Guru Index Launched to Track the Performances of Deep Discounted Value Stocks

A stock market index called Guru Index" has been launched to track the performances of deep discounted value stocks. Guru Index is composed of up to 25 stocks. They are selected from the stocks that went down in prices after gurus" have bought. Since its launch on June 29, 2005, Guru Index has outperformed S&P500 by 4%. Gurufocus.com.

(PRWEB) July 26, 2005 -- To track the performances of deep discounted value stocks, GuruFocus.com launched a stock market index called Guru Index". Guru Index is composed of up to 25 stocks. These stocks are selected from the stocks that gurus" have bought. These gurus include Warren Buffett, George Soros, Edward Lampert, James Gipson, Bill Miller and 16 other best investors in the world.

Only if the price of a stock goes down by at least 25% after being bought by gurus, or the price did not go up after being bought by several gurus, it may qualify for Guru Indexs strict requirement for deep value". One month after its launch on June 19, 2005, Guru Index has gone up 5.5%. During the same period the S&P500 was up only 1.5%.

When you buy stocks at the prices lower than what Warren Buffett has paid, you have more chances to go up." Said Dr. Charlie Tian, the research director at GuruFocus.com. Although time is too short to make judgment on Guru Index, but as value investors, we believe that deep discounted stocks will outperform the market average."

If there are not enough deep discounted value stocks, Guru Index may have cash in its portfolio. Sometimes cash is the best investment." Said Dr. Charlie Tian.

As of today, Guru Indexs portfolio includes discount retailer Wal-Mart, financial giant Citigroup and retailer Pier Imports, which is one of Warren Buffetts holdings. The complete portfolio is listed at http://www.gurufocus.com/guruindex.php.

About GuruFocus.com

http://gurufocus.com is the website that tracks the stock picks of Warren Buffett, George Soros and other guru investors like Bill Nygren, Mason Hawkins, Ken Fisher, David Dreman, Martin Whitman, James Gipson, Robert Rodriguez, Ronald Muhlenkamp, Wallace Weitz, William, Ruane, Edward Lampert, Edward Owens, Richard Aster, Jr, Robert Olstein, John Keeley, Brian Rogers and Tweedy, Browne.

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