Basic Outline
Over the next 6-12 months I hope to build a 20-25 stock model portfolio.
The trend toward more indexing and ETF's is destroying capitalism. We need to show investors how to select individual stocks, and use them to build portfolios.
There are some basic principles that will underlie this effort:
The goal is to do independent research, but also show how the opinions of others can be used to build the portfolio.
The approach will be long-term oriented, but the constant changes in "news flow" will effect the portfolio.
The focus will be "buying low and selling high", so be prepared to look at stocks that have under-performed the market.
The focus will be on "value investing", but we will also consider some fallen "growth stocks" along the way.
The focus will on "total return" investing, and dividend yield will not be a major concern.
The general approach will be anti-Wall Street, but we still need to consider their "expectations" when looking at stocks.
We will at stocks with limited downside risk, and in general use Graham's "Margin of Safety" concept.
There will an emphasis on comparing stocks to others in their industry.
We will work hard to find good sources of new ideas.
We will have to manage our time carefully, and deal with the overflow of information available