Financial blogger Eddy Elfenbein, whose annual list of 20 stocks has outperformed the S&P 500 in eight of the last nine years, spoke with CNBC PRO about the simple investment principles he uses to select winning stocks.
"I think too often investors get too buried in the numbers and P/E ratios. What all those numbers reflect is, is this an outstanding company? Is this a company that has a consistent track record of growing their earnings, growing their sales? Do they have their balance sheet under control? That's really what you want to get to," Elfenbein said during the in-depth conversation with CNBC's Mike Santoli.
Because of his strong track record, Elfenbein was able to launch his investment approach as an exchange-traded fund in September, the AdvisorShares Focused Equity ETF. His blog is Crossing Wall Street.
Elfenbein also discusses:
- Why he decided to peg his fee structure to his performance.
- His career path outside of Wall Street.
- Some of his favorite long-term investments.
- Why "buy and hold" works.
- Timeless investment lessons for every market participant.
PRO subscribers can also read the entire transcript of the exclusive interview below.