The Logical Investor takes a unique approach because it teaches timeless stock market and economic lessons in a way that the average person can understand it...none of that encrypted Wall Street talk that sounds like another language!
Additionally, the foundation of this newsletter is based off of biblical stewardship. After all, the Bible teaches us in Proverbs 6:6 to be a saver. And Matthew chapter 25 teaches "the parable of the talents" which tells us to steward our money through investing as well. Yet many Christians are not aware of this or either do not practice biblical stewardship.
And you'll find that we steward our money through investing in a very prudent way, through sound, measurable metrics. We'll be investing in huge, solid companies, not weak, speculative companies that are "shots in the dark". No, that would be more akin to gambling and we work too hard for our money to invest it foolishly.
The Logical Investor takes a value approach to investing. That means we want to buy a solid company when it's cheap and hated and trading at a value relative to its earnings or assets. It's a very contrarian approach where we "buy low and sell high" instead of the momentum chasing model that's prevalent today where you "buy high, in hopes there's another sucker out there willing to buy higher than you".
So you'll find that we're not buying the stocks that are being pumped up in the news media and are overvalued. Instead, we'll be looking for great assets that are "on sale". We can measure this by looking at fundamental metrics which I'll teach you about. In addition to this, I'll show you charting techniques that help us to buy at more favorable prices too. (No, we won't "call bottoms" and "sell tops". No one can do that and if they tell you they can...turn and run! Even Warren Buffett can't do that). But we can use charting techniques to give us an edge over time.
Additionally, I'll show you how to use negative investor sentiment in your favor. You see, in a perfect world, stocks would always be fairly valued. And in colleges today, they teach your kids that stocks are always trading efficiently and priced correctly at all times. However, this is simply not true and it's why Warren Buffett, Jim Rogers and Sir John Templeton, etc. beat the market averages over time...because they assessed and found value.
This takes a willingness to buy when the sentiment is super negative and to sell when everyone is in love with a stock. You see, the reason why stocks aren't always trading at their fair value is because human emotion is involved.
Have you ever gotten into a fight with someone and said things you really didn't mean? You lost your good judgment because you became emotional. Well, investors do the same thing. They buy at the wrong times because of the emotion of greed and the thrill that they sense (which also appears to be backed up and validated by the positive headlines at the time). And they sell at the worst of times when they're gripped by fear and the headlines appear to affirm their worst nightmare.
We don't invest emotionally. We invest methodically with metrics that are measurable and that's why I've named this newsletter, The Logical Investor because the way most people invest, you'd call them "the emotional investor".
You're going to find that through my three-pronged approach to investing (fundamental analysis, technical analysis and sentiment analysis), we'll know when investors are getting it wrong and mispricing a stock.
In Hebrews 6:12, the Bible says that through "faith and patience" we inherit what God has for us. Well, it's the same in investing. I'll show you how we're able to have faith in a company when the stock price is volatile and temporarily falling. And through patience, we'll reap the profits overall from these companies as we give these companies two to three years to increase their earnings, profits and market share so that it justifies a higher stock price.
This newsletter is the opposite of CNBC's "Fast Money" and Jim Cramer's "Mad Money". There's nothing "fast" or "mad" about what we do. By the time it's all said and done, you're going to feel like you've had a real-life college education in investing.
I'll be giving you the stocks to buy and sell and at what price. So there will be nothing left to the imagination. But at the same time while you're looking over my shoulder through the monthly newsletters and weekly videos, you'll be learning how to fish while you're watching me fish, as well.
Over time, you'll be very comfortable with my system and it will be something that you'll be able to hand down to your lineage and help change their financial future too!
So, welcome to the Logical Investor! The monthly newsletter and weekly video updates (where I go through the charts of each of our stock positions) will all appear in the Premium tab of this site - CLICK HERE to see previews and to join.
Thanks so much for joining The Logical Investor. Help me spread the word because if there's a huge problem in the U.S. and world today, it's a lack of prudent stewardship when it comes to money. Together, we can help change that, one person and one family at a time.
P.S. - If you haven't watched the Logical Investor Site Tour video yet, I'd encourage you to start there.
P.S.S. - If you have any problems getting signed up, here's a short video that visually shows you the steps to take in order to sign up for the Logical Investor newsletter: