The Smart Investor Model Portfolio is diversified across all economic sectors as well as all geographies – however, since its goal is to offer solid long-term investing ideas, the Smart Investor stocks are chosen from the Developed Markets equity universe. For the same reason, the Model Portfolio is skewed towards large- and mid-cap stocks.We choose stocks with low to medium Beta, placing the emphasis on stable performance, to anchor your portfolio even in the most volatile markets. Our goal is to have a diversified collection of 25-35 stocks that have great long-term potential. By long term we mean that stocks are selected for their attractiveness over the next 12+ months.

Our analysis starts with the Smart Score, which is a proprietary quantitative stock scoring system created by TipRanks (https://www.tipranks.com/glossary/s/smart-score). Choosing the best-rated Smart Score stocks, we then utilize the vast and unique TipRanks datasets to filter for future upside. Smart Investor considers companies’ financial health, emphasizing strong and stable fundamentals such as profitability, solvency, cash balance, etc. We also factor the stocks’ relative valuation into the Portfolio construction strategy, as overvalued stocks often have less room for upside than their peers.The Smart Investor Model Portfolio offers investors a list of financially sound companies that provide an opportunity for a solid return on investment.

We remove companies from the Smart Investor Model Portfolio when our data indicates that the potential for their stocks’ upside has diminished. If the company’s Smart Score has fallen below 7, it will be a likely candidate for deletion.  However, we also consider several other factors, such as relative valuation, Analyst price targets, changes in Analyst ratings, earnings announcements and outlooks, Insider trades, and News signals. As we strive to maintain a diversified and balanced portfolio, the deletion and replacement process also takes into account the companies’ size and industry.