The Justa & Lars Honors Bob Brinker Investment Club Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Lars who wrote (1798)	10/25/1998 12:19:00 PM
From: Lars	Read Replies (1) of 15132

* ULTRABULL * Four quick points before you read this post: 1. Bob has NEVER advocated anything like I will post. 2. It carries risk double the S&P 500 or greater. 3. Do NOT construe this post as me advocating anyone follow this strategy. 4. This is a unique mutual fund approach that I would NOT weight heavily in anyone's portfolio. Bob's 4% rule we be a good rule to follow here IMHO. Since I don't want anyone crying in their beer should they blindly follow my approach I posted the above four points. Now that I have the "disclaimers" out of the way let's get to my strategy. Part of my portfolio strategy has been to take money off the table gradually since early 1998. I have done this methodically. Not in a rash manner. Thus I benefited on the upside while preparing for a possible significant buying opportunity since I took money off the table and allocated a large portion of my new investment capital to my money market account. It has also helped that over the years of following Bob I have put as much money as I could into tax deferred vehicles (401k, IRAs, Roth IRAs now). Thus I have minimal tax concerns from selling or reallocating the majority of my total portfolio. My personal reasons for this had to do with the fact that the S&P 500 p/e had reached record levels. I recall a point being made that within "x" number of months after a certain p/e level is reached that a market correction usually occurs historically. I am not a TA person but common sense prevailed for me here along with this point. Thus I have had cash to take advantage of the recent downturn. Part of my personal investment plan has been to implement certain actions with specific dollar amounts based on the % decline in the market. The plan wouldn't allow implementation of the approach until at least a 15% market decline on the S&P 500. I am not rigid in these % decline levels either. For example, I will not ingore my next buying amount level if the market has declined 19.x% vs. my 20% goal. Common sense should prevail here. I decided to utilize a mutual fund called Ultrabull with a minor portion of my portfolio. The goal of the fund is to have a beta of 2.0 times the S&P 500. This is the fund I have used to make specific predetermined purchase amounts to take advantage of a decline. I must note that I was prepared for the market if it went down over 20% too. My strategy presently includes a plan to buy up to a 40% decline. I am confident in doing this because I will not need the money for at least 2 decades and I am not betting the ranch. These are two very important points. Bob Brinker's advice has been priceless. It is one thing to implement a strategy like this on your own. It is quite another to have one of the greatest investment minds putting forth a point that this is only an intermediate term correction. It helped me anyway. I have to admit that it took a great deal of courage to hit the buy button. It is interesting to reflect on having a plan on paper and then having the market actually going down, people in a panic, etc. and you have to implement the plan. It takes some serious guts to pull the trigger and buy. It flies in the face of human nature which is to sell and panic. This is why people need to realize the courage and tenacity that Bob Brinker has displayed. The pressure had to be incredible. Like Justa has said Bob has many small investors listening to him. Millions of people. People he tries to help for free. Bob Brinker is a great human being for providing this type of service to John and Jane Q. Public. All I can say is I want to thank Bob for his advice. Let me tell you imho anyone who doesn't subscribe to Marketimer is crazy. Period. Sure I was implementing my plan but hearing Bob and placing faith in his track record helped calm the nerves as I have been buying during this correction. Bob has helped make this recent downturn extremely profitable for me. I have discussed this next point with Justa. I am no longer a watermelon smiling Brinkerhead. I am a watermelon patch smiling 2 Beta Brinkerhead.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next