Other investors’ strategies

Chris Rees

  • Buy Rules
    • low debt, less than 50 percent
    • Focus on tangible book value
    • Look at realistic earning potential
    • Enter when it’s half of (book value and earning potential)
  • Sell Rules
    • Take profit if the stock approaches your estimated fair value
    • Sell if market, sector, company specific risk increases
    • Sell if stock becomes overweighted in the portfolio
    • Sell if find a better opportunity
    • Take profits if you can lower your overall portfolio risk
  • Personal website: http://www.tenstocks.com
  • Recent recommendation: CPLP (Target 4.5), PWE (Target 3.5)

Bob Krebs

  • selling puts and covered call
  • Sell when 20 days MA crosses below 50 day MA
  • Always look to buy back cheap options. Buy back option when you have a 75 to 80 percent gains to free up the capital
  • Avoid catching falling knife

Mike Koza

  • Look for short-term market “disconnects”
  • Successful investing requires a major time commitment to stock research
  • Don’t accept company figures when analyzing a stock
  • Avoid value traps
  • Sells when the ratio of intrinsic value to price falls below 1.25

Kai Petainen

  • Don’t just look to popular investing sites for investment ideas and strategies. Trolls SSRN.com and Google scholar for academic papers for new ideas
  • uses F-score, or Fraud score
  • Develop www.earningstorpedo.com
  • Developed 11 variables to screen for long
    • Low P/B <5
    • Positive return on assets
    • Positive return on equity
    • low debt to equity (generally less than 30 percent)
    • Relatively low price-earnings multiple
    • Price at or near its 52 week high
    • Five year revenue growth rate of at least 10 percent but not more than 40 percent (if revenue growth is too high, like 80 percent, generally avoid)
    • low F-score (roughly equivalent to (net income – cash flow)/assets
    • Low short interest
    • Institutional buying
    • Insider buying
  • Find stocks that have smart money, value, growth, and quality attributes
  • Avoid story stocks
  • Develop a sell discipline and stick to it
  • Don’t follow the flavor of the moment investing style
  • Don’t data mine excessively

Alan T.Hill

  • Go where the money and growth are
  • Do your homework! Read and follow up the leads
  • Diversify
  • Minimize mistakes

Jack Weyland

  • Look at short interest relative to average volume on the feel of negative sentiment in a company
  • Seek out promising companies that are undervalued because of temporary setbacks or hiccups
  • Seek entry points in stocks after sellers have dried up and signs of accumulation are beginning
  • Look for companies that serve an unmet medical or health care need
  • Avoid companies with short interest
  • If the market appears to be overbought, hedge your portfolio
  • Diversify but don’t overdo it
  • Try to invest without emotion or bias no matter how promising or likable a company or its treatments are
  • Avoid the sunk cost effect. Cut your losses and move on

Randy McDuff

  • Find stocks that are being ignored by Wall street
  • Seek out companies with strong business models, preferably monopolies, duopolies, or oligopolies
  • Focus on enterprise value/EBITA rather than price/earning ratios
  • Beware of false confidences like “Invest in What you Know”
  • Use government sites or academic sets like http://www.cia.gov or http://www.ssrn.com

Andrew Swann

  • Don’t invest in gold stocks – especially junior miners – unless you are prepared for extreme volatility and losses
  • Do you own due diligence before committing significant amounts of capital
  • Avoid leverage and set aside cash
  • Ride the coattails of smart people
  • Only invest in things you understand
  • Seek out special situations
  • Cut your losers when they fail to execute

Justin Uyehara

  • Above all, be flexible. Trades the trend
  • Listen to what the market is telling you
  • Sell Rule: Don’t get too greedy

John Navin

  • Uses Fibonacci analysis, Elliott Wave theory
  • Buy stocks at support level and sell stocks at resistance levels
  • Pay attention to moving averages
  • Use sentiment indicators as contrarian tools such as https://sentimentrader.com/
  • Avoid story stock
  • Don’t mess with double short ETFs or if there’s too much fine print, avoid it
  • Use stop losses when stocks sink 5 percent below your purchase price
  • Regarding profits: If your trade produces a 25 percent gain, sell one third. At 50 percent gain, another one-third
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