“Does the Action Score Work?”
“How much money do people make with the Action Score?”
These are two frequently asked questions that I get from visitors.
Of course they are.
The core purpose of investing in anything is to make a return. But putting a hard number next to any investing methodology is asking to be shot in the foot.
Those who learn the ins and outs and put it into practice will benefit the most. Many people don’t want to put in any effort, call it quits and then label it as a scam.
I revealed my 2017 portfolio and how I put it together, but I’m not going to say you will achieve the same returns.
To be frank, I attribute the returns you see below to luck. These are the latest results at the end of Q2.
In a down market, invert the greens and reds.
2017 Jae’s Action Score Portfolio
The INVEST1000 Case Study
In order to show you how the Action Score is used and how a portfolio is constructed, INVEST1000 is a case study following the progress of how $1,000 will grow.
It’s a small amount and there are some challenges involved, but the kicker is that this $1,000 is not mine.
A new member has taken upon himself to start small and see how it goes.
We’ll be documenting and tracking, from start to finish, how the portfolio is created by going through the process I take in shortlisting candidates.
I’ve got my fingers crossed that the portfolio will be a success – for obvious reasons.
I could do backtests all day and show you that it’s profitable, but what matters is how it does with real money – in somebody else’s account.
That’s more real and trustworthy right? ?
My own portfolio has benefited by including quant analysis, but how will it do when used by somebody with a very different background?
That’s what INVEST1000 will help us find out.
Meet Lester, our INVEST1000 Case Study Hero
What makes INVEST1000 interesting is that:
- Lester is a graduate student and new to value investing
- Lester has more experience with trading and technicals
- Will be using technical analysis on deciding entry and exit point
- Limited to $1,000 which will introduce some unique challenges
Over the next couple of weeks, we are going to share our video coaching calls where I walk through the process.
We’ll share Lester’s picks and what his plan of action will be.
First, I did not want to do a case study with somebody
- who was too busy to even start
- who was not willing to do the legwork in learning how Old School Value worked
- who wanted me to tell them what to do
- who is too risk averse
Lester was a great fit because:
- He already knew the value of his time
- He understands his own psyche and temperament (most likely due to his poker and trading)
- He is very new to value investing
- He is very motivated and I love his “go get em” attitude
- Most importantly – easy and fun to talk to
Because it’s so important to look at things in context and to understand how INVEST1000 will work, you have to understand the back story of Lester.
With that said, I’m going to hand the mic over to Lester and let him share his story.
(I swear, I did not ask Lester to mention Old School Value like he did…lol)
My History with Money
When I was kid (grade school), I always liked to save money.
Not for the inherent desire to have it pile up and watch it, but I had an intuitive understanding that having a stockpile of resources could come in handy.
I never really wanted anything big. If it came around, then at least I would have a chance in getting it.
My relatives or family are mostly physicians and nurses, so they never really got into investing or stocks. My guess is they just do whatever their financial adviser tells them to do ?.
When my uncle found out I was a Forex trader, he told me he used to have money in the Medallion Fund, when it was still managed by James Simons. I don’t really have any negative views about money like it being evil or anything. I just see it as a tool that offers the owner options.
In my last year of undergraduate, I decided to learn about investing like a responsible adult.
This led me to Rich Dad Poor Dad by Robert Kiyosaki. I actually signed up for the coaching too, but felt it wasn’t that good for the price. I don’t like talking bad about his product, since I loved his books so much.
Basically, I learned that I could actually have money work for me. If I piled enough of it, I could acquire businesses, investments, systems, etc. that could free me from working for a living.
I could be free – at least from the daily need to work to survive.
This newfound belief lead me to get a masters in accounting and financial management (just graduated), study for an MBA, waiting to hear if I got into a MS in financial engineering, and, lastly, a doctorate in business (DBA) with plans to take CFA (Charted Financial Analyst) level 1 this December.
I want to learn everything I can about investing/business, so that I can create a wealth that can free me.
In turn, I can support the causes that I believe in, and directly support hundreds of other families with jobs.
Two years experience trading the spot foreign currency markets. I was a discretionary trader, meaning I would make personal trading judgement, if a currency pair would go up or down. Late last year, I got lucky and found some algorithmic traders.
This allowed me to automate my trading and free up some time.
Personally, I have goals of starting up a multi-strategy hedge fund. In doing so, I need to branch out more than just currencies. I need to learn about more asset classes, so this lead me to stocks – luckily I found Old School Value.
Beliefs About the Stock Market
My beliefs about the stock market is that it is another method to create wealth or (inclusive or) income.
Everybody knows Warren Buffett, and other people have made money through Value Investing.
I am a realist and an empiricist.
So if it worked for others, then it can work for me.
I just have to find the right people and right processes to get there. I think OSV is my new home, or, at least, it’s a good place to start.
My Goals with the $1,000 Investment
My goal with the $1,000 is to profit of course, and to learn how to value invest.
I see this $1,000 as one of the many steps in a thousand miles to reach my destiny of financial freedom – at the very least, give me the