How does it work?
Club members receive on your e-mail a list of stocks that I own. After that you will receive, at least, 1 buying recommendation per month, but usually we have 4 to 6 recommendations per month. If we think a position should be closed you will be alerted by e-mail. The recommendations are not price sensitive because we are playing for the long run, thus the price at which the buy order is executed is not very relevant.
Do you have a low cost alternative for following the recommendations?
YES! Now we have an alternative for you even if you don't have 5.000Eur to invest.
You will instantly replicate the trades in your own portfolio.
eToro has a limited number of stocks available in their platform, thus it is not possible to perfectly replicate our recommendations in that platform. Though, we estimate that we can replicate more than 70% of our recommendations in eToro.
As a reference, and this is just to have an idea, here it's possible to observe the comparison of returns for the months of December 2020 and February 2021
What is the minimum size account you recommend?
We believe in diversification thus advocate that you should have as many positions as you can afford until you reach 50 different stocks. When you have a portfolio of 50 companies, even if 1 company goes to bankruptcy, you only lose 2% of your investment. Because each position does not represent a big stake of your portfolio it is psychologically easier to support drawdowns of 20 or 30% in individual stocks. The first step is to identify the value that you want to invest in each position. We think that 500€ is a good number. This value will guide your buys not only for the initial portfolio but also for all your future buys. You can try to define this value, for future investments, by dividing by 12 the amount of money that you expect to invest in a 1 year period. For instance, if you think next year you will be able to invest 12.000€, your position size should be 1.000€. If you need to reach a balance between the fees you pay for each transaction and having a diversified portfolio, my advice, is that you should buy 10 of the stocks that we own, with a similar money value. For instance, if you have 5.000€ to invest, choose 10 stocks and buy, approximately 500€ of each. Ideally, your initial portfolio should have 20 stocks.
Can I autotrade your strategy?
We have setup a Collective 2 account, mainly to have an external audit to the results, and you can autotrade if you subscribe the strategy here. BUT, Collective 2 does not reflect 100% the real live account. Collective 2 has a subset of my trades.
Which broker should I use?
We use Degiro and Interactive Brokers because I trust them and they have very low fees. Because I am trading only 2 to 6 times maximum per month the trading fees are not as relevant as in a strategy that trades daily. If the fees are not too expensive you can even trade this strategy on your bank. Do your research and search for a broker with low trading fees and that is regulated.
If you live in countries like Belgium or Switzerland, where you pay taxes for each buy or sell order, I strongly encourage you to choose a broker who withholds automatically the tax and submits it to the authorities. DEGIRO does it. If you want to open a DEGIRO account please use this link and receive €20 in transaction reimbursement. If you want to open a Interactive Brokers account please use this link and receive free IBKR stock!.
If you already make a lot of money with your own live account why did you create this club?
Fair question! I asked a lot of times in the past this question before subscribing to investment clubs or investment advice services. Many of them told me that they have big expenses in offices, salary and research. Then eventually I started to trade on my own and figured out how to make money. The money that I spend on research, I would spend it anyway to trade my account. Now that I know how to trade, why would I offer this for free? Why would I pay from my pocket to maintain this club? Money is never too much and in this life usually what is free is not well appreciated.
How do I join?
At the moment we can only accept Paypal donations.
Because we strongly believe that any medium to long term strategy needs to be followed, at least, for 9 months, the initial subscription comes with a huge discount: 50% if you subscribe for 1 year or 5 months free if you subscribe for 6 months.
Will you ever close this club?
It is on our plans to close the Club to new members when we feel it's getting too big, but for now we don't have a date to do it. In any case, the club will continue for as long as there are members who contribute to the club's expenses with donations