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Real-Money Stock Picks / Bryan Hinmon


Subject:  Re: What would you want? Date:  3/17/2011  2:35 PM
Author:  jackcrow Number:  35 of 77


Sorry it took so long to get back to this question.

Honestly there is very little you can do to encourage membership within the DIY experienced veteran crowd. The DIY crowd has their own way of doing things. They are willing to accept ideas from a broad array of sources. They may be intrigued, for a while, by a methodology that is unlike theirs or could possible supplement theirs. Personally, I rarely care where the idea came from or worry much about the source; I'll check out the idea for myself and see if it fits my needs and methods.

The target audiences for this type of service are those that want more direct assistance and those trying to become more DIY self sufficient. Combining teaching with broad based research may serve both groups well. The learners want to see how its done, how its used and why it matters. The folks looking for more assistance want a clear thesis supported by data surrounded by more research which reassures them that they are being given enough information to make a decision.

The final problem every service like this runs into is the problem of style. How you pick stocks to analyze and your methods of analysis are shaped by your overarching market views, broad methodologies and finally are fitted/tailored by your personality. The best way to run a high quality fund is to do it your way. The very nature of successful portfolio management eliminates a significant population of investors.

The worst thing you can do when explaining any of your picks is to fail to explain when and why you would sell. Most professionally crafted analysis produced by the industry at best gives vague targets and reasons for selling. Very few quality newsletters explain at the time of the buy suggestion when a sale should be considered. This is actually really poor advice and it drives continued subscriptions because subscribers have to subscribe long enough to find out when to sell.

For a quality investment choice to be made the whole picture, to the best or our ability, needs to be assessed. This means before we plunk down our hard earned cash on an asset we need to know what price to buy, what price/conditions for continued hold, what prices/conditions compel a sale.

Isn't it odd that when we research a product like a car we have the lifespan of the car in mind at purchase but this often is treated as an afterthought when it comes to stock picking? When we shop for a car we consider its cost, its value, its serviceability for the purpose of purchase and we consider its lifespan, its depreciation/resale value and its replacement cost. Is it fair to assume that the person who leases or buys a new vehicle every 3 years may have different criteria than the person who plans on driving that car until it is a pile of rust in the driveway?

Stock picking is easy, any moron can buy a stock. Making money buying, holding and selling assets takes more effort, diligence and intelligence.

Assume an intelligent audience and write for them.

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