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No. of Recommendations: 6
A very nice post, 5Horse.

I don't compete against Saul or anyone else, and that's not just a saying, I really don't. I can't compete against Saul. While I know many think some of Saul's methods are [insert whatever "negative" adjective here] –and I won't always disagree— I think somewhere within, the man is an absolute genius at investing, if one's investing goal is to maximize gain, irrespective of risk. But it takes a mindset (read "focus & guts" if you prefer) that many -- nay, most -- don't have, although they may not be aware of the fact.

Now your post brings up another major factor in using the Saul approach. Thank you!

There are endless ways and degrees of adoption that one can benefit by following Saul’s board. Unless one simply copies Saul's port weightings 100% each month and does nothing else *, in order for an investor to maximize gains using at least some level of an outline of Saul's methods, IMO an investor absolutely MUST dedicate considerable time to have a fair chance of winning. (Many folks cannot, for whatever reason, spend the hours required, to no fault of their own. Many are also not willing to do so, and most all of us have a limit to the time we can, or are willing to, invest.)


NOBODY SAID IT WAS EASY! In fact, many have found, or will find, some of the following tasks difficult or even impossible.

A Hypothetical
Let’s say you are guaranteed that performing any task below will increase your CAGR by at least 2%, and then the question arises: How many will you do?

Almost-Random-Order of Levels or Progress

Level I "Rookie" or "New Convert"
• Read Knowledgebase and take notes (something you don’t understand? ASK or learn, but not on that board!
• Read all ER reports as soon as available
• Listen to all ERs as soon as available
• Read & Study until you form your own opinions on companies' leadership strengths and weaknesses

Level II -- Increase Gains by up to 20%?
• Have or learn, a basic understanding of financial statements
• Never avoid being informed for more than a week or 2 (Can you say "Beach vacation?")
• Read constantly and take notes
• Develop rules to build portfolio(s) and follow them, make adjustments slowly and with forethought (no jerky moves)
• Read every post by a few particular board denizens
• Read other boards, blogs, etc., and bookmark the best
• Spend x hours per week on investing tasks
• Surround yourself with better investors than yourself and take notes.
• Remain abreast of all industry trends **
• Stay abreast of economic factors ***

Level III -- Dedicate "Whatever It Takes"
• Have or learn, an advanced understanding of financial statements and entry relationships
• Determine when "the herd" is likely to be wrong (yes, it happens)
• Stay the course, no matter what (works with all successful strategies, but REQUIRED here)
• Study industry terms, trends and current groupthink, regardless of your personal interest (e.g., "I'm not a techie by any stretch, and don't want to be" or "I suck at math.")

Level IV -- Complete Focus for Maximum Gain
• Skillfully balance all the above with one's own investing goals, strategies and rules
• Be willing to proffer ideas despite possible ridicule
• Be open to changing your opinions after due consideration
• Many things I have forgotten or missed (applies to all levels)


* I would NEVER fault anyone for doing exactly that, they’re probably rich. My personality simply will not allow this. Maybe my loss?

** Currently tech, at other times, various industries (This can be extremely difficult when the industry in question is of little interest to you personally, or you don't have the skills [e.g., "high-level math," or "fluid dynamics"] to go beyond basic learning of the industry or the technology.)

*** My recommendation only, NOT part of Saul's methods
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