Our Long Idea reports aim to identify firms that, despite market fears, unimpressive GAAP earnings, and other noise, have profitable businesses and highly undervalued stock prices. They aim to show investors how to use our research and display the transparency of our analytical process. However, we understand that at the end of the day, investors care about one thing: performance.
2019 was an average year for our Long Ideas. Our picks, including reiterated ideas, averaged an 11% return over the course of the year, exactly matching the S&P 500. Just 19 of our 56 Long Ideas outperformed the S&P 500. On the other hand, we picked very few losers, as just 14 of our 56 picks had negative returns.