How we invest: The Jitta Way investing approach

How We Invest

It’s usually the simplest things that make the most difference.

While dizzying technical charts, noisy expert projections and obscure financial numbers are useful to some, we don’t think you need those to succeed in the stock market.

At Jitta, we have a bullheaded belief that stock investing isn’t as complicated nor difficult as Wall Street makes it out to be. Just a simple, sound strategy that’s executed with great discipline and your financial future is set.

There’s no strategy as simple and effective as Warren Buffett’s “buy a wonderful company at a fair price.” And it’s this exact concept that forms the cornerstone of our technology-enabled investing approach, the Jitta Way.

The Jitta Way is all about simplification. It’s about leveraging the power of modern technology to make investing in “a wonderful company at a fair price” less exclusive, less time-consuming and more profitable for every one of us.

The Jitta Way empowers you to invest like an experienced value investor but with much less effort and, as a result, gives you the confidence to take charge of your personal finance and future.

When you adopt the Jitta Way, you leave the most laborious and complicated tasks to our technology. You sit back while the system processes millions of numbers from the financial statements and translates them into Jitta Score and Jitta Line, two plain-and-simple indicators to help you determine a “wonderful company at a fair price”.

The two indicators then form Jitta Ranking, a stock classification algorithm that prioritizes high-quality, undervalued businesses. Not only does it help you find the most “wonderful company at a fair price” faster, but also help you achieve better returns in the long run. Just invest in the first 30 stocks on Jitta Ranking and rebalance the portfolio once a year, you—and anyone—can achieve index-beating returns, demonstrated by our backtest.

The Jitta Way’s passive and systematic approach delivers big results with so little effort, thanks to two key characteristics. First, it minimizes downside risks stemming from human biases—your own hesitation, someone else’s forecasts or the market’s sporadic sentiments—by using only proven, verifiable facts from the financial statements. Second, it minimizes trading, which means less brokerage fees and more profits in your pocket. Together, they help boost long-term profitability in ways active investing can’t.

More importantly, it levels the playing field. It gives us regular folks a chance to succeed in the stock market without Warren-Buffett expertise or $20,000 to spend on data subscription.

It allows us to dream big, knowing there’s a real possibility we can achieve it. Which means a life that was once reserved for the privileged few is now within reach for us all.