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. Continue reading