To demonstrate how QAV works, we’ve been running an example portfolio since the beginning of the podcast.
The goal of QAV is to out-perform the All Ords and achieve an average 19.5% annual compound growth with relatively low risk and low effort. By comparison, Warren Buffett has averaged a 19.7% annual compound growth over the last 60 years.
We’re not trying to shoot the moon. The All Ords average growth is around 10% p.a. So we want to out-perform it by roughly 2x year after year. Some years we will be up and some we will be down (that’s the nature of investing) but over the long term, we want to double the All Ords.
This is a list of all of the stocks we have owned over the duration of the portfolio and their respective performance.
QAV VALUE INVESTING CHECKLIST
The core of QAV is our value investing checklist.
It contains ~20 data points that we grab from publicly-available sources and then we run some analysis over them to determine each stock’s “QAV Score”. Any stock which gets a final score higher than 0.1 goes on our buy list. When we have room in our portfolio (which we limit to 15-20 stocks), we buy the stock with the highest QAV score.
You can watch some videos about how it works.
QAV Club members get regular updates of our QAV Scorecard List and access to our Excel spreadsheet checklist so they can run their own evaluations.