Alphameister

Shooting for 100% Return in One Month

I see a young man loaded with smarts along with the hubris that often accompanies an oversized ego. I see a young man who has gravitated from exploiting opportunities within moderately inefficient sectors of the market to mining for gold within extremely inefficient markets. I see a young man likely to go far in this world financially. Whether he will be as successful in achieving happiness will depend a lot on his priorities in life and his efficiency in allocating his time to those priorities.

The losses cited by Fred actually reinforce my conclusions; they have been modest relative to losses most others have endured at comparable levels of risk. But they should induce a proper respect for those macro factors mentioned by Fred. If Glen can see such continuing undervaluation and opportunity in stocks that have doubled or tripled since he first discovered them, it is reasonable to conclude that he might have recommended those same stocks PRIOR to their March lows at two or three times their ultimate lows at a time when reported and forecasted earnings were higher than they are today.

Glen will also learn that equity managers of hundreds of millions of dollars do not have the luxury of researching bulletin-board stocks having total market capitalizations of a few million dollars, not if they are doing a good job of allocating their time resources.

As a devotee of inefficient, "risky" markets whose retirement portfolios have almost doubled in value from their March lows, I understand where Glen is coming from. But I also understand that not all investment managers have the same freedom to speculate that Glen and I enjoy.