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More concept, ideas and investment strategies with Jitta

The beginning of each year marks a long-awaited occasion, during which we reveal the performance of Jitta Ranking Top 20 stocks.

Jitta Ranking is our proprietary stock-ranking algorithm that follows Warren Buffett’s “buy a wonderful company at a fair price” principle and is determined, primarily, by Jitta Score (quality) and Jitta Line (fair value).    

Last year, the average return achieved by Jitta Ranking in 7 countries, including the U.S., Thailand, Vietnam, United Kingdom, Japan, Singapore and Hong Kong, outperforms the index.

The first 20 stocks on each country’s Jitta Ranking, or Jitta Ranking Top 20, bring in an average of 30.75% return, while market indices of these 7 countries together generate around 23.71%.

Jitta Ranking also fares well in each individual country, beating the market in the U.S., Japan, Singapore and the U.K. while achieving impressive 2-digit returns in Thailand, Vietnam and Hong Kong—only trailing behind market indices by a miniscule margin.

Still, in the long run, our backtests and forward tests prove how effective Jitta Ranking is at beating market indices in each country.

At the heart of the Jitta Way investing strategy lies a simple method: Buy a wonderful company at a fair price. Which, in this case, is buying the first 20-30 stocks on Jitta Ranking for optimal risk diversification, holding them for 12 months and rebalancing once a year. Such simple strategy can help grow your investment continuously and sustainably.

To demonstrate the validity of this investing method, we’ve published detailed backtests and forward tests of Jitta Ranking, from 2009 to present, along with annual lists of Jitta Ranking top 20 stocks here https://goo.gl/Er52xt. We update the performance of each stock on the list at the beginning of every year.  

It was a bull market in the U.S. The S&P 500 rose 19.4%, the highest in 4 years. But Jitta Ranking did even better, achieving impressive 34.46% last year.

Last year was the golden year for the Stock Exchange of Thailand, whose index reached an all-time-high of 1,700 points, prompting stellar performances of both Jitta Ranking and SET50.

Another blockbuster year in Vietnam’s stock market saw the VN index spiked 48.03%, becoming Asia’s highest and the world’s third top performer.

Japan’s Jitta Ranking Top 20 beat the Nikkei 225 to the ground last year, delivering a return of 57.19% while the index gained 19.10%. Both reflected the country’s bullish trend.

Although Singapore’s stock market made its first major comeback since 2012, Jitta Ranking still managed to outperform the index with its 35.98% gain.

Thanks to the popularity of Tencent, Hong Kong’s stock market pulls out the best performance in a decade, surpassing 30,000 points for the first time since 2007 with 35.99% gain.

Things are pretty lively over in the U.K., too, with the FTSE 100 hitting a new record, making 7.63% gain and Jitta Ranking beating that number with 31.52%.

Start investing with Jitta Ranking

Our backtests and forward tests show that Jitta Ranking isn’t just an effective investing method, but also an incredibly simple one that saves time and is suitable for everyone, regardless of their years in the stock market.

If you want to simplify your investment, but still want satisfactory returns in the long run, Jitta Ranking can help you pick “wonderful companies at a fair price”, diversify and rebalance your portfolio without much effort at all.    

Get started by visiting https://www.jitta.com/explore?country=US for today’s top stocks on Jitta Ranking. Count from left to right, top to bottom to find the first 20-30 stocks.   

Then divide your fund 20 to 30 ways and allocate to each stock equally. If you buy 20 stocks, each would weigh around 5% of your portfolio. If you buy 30, each would weigh around 3-4%.

A year after your first trade, it’s time to rebalance. On that day, you’ll need to revisit Jitta Ranking again to find out which stocks don’t make the cut this time around; they will promptly be sold. Any profits you’ve made will be combined with your initial investment to purchase new stocks that make it to the top.

Repeat this same process year after year and you can boost your investment performance, achieving great long-term returns with little effort.

Why buy so many?

Jitta Ranking Top 5 and 10 may produce higher annualized returns than Jitta Ranking Top 20 or 30.

But those come with higher volatility, too.

If you only buy the first 5 stocks on Jitta Ranking, and one of them hits rock bottom…that means 20% of your portfolio lost its value.

Those unable to withstand interminable drawdowns may panic and prematurely sell their stocks, hurting their returns in the long run.    

But when you buy 20-30 stocks, which is the optimal amount for Jitta Ranking-based investing, you won’t be losing sleep over extreme volatility.

No.

You’ll be investing in so many types of businesses in so many different industries that your portfolio will be guarded against industry-specific risks, and if affected, won’t severely cripple the growth of your investment.

Because, when you buy top stocks on Jitta Ranking, you are buying “wonderful companies at fair prices”. Any unexpected changes in one company’s fundamentals won’t mean the end of your fortune, as the rest of your holdings could potentially make up for it.

Why rebalance only once a year?

The best thing about the Jitta Ranking investing method is not having to time the market. You trade just once a year.

‘Cause when you start out buying fundamentally strong companies, it’s better to wait until you see complete annual financial reports before making any trading decisions. Otherwise, it could cost you precious profitable opportunities.

Plus, you’re never right 100% of the time. Sometimes you make great decisions. Sometimes you make mistakes. In the end, rebalancing frequently may yield similar results as would rebalancing once a year, but you’ll end up paying more trading commissions, which directly eat into your profits.

If you want to start investing long-term or have plans to rebalance your portfolio in the near future, you can view the first 20-30 stocks on Jitta Ranking here.

Or if you feel that buying and selling 30 stocks every year is still too much work, Jitta Wealth, our automated portfolio-management service, could manage everything for you. Find out more about this novel technology at wealth.jitta.com.

Happy investing!