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No. of Recommendations: 9
Hello KidChicago2,

Thanks for your note.

With respect to the returns, the 1,000% I quoted was the result of going long Tom's selections and short my selections back to 2003.

So, for example, in 2003 I lost about 10% shorting stock. At the time, this was the worst year ever for short sellers. A 10% loss was quite competitive though. Tom on the other hand made about 130% (off the top of my head). So, by being long and short on an equal weighted basis, the returns were about +120% (this is no different than what long / short market neutral funds do).

In 2008 yes I was up just under 100% and Tom was down 50-60% or so. So, we were still up 40-50%.

You get to 1,000% by COMPOUNDING. Tom and I achieved a bit more than 40% annually from 2003. That works out to slightly over 1,000%.

I have never lost 300% on a position. I suppose it could happen, but that is not how I manage my portfolio from day to day.

All I do is short stocks. I am not a civil engineer by day and forensic accountant by night. So, I just follow the same process over and over again. I will have losers. In fact, I takes LOTS of small losses. Successful investing is not about how many winners or losers you have but the money in your account at the end of the day.

I don't short illiquid stocks. I don't short "fad" companies that may run up.

Actually, you know what my biggest short was at the low in the market in 2009? It was General Mills, a company that will be around long after you and I are no longer walking the Earth.

Most people would not think General Mills would be a great short. Well, part of the point of the service will be to show you why.

Whether or not this service is a good fit for you or if you're unsure(which I understand) I really can't provide much guidance there. But, there are very few people that focus on this area of the market exclusively. I can assure you that you have no chance of getting this type of research in a retail format (retail means people like you, non-professional and not paying $60,000 a year for it).

Best,

John Del Vecchio
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