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Posted by Kirk Lindstrom Nov 18, 2006 |
On another message board, I was criticised for comparing my newsletter to the QQQQ ETF that I once said was "designed to be shorted."
- Oh yes, I remember that very well. In fact, I have written several posts on several boards criticizing kirk for doing that.
Here is my reply:
What is wrong with saying my newsletter portfolio beats the QQQQ that Bob Brinker recommended for up to 50% of cash reserves which would be 33% of investment assets if someone was following his P1 for all of their investment assets?
At the time Brinker recommended QQQQ, one of the clowns who continues to harass me here, made fun of Will_L and I not wanting to buy the QQQQ.
I said at that time that I recommend my newsletter explore portfolio for the "high risk" money people were putting into the QQQQ at Brinker's direction. It is perfectly valid to show how well my advice has worked out over that very specific recommendation made on my site.
Since that day, my portfolio is up 72% while Brinker's QQQQ is down 45%. Why shouldn't I point that out, especially to folks who still think Brinker has a clue about picking stocks or market sectors? I admit his timing is pretty good if you avoid all his other advice.
In October 2000, when Brinker recommended QQQQ, I added MSFT to my portfolio on 10/17/00 at about $25. It paid a $3 dividend and is now $29. I also recommended LRCX in the teens for the largest chunk and LRCX today is about $54. I put a small amount into a company that was later bought by NVLS, SFAM, that ended up losing a tiny bit of money that is tiny in comparision the the gains made in LRCX and MSFT.... stocks that were quite cheap in October 2000.
LRCX and MSFT are in the QQQQ and were good value. People who wanted to "hedge market risk" could have bought MSFT and LRCX and shorted QQQQ, which is what many do and I believe is one of the big reasons the ETF was created. It is also easy to sell the over valued basket of stocks to suckers who are not aware that it sells low and buys high.
BTW, the core stocks in my newsletter are hardly penny stocks unless you consider Citibank($50), GGR ($9), Lam Research ($54), AMAT ($18), UTEK ($14) and FedEx($117) as penny stocks. I've made a lot of money on these and most of the others in the newsletter.
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DISCLAIMER: Answers & my words are general in nature, are not meant as specific investment advice, and do not necessarily represent the opinion of anyone but Kirk. Individuals should consult with their own advisors for specific investment advice.