Keith Gill, aka Roaring Kitty, aka DeepF—–gValue, aka the slayer of short-sellers, is suddenly one of the most influential stock pickers in America.
After he inspired a dizzying 400% rally in GameStop Corp. that shook Wall Street this past week, Gill has built a legion of passionate followers on Reddit and YouTube who gush over how he made them — at least temporarily — rich. Now, knowing what other stocks, or kinds of stocks, he likes is a matter of investor interest.
“I’ll drop this bomb on you right at the start, I’m a value investor and I feel like some of you are rolling your eyes now and laughing at me,” Gill said in his first investment style video. “I’m not in the camp that thinks value’s been under-performing, I actually think it’s been tremendously successful over the past decade.”
Unlike what you might expect from a typical value investor, Gill was outright dismissive of discounted cash flow modeling, calling it a “waste of time.” And Gill embraced the use of technical analysis, using stock price charts to find good entry and exit points for his positions, a technique often dismissed as a form of financial voodoo by followers of value-investing icons like Benjamin Graham.
Gill gives his own value investing criteria in his second introductory video. And like the CRSP Index, he too relies on five factors, albeit using them as guidelines rather than rigid rules.
- A discount: “It’s often in relation to my crude fundamentals based value, but sometimes it’s just based on the chart.”
- Leverage: “I don’t shy away from leveraged companies, I know some people do, but the way I see it is that that’s where some of the best opportunities are.”
- Insider buying: “I weight this quite heavily I’ve learned, especially during market selloffs, and what I find is that any insider buying is better than no insider buying.”
- Insider ownership: “Generally, higher insider ownership is better, I like to see at least 20%.”
- Confidence: “It’s a simple introspective question, but I find it’s just really helpful for keeping myself honest.”
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