Firstly, I will admit that I do not have a Gurufocus membership and that I get a commission for recommending the product. Still though, as an investor I have used Gurufocus for many of my trades and I will probably get a lite membership going forward…
Gurufocus is marketed as a tool to find value trades and make you rich. i do not think this is the case. You will not get rich by using the tool alone.
Also, the informational advantage of the screeners is pointless, because everyone has access to them, thus making them redundant.
I think gurufocus shines as a quick referencing tool. It works as a tool that allows you to quickly assess an investment by checking the screeners.
Great Tool For Screening Stocks Quickly
For example, in the summer I was looking at putting some money into a gold mining company. I wanted a small-cap company, with lots of cash, no debt and reasonable growth prospects.
After drawing up a list of about ten candidates, I plugged them into Gurufocus and found the right company within minutes. The screeners made it easy to weigh up each company - I didn’t have to trawl through stock screeners. It was all there and presented in a way that was visually appealing.
The time between creating my list and putting some capital aside into the gold mining company was minimal - about an hour.
Is Gurufocus Good Value?
I think Gurufocus is expensive at $399 per year. You do have access to many screening tools, however you can access a wide range of tools on Finviz for almost nothing in comparison.
If you are a professional investor, you could justify the price easily. However, I think the price is steep for the amateur trader.
Again, you won’t get rich by buying a subscription alone!