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Back [ more ]. It has gone up.. Such securities typically perform better than the market averages. Not everybody is cut out for investing. Sorry I started this thread. How should they approach it?

Investment Analysis Clubs. Message Font: Serif Sans-Serif. Prev Next. Author: SaulR Number: of Report Post Recommend it! This is a newly revised «next edition» of the Knowledgebase.

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Investment Analysis Clubs. Message Font: Serif Sans-Serif. Prev Next. Author: SaulR Number: of Report Post Recommend it! This is a newly revised «next edition» of the Knowledgebase. In it, Neil and I tried to improve its readability by getting rid of as much repetition as possible, getting rid of dated examples and making them more generic, and including a little new material which wasn’t there.

We both feel that we improved it and we hope that you find it interesting and useful. To produce it Neil had worked hard collecting «words of wisdom» from hundreds of posts and arranging them by topics. Since new ones were added every month, Neil and I became worried that over time it was becoming too long, too disjointed, too repetitive and too sauls investing boards. We decided to rewrite it in a more flowing fashion. I rewrote it with Neil’s help and editing, trying to weave the ideas together to change it from a collection of separate excerpts into a more seamless narrative.

We published the new version as the revised Knowledgebase, but we have not had a new edition now in several months. This edition has minor improvements, and if you have read an earlier edition, I would only read it all the way through again if you want to refresh your knowledge not a bad idea, by the waybut not because you think that it’s all new.

Of special interest however, is Basic Rules of the Board, which is the second section, right after this introduction. Please note also that the original posts from which the Knowledgebase was assembled were written over a period of years.

Thus some examples that I used at the time are several years old, and are dated, but I’ve left them in because they illustrate points well even though my feelings about the stock, or the current stock price, might now be changed, and it would be silly to keep running around trying to update each illustration every couple of months or so.

At the end of the Knowledgebase you’ll find an Index of useful posts by post number, should you desire to go back and read the posts from which this has been compiled in their entirety. What is My Selling Policy? Basic Rules of the Board Yes, there are some off-topic subjects that don’t belong on the board. What comes to mind off the top of my hat are subjects like politicslike extended discussions of technical analysis, or option trading subjects, or like how to cultivate apple orchards after the initial two or three postsor private humorous conversations also after the initial two or three posts.

That’s just a few, but you get the idea. There’s nothing wrong with these topics and there are other places where they’d be welcome, but they don’t fit with this board. Expressions of anger because people disagree with you about a stock are definitely out of place. There are also companies that don’t belong on the board.

Like a company that has seen decreasing revenue and decreasing earnings over a number of years, and now is being considered as a take-over, or a sell-off-the-parts candidate.

That’s simply not what this board is. There are other boards for this kind of situation. Another example would be an early stage biotech, with no actual revenue, but great ideas. Or a new IPO of a company that has revenue, but still has large losses and hopes of breaking even two years from. You can weed those out. However, besides such obvious misfits for the board, feel free to introduce stocks you are interested in. But not just with «I heard about an interesting stock called XYZ».

Tell us something about it! What does it do? Is it growing? What are its earnings? Why you like it? That kind of thing.

As far as restricting to «Saul-type stocks»I don’t know what a «Saul-type stock» is. I look at a stock and examine it with the method outlined in the Knowledgebase, which is available to. So let’s not talk about Saul-type stocks, which don’t have any fixed meaning that I’m aware of, and let’s talk about evaluating stocks using the «Knowledgebase method,» or even the «Saul method» if you like a shorter title.

Some people will prefer to use other methods. That’s what makes horse racing, to mix a metaphor. This board isn’t about any particular stocks.

It’s about learning how to evaluate stocks using a valuable, effective and common sense method. With the method, you’ll find your own stocks! I’ve seen calls to move discussions of companies to other boards because I’ve sold out of. I don’t think that’s a good reason to stop discussing a stock. We are here to discuss interesting stocks, and whether I am personally invested in them is irrelevant. My Historical Results I started keeping track of my results yearly inbecause my wife and I had a baby and I wanted to retire in about 7 years I did.

My wife panicked «You can’t retire! We have a new baby! In JanI increased my record keeping and started keeping track of my results weekly, and not just annually, as I had done. You should know that my wife and I and my family have been living off what I make in the stock market since my retirement in That’s 20 years! I have no pension or other source of income except Social Security.

This produced a rather amazing overall multiplication of my total portfolio, In fact, if you sit down with your calculator and multiply 1 by 1. It’s the power of compounding. You’ll note that this was not a large multi-bagger on one stock, but on my entire portfolio, the whole works!

I lived through the Internet bubble of I said to my wife, «They may keep going up, but this is insane. I’ll let someone else have the rest of the ride. Sometimes selling can be the most important thing you can.

I didn’t get out of the market. Sure I could have held through the decline, and 10 years later Amazon came back, even if Yahoo and AOL never did, but why??? I got killed in like everyone. Probably worse than someone who was in defensive stocks. It was my first negative year after 19 positive years in a row. Finally, I was down so much that even I got scared and started to think of selling out and going into cash. All the talking heads were saying, «Sell! Get out! This must be the. Inin the big meltdown, I dropped In I was up The way percentages work though, after dropping Below you’ll find a list of the gains of my entire portfolio starting in Numbers are percent gain.

In other words Two enormous years in Internet Bubble andwhen my portfolio was still fairly small, sure helped. As of the end ofI had a bagger on my entire portfolio.

In fact some even implied that I was lying, that even Warren Buffet couldn’t do it. But he was investing billions of dollars, like piloting a battleship instead of a speedboat.

He had to buy whole companies, for God’s sake! Well, was a very flat market, not the dot-com craze. Others on this board, following the principles that we have discussed, are up even. And it hasn’t been magic. I’ve been transparent and given all my positions and their relative size each month, and basically told exactly what I was doing. You’ve followed along with me. It’s real. It takes some work, but you can do it. I know there will be pullbacks and I will end other years with more or less gains than this year, but it can be done!

Stock picking does work obviously. Especially if you are lucky, as I must have. Some people say you can’t beat the market in the long run. They are wrong. Please note: It’s a lot harder to make great returns as the amount you are managing gets larger.

You can’t just get in and out of a stock with one or two trades as the dollar amounts become too big.

What to Look for in a Board Member — Ask A VC

If the screen results sauls investing boards too numerous, the stocks that remain after these above filters may be further reduced by limiting the candidates to those with 5 CAPS stars, positive return on equity, debt to equity 0. I baords no pension or other source of income except Social Security. Disclosure statement: Larry and Val have holdings in some of the suggested assets but do not «make a market» in any ibvesting them and do not derive any direct benefit from recommending them, except perhaps for a bit of smug self-satisfaction. Hey, Fool! Start sauls investing boards seriously. What are the top mistakes you see investors make? I really value the Motley Fool. Back [ more ].