written by reader Investment Newsletter with Models Portfolios

By garlandman, September 17, 2012

This may be more of a rant than anything else, as there probably is no good advice anyone can give me. I like newsletters with model portfolios because it makes the decision making process easy. The problem I’ve had with them is that I find myself losing big when I buy and losing big when I sell. Often the stocks are thinly traded. Couple that with the fact that all the other newsletter subscribers are out there doing the same thing at the same time and you have a problem.

My experience, in this regard, was with Intelligent Value newsletter. Often a stock would go up 1% by the time my buy order got processed, and would go down 1% by the time my sell order would get processed. The newsletter would be sending us recommended buys and sells once a week, so this factor added up to a lot of money, percentage wise, by the end of the year.

Although I’m currently using NoLoad Investment newsletter, I have been looking at Validea, where I suspect I’d run into the same problem as the one described above, although I’d probably choose to upgrade only monthly.

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.



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September 18, 2012 7:22 am

With Validea, you can choose from a dozen or so guru model portfolios, which helps to minimize “the herd” phenomenon. You can also choose the frequency with which you trade (monthly, quarterly, annually). It’s the most consistently successful investing service I’ve found and I’ve spent a lot of money on services over the past 12 years looking for one that actually makes me money. The fixed buy/sell time intervals may leave money on the table at times but almost ever other service I’ve tried in the past didn’t recommend a stock be sold until it had already tanked. The only one I used that recommended selling while a stock was hot was Maventown.com, which I loved for about 6 months until they completely mis-timed a recovery in coal and natural gas that cost me too much. I hope this helps. I love the number of ideas/options Validea.com gives me and the the fact their recommendations are based on guru (Buffett, Lynch, Greenblatt, Piotrosky, etc.) methodologies.

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