What do Warren Buffett
and Peter Lynch
have in common, besides two of the greatest investment records in history? They both have spoken about their admiration for one of the best investment products available on the market, the Value Line Investment Survey. Personally, I have no affiliation with the company that publishes the product other than being a customer in the past. For new investors, this can be a great resource if you are interested in actually getting to understand some of the numbers that matter most when valuing a stock.
What is the Value Line Investment Survey?
The flagship newsletter, the Value Line Investment Survey tracks 1,700 individual stocks across ninety different industries. Each week, the Value Line staff analysts update a batch of 130 stocks – how you receive the updates depends on whether you choose the web option or the print version. The single sheet reports include a tremendous amount of financial data including sales, gross profits
, operating profits
, tax rates, shares outstanding, return on equity
, return on invested capital
, debt-to-equity ratios
, average price-to-earnings ratio
s over time, dividend yields
, payout ratios
, management ownership, and much, much more. This allows you to get an idea of the trends facing the business – are margins being squeezed? If so, you could try to figure out if the problem is temporary of permanent as that would have a big influence on your valuation.
You can download free versions of the 30 stocks in the Dow Jones Industrial Average from the Value Line web site to give you an idea of what the product will be like.
How Much Does the Value Line Investment Survey Cost?
The print version is a little more expensive than the online but you can sign up for a 13 week trial for between $65 and $75 and an annual subscription for $598 for one year or $1,395 for a three year subscription to save a good deal of money. You might want to check with your accountant because it’s possible that some or all of the expense might be tax deductible.
Other Value Line Resources and Products
There are numerous other Value Line products available including a Small and Mid-Cap edition, mutual fund edition, options, convertibles, et cetera. For new investors, these don’t make a lot of sense unless you have specialized knowledge or a particular interest.