I've been investing pretty successfully over the past 6 years (I'm currently 39). My strategy is to target stocks trading below their historical valuation metrics, typically dividend payers, hold until they revert to better valuations, sell or reduce position size, and repeat. I recently analyzed my performance (which spanned three different brokerages) with the help of Claude, and had annualized XIRR of +22% vs. +17% for the S&P. Over this time, I've definitely had a few misses, but way more hits.
For example, today I sold a sizeable position in MRK @ $153, which I purchased \~1.5 years ago for \~$80. A month or so ago, I sold TGT in the $130s after purchasing in the $80s a year prior.
Earlier this year, I purchased T, NOW, MSFT, CRM, and BBY, which are all up 20%+ since.
More recently, I purchased MCD, LOW, and FIS.
I'd like to continue this strategy, but as my portofolio size and number of positions grows (and also the market does), I am finding it harder and harder to find new stocks. I typically focus on US stocks and use ETFs for international.
Anyone else focus on this strategy? Any recommendations?