Message Font: Serif | Sans-Serif
No. of Recommendations: 37
After reading about the foolish four, reading the strategy articles and following the message boards for several weeks, I have decided that the F4 strategy is probably not for me.

This is not to say that F4 is not a good strategy. I'm just saying that it's not right for me.

Here's why. (feel free to disagree as much as you like).

I thought I understood the F4. Seemed very simple from the articles. Market crushing performance, well, most of the time, and over the long haul. I became interested in these astounding returns and started to learn more.

As the saying goes, the more I learned, the less I really knew. While the overall concept of buying large companies that are out of favor in a simple mechanical strategy made a lot of sense, I became boggled while reading the message posts of people who are more statistically inclined than I am. While I can't say that I agree with any of the data-mining arguments, that's mostly because I'm not following the conversations. Even if I read the FAQ daily, it's unlikely that I'll be able to defend my F4 investments against those who believe the strategy is flawed.

I've also read a lot of depressing posts from investors who are suffering though bad F4 years. I've realized that I really don't want to join them, and I have come to the conclusion that diving into the F4 would be like rolling the dice - I wouldn't be able to explain my success or failure.

Personally, I've decided that I will be much more comfortable with a Rule Maker strategy. (At least that's the decision of the moment). Reason: I'd rather spend time learning about the company than do 15 minutes a year with my fingers crossed.

I hope this post isn't too negative for you F4 investors. I realize that I may be passing up a fantastic strategy. But that's the choice. I may return to the F4 or BSP RP 4 someday, but now's not the time for me.

One more remark, I have learned lots in the process, and am grateful to the Fool for this education.

Hope this is helpful to somebody out there.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.