Gilder Fund
The market is simple but we kill ourselves trying to make it complicated.
I don't do any research on the Gilder list other than read his report, preferring
to spend my time selecting the best five stocks. The Gilder mutual fund.
Five stocks is all anyone needs if they watch them. The idea of scores of stocks
makes following them too time consuming. Pick one stock each from five groups
of the "Telecosm" list or pare it to two or three. Many younger investors pick
just two stocks. Simple technical analysis is the method to use. SIMPLE is the key word.
You don't need any training other than what is presented here. You should be able to
look at a chart and know instantly if its a buy or a sell. Set up a portfolio on Yahoo
and enter all the Gilder Telecosm stocks. The detailed view will show charts as well as price
data. AMCC is the best example of what we are looking for and TGNT is the worst.
Scan all the charts looking for the pattern shown on the AMCC chart. The following
candidates are: ADI, AMCC, BRCM, CUBE, JDSU, NT, PCS, and QCOM.
Chart reading should be spatial focusing on binomial probability distribution or simply put,
look for the same pattern. We have eight stocks and that's too many. We can shorten
the list by going back to the "Telecosm" list and choosing the best in each area.
BRCM in cable tech, AMCC in microchip, JDSU in networking, QCOM in wireless, and
NT in broadband. Three stocks would be AMCC, JDSU, and QCOM.
Next is a comparison chart of all the stocks on the list to see how they move as
a group and in relation to the market because stocks that quickly recover after a
market correction are the most powerful. This link will show the relationship of the
five stock fund to each other and to the market. Notice how they all pulled back with the
correction and all recovered or have started their recovery.
siliconinvestor.com
The three stock fund is this link:
siliconinvestor.com
Several requests were made for a one stock fund. JDSU is my pick of the year
siliconinvestor.com
When to sell? Check the comparative chart looking for any individual stock that isn't
staying with the group, give it some time but don't hold losers. Keep some buying power ready
to add to positions on corrections. This is not a day trading fund, it's a wealth building strategy.
You can expect volatility with this fund but that comes with tech stocks. Don't over trade the fund.
Your fund doesn't have to include any of the stocks presented here, pick the ones you like.
If you held QCOM the day it was up 156 points you would know you were on the right track.
Constant monitoring is all right but not necessary, a monthly or weekly look is really all that is
necessary to follow your personal Gilder fund.
Step 2: In five years write a book titled "How I Made A Million Dollars In The Stock Market"
cdaisey@simple-market.com |
