Archive for October, 2017

Meet My Investment Advisory Committee

Tuesday, October 10th, 2017

October 7, 2017

First a disclosure: I haven’t had a paycheck to deposit in over 10 years,  and my only sources of income are Social Security and capital gains income derived from equity investing.

I don’t have a license to give advice, but I can share with you the sources of my advice.

Some of the members of my Investment Advisory Committee are alive and some are not.  We meet about three times each week,… under the bed covers,…in my mind, between 4 am and 6 am.  Meetings tend to last longer when it is snowing.

Getting serious,

If I want to outperform the recognized market benchmark for performance…the return on the S&P 500 Index, I need to have an edge.  And, truly, investing in the market is a zero-sum game where investors without an edge are likely to lose money.

Permit me to introduce my investment advisors…

#1 Bill Parcells, Hall of Fame Coach of the NY Football Giants:  Shop for your own ingredients and be prepared to eat what you cook.

#2 Confucius:  One chart is worth a thousand words..instant separation of potentially focus worthy investments.

#3 Warren Buffett:  Its about comparing the price you pay for free cash flow per share with the returns from other investments..

#4 Martin Zweig ( ex-Assistant Finance Professor at Iona College and, ultimately, owner of the most expensive apartment in New York City…top two floors of the Pierre Hotel…Predicted the 500 plus point market drop on Louis Rukysers “Wall Street Week ” the Friday before it happened in October 1986.) When interest rates are low, equities tend to appreciate.    By interest rates he means fixed income yields which compete with equity yields for investor dollars.

# 5  Joseph Granville: Technician and Chartist….Volume = Conviction,… in either price direction. The” On Balance Volume ” trendline sets the stage for breakouts.

#6 Jesse Livermore: Nobody ever went to the poorhouse by taking a small profit.

#7 Morningstar: The backstory…is it there? , or is it not there?  a sustainable competitive advantage, a moat to protect operating margins.

#8  Bill Parcells ..again, You are what your record says you are.  Learn from it!

#9 My grandfather, Philip Joseph Tenety:  Quite a few old sayings which I believe contain market logic. For instance, ” A bird ( profit )in hand is worth two in the bush,”…”

Richard Maurice Gore