“We don’t seek out sexy, high-profile stocks such as Tesla or Twitter. Those companies may have vast potential, but their fates are very uncertain and their stocks are volatile,” Doug Gerlach, editor-in-chief of the Investor Advisory Service Newsletter, recently told Bottom Line Personal Newsletter. Doug is president of ICLUBcentral, a division of BetterInvesting.
Here’s what Bottom Line says about Doug and IAS:
“What if you could beat the market no matter what direction it was headed? That’s was investment-newsletter editor Douglas Gerlach has done. He and his team of analysts use a strategy that originally was devised for amateur investment clubs in the 1950s. It is simple enough for the average person to use, yet comprehensive enough to compete with professionals.
“Since 1996, the newsletter’s model portfolio has gained an average of 13 percent annually, compared with 8.5 percent for the Wilshire 5000 stock index. It was recently named to The Hulbert Financial Digest’s Honor Roll of newsletters that have consistently beaten market averages in both up and down markets year after year.”
We wish we could link to this entire terrific article here, but it’s not online. We will list a few tips Doug gave Bottom Line readers:
- “We stay full invested through bull and bear markets because market timing has such a low success rate.”
- “We avoid ‘cheap’ stocks — those with a price-to-earnings ratio (P/E) that is considerably below the stock’s average P/E over the last five years.”
- “We prefer companies that are doing well but that have experienced a dip in the stock price because of a temporary business setback or a broad market dump in which worried investors dump holdings indiscriminately.”
- “We like to see a stock’s P/E slightly below, or equal to its five-year average.”
BetterInvesting is a national nonprofit organization that has been empowering individual investors since 1951. Founded in Detroit, the association (formerly known as National Association of Investors Corporation) was borne out of the conviction that anyone can become a successful long-term investor by following commonsense investing practices. BetterInvesting has helped more than 5 million people become better, more informed investors by providing webinars, in-person events, easy-to-use online tools for analyzing stocks and mutual funds, a monthly magazine and a community of volunteers and like-minded investors. For more information about BetterInvesting , visit its website at www.betterinvesting.org or call toll free (877) 275-6242.
ICLUBcentral Inc. develops powerful, commonsense tools for investment clubs and independent investors, including software products such as Toolkit 6 , the StockCentral.com and EquityResearchService.com stock research sites, the myICLUB.com club accounting service, MyStockProspector stock screen program and the market-beating Investor Advisory Service newsletter. ICLUBcentral, a wholly owned for-profit subsidiary of nonprofit investment education association BetterInvesting , has remained true to BetterInvesting’s fundamental investing principles while serving millions of individual investors striving for financial freedom. For more information, visit www.iclub.com.