I’d like to talk a bit about “my” description of what is happening in the market and LOTM related accounts.
What we do, is Hunt for Doubles
In broad terms, LOTM looks for stocks that profile as having the probability/possibility to double in price and do so within our desired time frame. Generally, we look for ideas that can double in six months to three-years. If I were perfect, and you know I am not, a double in three years would be 33% simple return if annualized. That’s pretty good.
In the hunt for doubles, we like a long-term capital gain when we sell so we look in the out of favor areas. We don’t mind being early because we want to own it twelve months or longer to get a favorable tax treatment.
We are in the Worm Hole!
A few time in life, we have entered what I call the worm hole. Once in the worm hole, it seem that the account values zoom rapidly upwards. I/we are in a worm hole. Our strategy matches up perfectly with what the market is dong. Our strategy is basically 40% in precious metal mining stocks and 40% in technology stocks. In technology, as you know, we are focused on Crypto and Blockchain stocks. Prior to entering into the worm hole, it might have taken years of set-up and positioning to be in the right place, at the right time. We are there now.
Be humble, Life has a Way of Changing
We’ll do our best to remain in the worm hole, but things change. Our status in life – thinking of health, personal and family – the market – world events – the Black Swan list is long and can get complicated. We were doing the same strategy in 2022 that we are doing now – and that was a terrible year for account values. We stuck to the plan. We down sized the number of positions held for working capital. We dollar-cost-averaged where it made sense. We sold some shares to tax managed out of higher cost shares, also for working capital. 2024 has turned out pretty ok so far. 2024 isn’t over yet. Two months to go. Seasonality suggests no matter who wins the Presidency, the market does well post Presidential elections.
Future looks bright, I am an eternal optimist
The future looks bright. There is always a deal somewhere. The challenge is to constantly be looking for “the deal.” Make small changes constantly. Avoid large scale change. Tinker and Putz along. Have fun. Don’t over stay your welcome. It’s just “Life.”
Good fortune to us all. Tom
