Using the US Investment Report Model Portfolios
One reader likens using the USIR portfolios to hopping aboard a moving freight train—a tribute both to their performance and the challenge of getting started.
The important thing is to begin—no matter how you do it. Here’s my advice:
In all three portfolios, my strategy is to be fully invested in 12 to 15 market share leaders spread across at least 6 to 10 different sectors. This blend of concentrated holdings with an effective degree of sector diversification is designed to maximize gains from my stock selection process and avoid dilution of returns due to excessive mutual fund-style diversity.
To reduce downside risk, stop-loss limits are set for every stock. Stops
occasionally cause large cash accumulations, which are reinvested as promptly
as market conditions permit. Stops are adjusted regularly as prices change.
The US Investment Report Model Portfolios
US Investment Report offers model portfolios for three long-term growth objectives.
All focus on market share leaders in growth sectors and emphasize rapid earnings growth for the coming 3 to 5 years—as well as reasonable price valuations, ample trading liquidity and moderate volatility.
None is a trading portfolio aimed at quick gains. Yet for all these similarities, each invests in very different kinds of stocks:
Using stop-loss limits, I allow a stock gain as much as it can. Then I lock in these gains quickly once the stock begins to reverse direction.
I typically set a stop-loss limit of between 5% to 10% below the stock’s current price. When the price of falls below its stop-loss limit, I sell the stock. But as the stock rises, I ratchet up this stop-loss limit accordingly.
My custom since 1987 is to announce portfolio purchases in advance for execution days later after issues had reached subscribers by mail. With the Internet and e-mail hotlines, I can now announce and execute transactions on the same day.
Contact me at email@example.com if there are any questions, problems or other concerns about receiving issues and hotlines by e-mail.
|© 2003 US Investment Report|