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Kua`aina Partners (KP) Frequently Asked Questions Version 4.0

Introduction and General Resources

Welcome to the Kua`aina Partners (KP) club message board. This is an investing club with a long and storied history here at TMF. Originally the club was started with the purpose of finding stocks that would beat the official Rule Breaker and Rule Maker portfolios, but even though we continue researching stocks our purpose has become one of general investment education. We pride ourselves in learning and applying many investment methods.

We welcome all experience levels of investors, from newbies to Warren Buffet himself.

Discussion of stock market companies involve many technical terms, here are some glossary web sites that define many of these terms:
GuruNet -
The Jargon Dictionary:
and also investment terms:
Harvey's Finance Glossary -
Investor Words -
Yahoo! Financial Glossary -

Previous versions of this FAQ can be found here:
FAQ Version 1.0
FAQ Version 2.0
FAQ Version 3.0


1. Introduction and General Resources
2. Table of Contents
3. What does Kua`aina mean?
4. What is the KP mission?
5. What is the history of the KP board?
6. I noticed that the Kua`aina Partners message board is an investment club folder. What is the goal of an investment club folder?
7. I'm new to investing. Where do I start?
8. Where can I find an archive of past research on companies here at KP?
9. What is NJTA?
10. How do I find the best posts on this board?
11. What topics are fair game on this board?
12. Do we make stock recommendations in KP?
13. What are the KARB and KARM portfolios?
14. Can you run down some of the silly acronyms likely to appear on the message board?
15. Why does xerohype put out these FAQs even though he should be studying or sleeping?

3. What does Kua`aina mean??

This answer comes from Reid (SpectacularBid) in post #658:
The literal translation of Kua`aina is "child of the land. "It can be used to describe someone from the country, not used to the city life. It also means something like unsophisticated or naive. For example, our president said that when he was growing up and playing with his cousins, the elders would look at them sometimes and after one of their antics would say, "you kids are Kua`aina." Somehow, I can picture the Wise on Wall Street looking at us individual investors and saying" you people are Kua`aina."

And finally, the reason for naming the club Kua`aina Partners, it means someone from humble beginnings. I think its an appropriate name that describes all of us here on-line as well, whether you want to think of us as "Kua`aina" investors or as being from humble beginnings.

4. What is the KP mission?

KP Mission:
A collection of friends in search of very high return stocks using a variety of methods. We not only concentrate on using Rule Breaker and Rule Maker methods to find outstanding investments, but we look beyond TMF to embrace Gorilla Game, Fisher, CANSLIM, TA, MI and any other methods than can lead to high returns. The important thing is to learn together and to keep an open mind.

Originally, KP started as a club for picking stocks to beat the official TMF RB and RM portfolios, but now we are a general investment club, mainly interested in learning about different investment methods.

5. What is the history of the KP board?

A brief history can be found here:
The KP club was started by Reid (SpectacularBid) and Adam (IFindKarma), we pride ourselves in having some of the best stock researchers and thinkers in the Fool community.

Recently we've been running some model portfolios to test different technical analysis techniques, but despite this we are firmly grounded in fundamental analysis methods.

6. I noticed that the Kua`aina Partners message board is an investment club folder. What is the goal of an investment club folder?

The answer comes from TMFBogey in post #214:
If there are a group of people whose postings you find particularly useful and who share common interests with you, ask them if they'd like to post with you on a club message board. Whether you start an honest-to-goodness club is irrelevant. Basically you're assembling a circle of friends who have common interests and whose posts you enjoy. In there, you can have conversations about all of the topics you enjoy.

7. I'm new to investing. Where do I start?

You are in luck, I just published a KP Guide for Newbies that includes links to educational materials on a variety of investment methodologies.

KP Guide for Newbies
Table of Contents:
1. Reading Lists
NJ's list, TaysPop's list
2. Investment Methodolgies/Resources
LTBH, TA, RB, RM, Fisher, CANSLIM, MI, Value, GG
3. Resources for researching stocks
Screening web sites, Understanding Financials, Competition, Evaluating companies
4. Formulas we use
RM Formulas, Financial Statement Terminology

8. Where can I find an archive of past research on companies here at KP?

Company Research Archive in KP
In that post we list links to most of the recent research done at KP, particularly for our KARB and KARM portfolio efforts.

9. What is NJTA?

NJTA stands for NukeJohn Technical Analysis method; he developed a trading method based on technical analysis methods for indicating good buy and sell points for stocks.

NJTA system described:

10. How do I find the best posts on this board?

One of the best ways to find the best information on a board here at the Fool is to sort the board by recommendations, you click on the recs link and you get this:
If people recommend the best posts you will read the best information on this board, so do your part and recommend the best of the best.

Recs also motivate people to write good posts and keeps them posting here. So please reward good posts with recs.

11. What topics are fair game on this board?

We encourage any and all intelligently-written posts on anything having to do with investing. We discourage personal attacks and making defensive remarks when criticized -- please keep such posts off the board.

We also discourage political and religious discussions because they usually degenerate into flame wars. Please take these elsewhere.

We pride ourselves on being one of the most civil places at TMF. Please help us keep it that way.

12. Do we make stock recommendations in KP?

The answer is NO, we only share research and opinions. Only YOU can be responsible for your own buy and sell decisions. We are here to learn together, not to make stock recommendations.

From version 2.0 of our FAQ:
We don't have all the answers; in life we have failed as much as we have succeeded. The important thing is, we're always trying to improve. Meanwhile, see Panit's post #589, "Do your own research":
There comes a point where all of the sudden our words in this friendly forum are misunderstood and are taken as absolute truth or expert advice. We are now responsible for what we are saying. But anyone of our ideas and the choices we make are not gold. Let me repeat -- no one is an expert here. Heck, I don't even listen to analysts, because I don't trust anyone. I have to be comfortable with my own decision.
The stock market is a risky vehicle of investment, and I hope people don't have unreal expectations based on past historical performance. People have to invest knowing this, and they have to invest under their own criteria, not ours.
I think this board is a great way to convey the message that normal people can do their own research and can be successful at replicating the methods of the Fools. This message is lost if people are simply copying our picks and are not doing their own due diligence when it comes to their stock choices. Please do your own research and make your own choices.

13. What are the KARB and KARM portfolios?

KARB stands for Kua`aina Partners Alterna-Rule Breaker Portfolio, while KARB stands for Kua`aina Partners Alterna-Rule Maker Portfolio. Those our long term and hold portfolios, the current versions were started on Jan. 1, 2001, and since they are populated by technology stocks have not been doing very well.

Here's more information on the KARB and KARM portfolios:
Final KARB and KARM selections:
NEW Kua`aina Alterna-Rule Breaker (KARB) criteria:
NEW Kua`aina Alterna-Rule Maker (KARM) Criteria:

We publish occasional reports on how the portfolios are doing, and should conitnue on at least a yearly basis.

14. Can you run down some of the silly acronyms likely to appear on the message board?

AFAIK = As Far As I Know
BTSOOM = Beats The Stuffing Out Of Me
BTW = By The Way
CAGR = Compound Average Growth Rate
DD = Due Diligence
DMA = Daily Moving Average
FA = Fundamental Analysis
FAQ = Frequently Asked Questions
FWIW = For What It's Worth
GG = Gorilla Game
IMHO = In My Humble Opinion
IMNSHO = In My Not So Humble Opinion
KABO = Kua`aina Alternative Boring
KARB = Kua`aina Alternative Rule Breaker
KARM = Kua`aina Alternative Rule Maker
KP = Kua`aina Partners
LTBH = Long Term Buy and Hold
MI = Mechanical Investing
MM = Market Maker, who like a Specialist smooths stock supply and demand
NJTA = NukeJohn's TA method
OT = Off Topic
RB = Rule Breaker
RM = Rule Maker
TA = Technical Analysis
TMF = The Motley Fool

15. Why does xerohype put out these FAQs even though he should be studying or sleeping?

xerohype is hopelessly addicted to recs, and also gets a kick out of people listing him on their Favorite Fools list, so if you want to reward him just click on the happy face next to his name and/or on the recommend it! button over this message. (so ends the blatant plug for ego stroking, please ignore this part of the FAQ, the evil side of xerohype made me write it, I am undergoing a 12 step program to overcome these addictions, really!)
Now ain't I shameless? ;^)


Please post suggestions, corrections, faint praises, backhanded compliments as a reply to this post or e-mail them to me. Eventually, if time permits, I may add more things to this FAQ, in the meantime I hope it is useful.


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