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Author: globalist2013 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 265926  
Subject: Re: Great stocks with no insider ownership Date: 3/3/2013 10:53 AM
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These stocks passed all my tests but insider ownership.

SD,

The problem with any screening method is how to decide on the “borderline” cases, and only two responses are possible:

(1) “Go/ No-Go” (in which no exceptions to one’s rules are ever made).
(2) “Discretionary interventions” (aka, intelligent exceptions to general policy are made).

Choose one or the other and then write it into your investment plan. But don't try to straddle the two. Choose one, or the other, and stick with it. In the investing game, consistency matters, and it is what separates winners from losers over the long haul. No method always works. But losses are assured if an investor jumps from method to another when problems arise. The problems have to be endured in order to get to the situations when the method comes back into its own.

- What's the downside of a 'Go/No-Go' approach? When investing opportunity are few, you're going to be on the sidelines.

- What's the downside of a more "flexible" approach? When investing opportunities are marginal (in therms of their risk/reward ratios), you are likely to be taking on more risk than you bargain for and, hence, are increasing your overall failure-rate.

One, or the other. But understand the consequences of each choice.

Charlie
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