Skip to main content
No. of Recommendations: 1
Hello, MrMarket!

In the mailing list message you posted, you wrote:
Don't ever ever ever EVER EVER EVER buy or sell a stock based on what someone else says. Do your own homework. It's YOUR money.

Right. I've tested your method; it looks good. The test is limited, but I can't do more. I have tried to duplicate your method with the sources available to me, and for now I am satisfied with the results. (Your last pick, SAH, also scored high on my list, so I must be doing something right.) Now I am ready to do my own work. But while I was doing all this work, I got a question.

One of the things that convinced me that I was on the right track, was that two of my current 'top 3' had already been picked (and sold) by you. So: What do you do when your picks return to the list? Do you eliminate recent picks from your long list (of 20)? I see that you had on average one pick per week, so 'buy this stock', and things don't change that much in a week. (Or do they?)

And a related question: when picks stubbornly show up in the top 20 (top 10, top 3, top 1), isn't that an indication that they have more juice in them than the 15% we expect from them in the first place? On your web site, you defend selling early with: Well there are ever changing phenomena going on in the market that could make your selection criteria quite different a month after the signals told you to buy this stock. The theory here is that you are selling a potentially "tired" stock and trading it for a "fresh" one. But these stocks continue to show strength. What do you think?

Regards,

Karel
Print the post  

Announcements

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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.