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Author: Mbauer Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 252193  
Subject: My first year of mechanical investing Date: 8/22/2000 7:03 PM
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When I started investing three years ago, I had no clue what I was doing. I started by trying to dig through all of the Mutual Funds to find the best performers because I had believed all of the rhetoric about how great Mutual funds are. Then, two years later, having been subjected to subpar and even negative returns I stumbled upon a website, The Motley Fool. I started reading and I couldn't believe it. I thought that I was simply picking the wrong mutual funds. But the TMF told me that I had picked the wrong investment vehicle not the wrong Mutual funds. As I read I came upon an article about Mechanical investing and I thought this is for me. All that I have to do is check my stocks once a month (or for whatever holding period I choose), make the necessary changes and I can make money even beat the major indices? So I thought what the heck I'll give it a try. I chose the RS26 stock screen using the top 5 stocks on the list with monthly rebalancing. That was last September (Sept 12 to be exact). To date I have earned a whopping 360% return on that initial investment. WOW!! Now I know that I can't expect those kind of returns all the time, there might be years when I even lose money. But to be able to easily and succesfully invest is a blessing. Thank you David and Tim for everything that you have done for us, the individual investors.

P.S. I recently reworked my portfolio to include the PEG26 screen. Let's see how I do in the next year.
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Author: StanleyManly Two stars, 250 posts Motley Fool One Everlasting Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 77629 of 252193
Subject: Re: My first year of mechanical investing Date: 8/22/2000 7:19 PM
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Recommendations: 128
Now I know that I can't expect those kind of returns all the time, there might be years when I even lose money. But to be able to easily and succesfully invest is a blessing. Thank you David and Tim for everything that you have done for us, the individual investors.

Mbauer,

Much as you, I used mutual funds until about two years ago when I stumbled across TMF and the Foolish Workshop. This gave me my opportunity to learn about MI and the various capabilities.

However, let's give credit where credit is due. David and Tom (not Tim) have provided the forum for discussion of this topic. However, they have pointed out many times that they are not fans of Mechanical Investing. The true thanks should be going to people like Sparfarkle, Moe Chernick, Peter Kuperman, Sux2BeU, klouche, gritton, bdfinney, RCarr, JackCade, TMFElan, Rayvt, buckaroobanzai, arezi, TMFSynchronicity, and countless others who have devoted their time and energies to developing the screens you have seen here.

Some thanks should also go to Robert Sheard, the original supporter of workshop ideas who left for greener pastures, but left a legacy of supporters for MI that continues to this day.

I like Dave and Tom, but I like these guys much better.

Regards,
StanL

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Author: Mbauer Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 77630 of 252193
Subject: Re: My first year of mechanical investing Date: 8/22/2000 7:32 PM
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Thanks for your comments Stan. I agree, a lot of thanks go out to all of these people. Without them I wouldn't be in the great position that I am in now. Let me restate the praise that I gave to Dave and Tom. Thanks Dave and Tom for providing a forum which individuals can come to and express thier opinions and share their knowledge in investing.

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Author: MRHOG Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 77631 of 252193
Subject: Re: My first year of mechanical investing Date: 8/22/2000 7:44 PM
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I find it ironic that the Gardners are not fans of Mechanical Investing when it was their articles and book on the Foolish 4 technique that got me interested in mechanical investing in the first place.

Hog

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Author: TMFElan Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 77632 of 252193
Subject: Re: My first year of mechanical investing Date: 8/22/2000 8:09 PM
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I find it ironic that the Gardners are not fans of Mechanical Investing when it was their articles and book on the Foolish 4 technique that got me interested in mechanical investing in the first place.

Actually one of the brothers does support the ideas of mechanical investing. For the life of me I can't remember which one because I haven't discussed it with them personally.

They are both plenty busy with their own TMF areas - Rule Breakers, Rule Makers, the radio show, and hundreds of other things. So I guess they're satisfied to let this self sustaining community thrive without their direct participation.

Elan

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Author: Sux2BeU Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 77634 of 252193
Subject: Re: My first year of mechanical investing Date: 8/22/2000 8:31 PM
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I find it ironic that the Gardners are not fans of Mechanical Investing when it was their articles and book on the Foolish 4 technique that got me interested in mechanical investing in the first place.

Hog


Not true at all.

When I spoke with David for almost an hour this last January when they were in Houston for the radio show I asked him point blank about MI and FW. He said that he loved our creativity and our inventiveness. He also said that we filled an important void in the type of investing that they couldn't provide support for. He is stunned how huge we have become, especially after the loss of Sheard.

He said he only disagreed with blindly following a method or selecting stocks that hadn't been researched before. He's concerned with niave investors just hopping on and buying stocks. When I challenged him on researching the screens and making them our auto-stock pickers much like a Rule Maker or Rule Breaker would look at a broad category of stocks and then apply some mechanical and emotional rules, he conceded that if that is your method and you have thuroughly researched it and you feel confident in its selections then you can't deny it.

He also realizes that although the folks like me that are around for a long time don't really buy stuff like new people do, we drive content. That's why Soapbox was created--for Fools like us to produce content and take advantage of the medium. They know the MI crowd is where the big guns are now.

They respect us and we respect them. Different yet the same.

Sux

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Author: NoSpamAC Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 77635 of 252193
Subject: Re: My first year of mechanical investing Date: 8/22/2000 8:56 PM
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" .... However, let's give credit where credit is due. David and Tom (not Tim) have provided the forum for discussion of this topic. However, they have pointed out many times that they are not fans of Mechanical Investing. The true thanks should be going to people like Sparfarkle, Moe Chernick, Peter Kuperman, Sux2BeU, klouche, gritton, bdfinney, RCarr, JackCade, TMFElan, Rayvt, buckaroobanzai, arezi, TMFSynchronicity, and countless others who have devoted their time and energies to developing the screens you have seen here.
Some thanks should also go to Robert Sheard, ..."

_______________________________________________
I'm totally agree with StanL. I have been on the sideline and have been just a 'reader' for a very long while and this MI group is simply amazing. I would like to give those listed and so many more a great big THANKS for the hard work, a labor of love for many others like me. In the end, we all will be educated, somtines amused, but especially enriched by this MI experience.

All who agree with me would you please click on the recommand button, just once per vote, to voice your agreement & thanks.

Sincerely,

Art.

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Author: BassAttack Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 77636 of 252193
Subject: Re: My first year of mechanical investing Date: 8/22/2000 9:25 PM
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I have been on this site since message 5630.I owe an awful lot to the people on this board,however I will not forget who made it possible for this board and this community to exist.Wayne/BassAttack

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Author: rlock3532 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 77639 of 252193
Subject: Re: My first year of mechanical investing Date: 8/22/2000 10:13 PM
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Couldn't agree more with what everyone has said. But for those of us who have only recently started, I'm just curious - where did the mechanical investing concept at TMF begin. Given the messages attached, it sounds like Robert Sheard had a big hand in it, but I'm curious about the way the workshop developed the Value Line criteria, etc. and when did it start.

Bob

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Author: Baltassar Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 77646 of 252193
Subject: Re: My first year of mechanical investing Date: 8/22/2000 11:03 PM
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The Fool has all the Workshop reports archived back to 1997. There is an additional year of material in the Foolish Four Archive (Robert Sheard was [T]MFDowman). Sheard was the proponent of Valueline as the universe for MI, and of IBD rankings as well. He's the father of MI, no doubt about it. Yet the differences between the old days (1996-1998) and now are just stunning in terms of intellectual horsepower. The New Testament begins with the arrival of Sparfarkle in, IIRC, the fall of 1998.

Quite a ride.

Baltassar

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Author: catscanner Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 77662 of 252193
Subject: Re: My first year of mechanical investing Date: 8/23/2000 3:32 AM
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Well, I've gone ahead and done it. Having traded Unemotional Growth with my wife's money [oh no honey, it's ok, I know what I'm doing :)] starting 3/99 with $4K I turned it into $11.5K. Pulled out $7.5K to pay down credit (smart move) in late 2/00 (good/lucky timing). Now I'm at it again but with my $5K in ROTH funds. I mean, why let the mutual fund boys play with my money? It's so much more fun to get my hands dirty...

Even though I did great (understatement) with the UG style, which I'm still continueing, I decided to go with a 50/50 blend of Formula90 and RS26W, monthly. Hey, I like to trade, what can I say. I probably will start a quarterly PEG26W portion next year after I transfer more funds from the mutuals.

So, for all you new fools out there, get your feet wet, the water's fine! Every once in a while some big wave comes along and knocks the air out of you, slams you into the bottom and stuffs sand up your nose, (think bodysurfing - hey, I'm in California), but, it's a nice ride.

I'll be glad to update the board later on my trials and tribulations...

cat

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Author: Foollabaisse Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 77737 of 252193
Subject: Re: My first year of mechanical investing Date: 8/23/2000 5:17 PM
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Recommendations: 51
All who agree with me would you please click on the recommand button, just once per vote, to voice your agreement & thanks.

All who think that pandering for recs is unseemly please click on the recommand button, just once per vote (or, if you really really really dislike pandering, click twice) , to voice your agreement & thanks.

Rgds, Foollabaisse.



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Author: Taxman1st Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 77751 of 252193
Subject: Re: My first year of mechanical investing Date: 8/23/2000 8:33 PM
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RE: "recommand button"

Foollabaisse,

Though it would be nice if everyone would proofread their messages for spelling, grammar, and clarity before posting (and sometimes posts are just appallingly careless), mocking someone's spelling error seems kind of a cheap shot, especially when it's a newbie to MI like NoSpamAC who is very far from the worst offender.

Also, let's remember that the web is international and that to speak and write English flawlessly is extremely difficult if it's not your native language.

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Author: InTheShadows One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 77758 of 252193
Subject: Re: My first year of mechanical investing Date: 8/23/2000 9:52 PM
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All who agree with me would you please click on the recommand button, just once per vote, to voice your agreement & thanks.

All who think that pandering for recs is unseemly please click on the recommand button, just once per vote (or, if you really really really dislike pandering, click twice) , to voice your agreement & thanks.

Rgds, Foollabaisse.



I must be missing something. Why would anyone be concerned with recommendations? Do you win one of those dopey Fool hats when you reach a certain level?

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Author: alevine Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 77759 of 252193
Subject: Re: My first year of mechanical investing Date: 8/23/2000 9:56 PM
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InTheShadows wrote:

Do you win one of those dopey Fool hats when you reach a certain level?

Hey!!......what do you mean dopey....??

Alan

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Author: InTheShadows One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 77760 of 252193
Subject: Re: My first year of mechanical investing Date: 8/23/2000 10:10 PM
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InTheShadows wrote:

Do you win one of those dopey Fool hats when you reach a certain level?

Hey!!......what do you mean dopey....??

Alan



My Word thesaurus didn't like dopey, but when prompted with silly, it suggested stupid, ridiculous, impractical, mad, childish, inane, asinine, juvenile, harebrained.

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