We recommend that you read the latest three newsletters as the ideas are still fresh – this means the research and share prices are up to date.

 

Invest only if you feel comfortable

Once you have read the newsletters, I suggest that you buy only the ideas you feel comfortable investing in.

Then slowly increase your investments with future newsletters – again only if you feel comfortable.

 

What if the price has gone up or down?

We do not set a maximum buy price when we recommend the companies in the newsletter. This is because when we recommend them they all have good momentum and are undervalued (fits the newsletter's investment strategy).

If the share price declines the undervaluation increases but the momentum gets weaker and the other way around. This is the reason why we do not set a maximum buy price.

If the stock price has however moved more than 15% up or down since we recommended the company ignore it and move on to the next idea.
After looking at the most recent three newsletters, what we would recommend is that you invest in ideas close to the time the newsletter is released - the first Tuesday of every month.

That way you can be sure the company fits with the investment model, and you have the best chance of a large return.

 

Keep your investment positions small

Remember not to make the size of any of your investments too large, stay with the Suggested portfolio weighting (percentage of your whole portfolio) given for each investment recommended in the newsletter – this is usually 2% of the total amount you want to invest.

 

When do I sell?

We have tested a lot of selling strategies and I still recommend the one year holding period the newsletter follows.

We will tell you to sell a company after a year if it is not still in the investment model, if it is the investment model, it is held for a further year.

 

A Helpful Tip from a Fellow Subscriber

One of our long-time subscribers recently shared something you might find useful.

He followed the 2% position size rule closely. But found that over time, it left too much of his capital sitting in cash.

This happened because he: 

  • Started slow to build confidence
  • Skipped a few ideas he could not buy or did not feel comfortable with
  • Watched his account grow faster than he was adding new positions

 

He gradually increased his position size to 2.8%, which helped him invest more of his capital without compromising his comfort with the risk he was taking.

If you are just starting out, sticking to the 2% rule is a great way to build discipline. But once you feel confident and want to reach full allocation sooner, you may consider adjusting to 2.5% or even 3% per idea.

The most important thing is that the system you choose fits your goals and your reality, including the risk you are willing to take.

Small adjustments like this can make a big difference over time while still keeping your risk under control. 

 

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