. The core idea is simple: find stocks that are undervalued by the market. In other words, their current price is lower than their true worth based on the company’s fundamentals.

This “true value” is calculated using metrics like free cash flow growth, earnings per share (EPS), and revenue growth — among others.

The Setup

The rules for this experiment are simple: No selling!

Using the value investing criteria, I researched and picked the following 8 stocks to hold for the past 30 days for this experiment using 10 thousand dollars spread evenly.

Stock:	Reasoning:	Stocks Starting Price:
$AMZN	Revenue growth YOY of 9%, EPS growth of 62% YOY, P/E ratio of approx. 32	$188.99
$GOOG	Revenue growth YOY of 12%, EPS growth of 48% YOY, P/E ratio of approx. 18! (Crazy low P/E Ratio)	$163.85
$MSFT	Revenue growth YOY of 13%, EPS growth of 82% YOY, P/E ratio of approx. 37	$391.85
$NVDA	Revenue growth YOY of 78%, EPS growth of 62% YOY, P/E ratio of approx. 51 (Incredibly fast growing)	$111.01
$META	Revenue growth YOY of 16%, EPS growth of 37% YOY, P/E ratio of approx. 21	$547.27
$INTU	Revenue growth YOY of 17%, EPS growth of 33% YOY, P/E ratio of approx. 63	$624.12
$NFLX	Revenue growth YOY of 12%, EPS growth of 25% YOY, P/E ratio of approx. 46	$1101.53
$ASML	Revenue growth YOY of 46%, EPS growth of 93% YOY, P/E ratio of approx. 30	$677.27

I usually track the week to week performance of my experiments, but this is my first one and this strategy is fairly risk averse so no major swings took place or did they? , I’ll cut to the results.

30 Days Later… Results

Stock	Percent Change
$AMZN	+6.35%
$GOOG	+3.50%
$MSFT	+14.89%
$NVDA	+18.27%
$META	+14.58%
$INTU	+15.38%
$NFLX	+7.61%
$ASML	+8.15%

Because this experiment was started during a stock market sell-off, these results were incredible. The portfolio increased a total of 11.09% during the thirty days.

Each one of these companies share 2 main characteristics: their moat is HUGE and their earnings keep on growing on a consistent basis. This experiment shows what investing in these popular, even obvious plays during a sell-off can do for your money.

As with all my experiments I will be continuing this portfolio and checking in every once in a while to see it’s performance. I will be adding or selling positions based solely on value investing criteria for the continuation of this experimental portfolio on a weekly basis.

Hope You Enjoyed!

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