Last update: June 2026
Why I am not invested in all ideas
This is a question asked by many subscribers, and it's a valid one as the newsletters’ investment strategy is one, I use in my own portfolio.
There are several reasons.
I may already be fully invested
Firstly, I may already be fully invested.
I follow different investment strategies and depending on how much money I have invested in each, there may not be anything left to invest in newsletter ideas.
I also follow other investment ideas or themes
Secondly, I follow other investment ideas or themes.
For example, as you know I diversified my portfolio by buying tobacco stocks as a replacement for a bond portfolio. I did this to add income and stability to my portfolio through the high dividend income.
I also invest in ideas recommended by fund manager friends, mainly focusing on deeply undervalued companies. Although this has cost me in the past, it's something I find hard to avoid.
You can read about my worst deep value investment mistake, which led me to pay a lot more attention to momentum here: Worst investment ever – My story and how you can avoid it
I also invest in smaller companies
Additionally, I sometimes come across smaller companies that are not suitable to recommend in the newsletter due to their low trading volume – less than $100,000 per day.
If I find them very attractively priced, to make up for the low volume, I may buy them. It's worth noting that research has shown that US companies with low trading volume – below $100,000 per day - tend to have lower returns, even if they are cheap. This makes sense as if volume is too low it makes the potential pool of investors so small that there's hardly anyone to move the price, irrespective of how cheap the company may be.
I've also moved away from companies trading at less than $100,000 a day, but sometimes I cannot help myself.
I started exploring trend following
I have started exploring trend-following strategies to diversify my portfolio. This involves momentum-based strategies in the futures market, which offers a wide range of potential investments across stocks, bonds, commodities, currencies and more. I have an investment in a trend-following fund run by a trusted friend.
I don't know any better than you
It's important to add that I don't have superior knowledge compared to you as to what company will perform best. I have made mistakes by avoiding certain newsletter companies based on personal biases, only to find out later that they were the best performers.
This confirms that no one knows what will happen and the importance of diversifying our portfolio.
Remember we won't always beat the market. It's a mistake to assume that good performance over the long-term guarantees beating the market every year.
There will be times when we underperform, and the biggest risk is abandoning a sound investment strategy to chase the most recent best-performing strategy. This often leads to significant capital losses, as seen during the internet and tech stock bubble.
Slow and steady wins the race
In the end, I, and I hope you also, value slow but steady returns year after year. It’s not exciting, but it lets us compound our capital at high rates over the long term.
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