2008 Plan

[David Randolph]

For 2008 we're planning to make a few changes here in 3 Stocks:

1 - We'll close the 3 Stocks on Fire Portfolio. I believe one needs to own more than 3 stocks to be a successful long term investor. Moreover, as the 3 Stocks on Fire Portfolio experience shows, it is hard enough to know which stocks are attractive. Trying to separate stocks in degrees of attractiveness is a futile exercise. Investing in stocks is a subjective form of art, not an objective science ruled by math.

2 - Creation of the "Best of the Month" Portfolio. I expect to analyze about 20 new stocks each month and at the end of the month I'll pick one stock as the one I believe is the best long term investment. That stock will join the "Best of the Month Portfolio" at that month's closing price. In December, 31 st, 2008 I expect this new portfolio to have 12 holdings.

3 - As I wrote earlier, consistency will be the key word in my mind throughout the year. I'll be less obsessed with performance and will just try to make a consistent work. The 5-5-1 working model seems to be a realistic approach to the daily work that needs to be done here at 3 Stocks. 5 follow up analysis on the current holdings, 5 updates on stocks inside the Watch List and a new analysis each trading day is the working plan.

4 - We need to change the website's name (but the www.3stocksonfire.org domain name will always work) to better reflect what we're currently offering and to increase our credibility. This last issue is linked to our 5th task/objective:

5 - We want to have our performance audited by the Hulbert Financial Digest, which is the authority in measuring the newsletters returns. I've already contacted Mark Hulbert, but didn't get a feedback and I believe this was because our name and image lacks credibility. If Hulbert doesn't have any interest in adding the Main Portfolio to the 180 newsletters he tracks, we'll look for another credible auditing firm. This because we clearly want to separate ourselves from the liars and misleading services currently in the marketplace.

Finally, I'm confident that 2008 will be even better than 2007 here at 3 Stocks and appreciate your continuous support.

Thank you and Happy New Year

[tokyopua]

For 2008 we're planning to make a few changes here in 3 Stocks:

1 - We'll close the 3 Stocks on Fire Portfolio. I believe one needs to own more than 3 stocks to be a successful long term investor. Moreover, as the 3 Stocks on Fire Portfolio experience shows, it is hard enough to know which stocks are attractive. Trying to separate stocks in degrees of attractiveness is a futile exercise. Investing in stocks is a subjective form of art, not an objective science ruled by math.

2 - Creation of the "Best of the Month" Portfolio. I expect to analyze about 20 new stocks each month and at the end of the month I'll pick one stock as the one I believe is the best long term investment. That stock will join the "Best of the Month Portfolio" at that month's closing price. In December, 31 st, 2008 I expect this new portfolio to have 12 holdings.

3 - As I wrote earlier, consistency will be the key word in my mind throughout the year. I'll be less obsessed with performance and will just try to make a consistent work. The 5-5-1 working model seems to be a realistic approach to the daily work that needs to be done here at 3 Stocks. 5 follow up analysis on the current holdings, 5 updates on stocks inside the Watch List and a new analysis each trading day is the working plan.

4 - We need to change the website's name (but the www.3stocksonfire.org domain name will always work) to better reflect what we're currently offering and to increase our credibility. This last issue is linked to our 5th task/objective:

5 - We want to have our performance audited by the Hulbert Financial Digest, which is the authority in measuring the newsletters returns. I've already contacted Mark Hulbert, but didn't get a feedback and I believe this was because our name and image lacks credibility. If Hulbert doesn't have any interest in adding the Main Portfolio to the 180 newsletters he tracks, we'll look for another credible auditing firm. This because we clearly want to separate ourselves from the liars and misleading services currently in the marketplace.

Finally, I'm confident that 2008 will be even better than 2007 here at 3 Stocks and appreciate your continuous support.

Thank you and Happy New Year

Sounds like a great plan David, looking forward to seeing it evolve.  If you just sent email to Mark, he might have just been on vacation, or it could have got hit by his spam filters.  I would try like 5 more times before giving up    Heck, it takes little effort to forward the same message to him over and over till he gives you staight "no" or "yes".

[terainvestment]

Hi David,

it's a great plan. If I can, I would also suggest you use again the video analysis. This feature was the one that convinced me to subscribe to your site, because I saw a lot of credibility and great insights in those videos.

Regarding an auditing source, I know that exists a site that provides  an auditing (www.financialcontent.com).
Of course, having the imprinting of Mark Hulbert will be excellent, so do not give up in contacting his firm: they deserve you!

ciao!

Tera

[buddjas1]

Please do not close the "fire portfolio."  I think it is a great experiment to see if three carefully selected stocks can outperform a more diverse 15 stock portfolio.  You assume that it cannot, but it has thus far. 

[mbaugh]

Check out this link:

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2384484


This person also agrees with David's outlook.