Our Investment Model

Our investment model is unique in that it combines both technical and fundamental analysis. Beyond this, our way of thinking about an investment helps you get the most out of it. This is how we model our investment decisions:

We are active. We are constantly monitoring the market and your positions. Every day we making a decision – do we need to hold onto a trending stock, do we need to sell it, or is there a better opportunity elsewhere. We are therefore both looking for opportunities and protecting your specific investments.

We cut positions quickly if they head the wrong way. We employ rules-based investing which takes the emotion out of our decisions. We don’t fall in love with a company. If your threshold reaches a certain level, we will call you and advise you to sell it.

We utilize trailing stops to help us stay in winning positions for as long as possible.

We are not day traders. We are not “buy and hold”. We view ourselves as active investors who concentrate on the medium term. That is, we don’t want to be in and out every day. We also don’t believe that buying a company today and closing your eyes for a few years will grow your wealth. The world changes rapidly and you need to adjust your portfolio accordingly. Today’s market darling is next year’s disaster. Our average holding is in the order of a few months to several months, depending if it’s a core stock or a trading opportunity.

Entry levels are crucial and it is where money is made. Timing is everything. This means you need to pay attention to what price action is telling you. This is where a strong understanding of technical analysis is necessary.

Most of the time, you only want to be buying a stock that is heading the right way. Share prices move based on the underlying company fundamentals, as well as investor sentiment and emotion. A common mistake is that investors buy a stock that is falling because of bad fundamentals, hoping it will recover. The professionals buy a strong fundamental stock that has only fallen because of investor emotions. Conversely, many investors chase a rising stock that is only rising because of greed and excitement, only to have the rug pulled out from under them when they realise that they are just buying a lot of hot air. We remove the emotion from the equation to make you a better investor. 

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