Before I get started, let me say unequivocally, this won’t work well if started today. It will work flawlessly after stocks take catastrophic losses in the coming days., Don’t start this in the immediate timeframe!
In 1973, I got my dream job as a retail broker, working for Merrill Lynch. I was the youngest person ever hired as such in the local office. I was hired mostly because of the enormous knowledge I had already accumulated at the young age of 23. I did not do well as a retail broker and only lasted 6 years. I was a miserable salesman, which I still am today. However, it all proved to be an invaluable experience.
1973 and 1974 were periods of a tremendous bear market, The world was coming to an end in the mind of many. It was a tough time, It seemed any stock anyone bought any stock, enormous losses followed,
I had made friends with someone else’s client, whose name was Frank. He was an old guy who set in the board room day after day watching the market. His own broker, thought of him as a pest.
One day as the market was crashing to its final low, Frank, handed his broker a list of stocks and said, “buy these.” He kept buying for about 30 days. I asked Frank what type of upside target he was looking for. Frank answered saying, none, I only buy, I never sell, I lost touch with Frank, but I can’t imagine how much money those stocks were eventually worth.
Anyone who accumulates stocks throughout their lifetime is going to make huge profits. On the chart above, it is easy to see that it is best to buy at the bottom of a bear market. About every 40 or so years, the market resets. It is best not to begin one of these programs at the top of a stock market bubble.
That being said, regularly buy stocks over time, Even random selections, if made consistently will pay off over time. The approach I teach is to consistently add positions off of the new high list. Stocks that rise parabolically are on that list Buying off the new high list optimizes your chance of owning true winners and goes a long ways towards, eliminating those which fall short.
Do not over analyze your selections. Basic fundamentals are fine. You can’t get enough information to make much difference. Instead, ask some simple questions like. Doe this company have genuine utility to society? Could one of their products end up being a part of society? Make up your own questions.
I am 75 and have been trading since I was 19. I have never known a case where this system has been tried without generating Stellar results.
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