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If you are like me and enjoy reading posts in this sub, you have likely seen several comments over the past six months along the lines of:
"terrible year for value investing"
"value investing has once again delivered absolutely garbage performance"
"Value investing is clinically dead"
"is value investing an impediment to life-changing wealth creation".
The message is clear. Many people now argue that value investing no longer works.
We decided to test this using a systematic approach. No gut feelings, only a rules-based scoring system that evaluates stocks based on core value investing principles. Starting on 1 August 2025, we selected five stocks on the first day of each month using an algorithm. Six months in, we can now report early results.
**Stock selection appraoch**
We posted our [stock selection approach](https://www.reddit.com/r/ValueInvesting/comments/1ngp8l7/built_a_grahaminspired_value_framework_that/) in this sub previously, but briefly: every month, we run 500-plus stocks through a scoring system based on traditional value metrics like P/E and P/B, DCF validation to identify discounts to intrinsic value, and quality metrics like ROE, margins, and cash flows. Before anything gets scored, it has to be profitable with positive ROE and net margins. The algorithm spits out the top 5 each month.
**Performance tracking approach**
This part matters more than most people realize. Many investment blogs show cherry-picked returns without explaining how they were calculated.
In our approach, every stock is compared to SPY during its specific holding period. It's the difference between honest accounting and marketing.
Example: When we bought Deckers Outdoor in September at $119.63, it fell to $119.34 by January, resulting in a 0.24% loss. But what did SPY do during those exact 152 days we held the position? It gained 7.89%. So our alpha for that specific position was -8.13%. We underperformed the benchmark on that trade, and we report it that way.
We also use dividend-adjusted pricing for both selected stocks and SPY.
The alpha we're reporting is the investment-weighted average of each position's outperformance or underperformance relative to its benchmark period. It's the real number.
**Results**
30 positions - 60% win rate.
6.87% average return - 2.06% alpha versus SPY
* Systematic value investing beat the market over 6 months with boring stocks.
* The win rate is not spectacular, but winners more than compensate for the losers.
* Value investing delivered higher alpha than our [dividend investing strategy](https://www.reddit.com/r/dividends/comments/1qwimuo/six_months_of_transparent_dividend_investing/), although the dividend approach achieved a higher win rate.
* Some stocks got selected multiple times.
* Six months prove nothing in the long term, but early alpha suggests the methodology is sound.
**Complete Transparency: All 30 Positions**
Below is every single position from the past six months. Every winner and every loser. This is what real systematic investing looks like when you track it honestly.
|**Stock**|**Month**|**Entry Price**|**Current Price**|**Days Held**|**Return**|
|:-|:-|:-|:-|:-|:-|
|NEM|2025-09|$74.40 |$112.35 |152|51.01%|
|DECK|2025-12|$92.02 |$119.34 |61|29.69%|
|REGN|2025-09|$580.70 |$741.45 |152|27.68%|
|EPAM|2025-11|$163.54 |$208.60 |91|27.55%|
|REGN|2025-10|$599.19 |$741.45 |122|23.74%|
|CF|2026-01|$77.34 |$93.23 |30|20.55%|
|DECK|2025-10|$101.18 |$119.34 |122|17.95%|
|MOH|2025-08|$155.13 |$179.59 |183|15.77%|
|DECK|2026-01|$103.67 |$119.34 |30|15.12%|
|REGN|2025-11|$651.80 |$741.45 |91|13.75%|
|SNA|2025-09|$325.24 |$366.11 |152|12.57%|
|CF|2025-10|$85.92 |$93.23 |122|8.51%|
|PHM|2025-08|$116.32 |$125.09 |183|7.54%|
|RMD|2026-01|$240.87 |$258.31 |30|7.24%|
|EOG|2026-01|$105.01 |$112.13 |30|6.78%|
|PHM|2026-01|$117.26 |$125.09 |30|6.68%|
|PHM|2025-11|$119.87 |$125.09 |91|4.35%|
|FISV|2025-12|$62.69 |$63.73 |61|1.66%|
|DHI|2025-11|$149.08 |$148.84 |91|\-0.16%|
|DECK|2025-09|$119.63 |$119.34 |152|\-0.24%|
|REGN|2025-12|$750.11 |$741.45 |61|\-1.15%|
|PHM|2025-12|$126.92 |$125.09 |61|\-1.44%|
|EOG|2025-08|$114.40 |$112.13 |183|\-1.98%|
|PHM|2025-09|$132.02 |$125.09 |152|\-5.25%|
|LEN|2025-08|$115.49 |$109.35 |183|\-5.32%|
|PHM|2025-10|$134.16 |$125.09 |122|\-6.76%|
|CARR|2025-08|$66.38 |$59.58 |183|\-10.24%|
|ADBE|2025-10|$343.72 |$293.25 |122|\-14.68%|
|PAYC|2025-12|$161.81 |$134.75 |61|\-16.72%|
|PAYC|2025-11|$187.09 |$134.75 |91|\-27.98%|
*Disclaimer: This is not financial advice. We are sharing our investment strategy and results for educational purposes. Past performance does not guarantee future results. All investing involves risk, including the loss of principal. Do your own research and consult with a financial advisor before making investment decisions.*